Intra-urban house prices in Madrid following the financial crisis: an exploration of spatial inequality

Abstract

In this paper we explore the temporal dynamics of spatial inequality in housing prices for Madrid, the capital city of Spain. Spatial inequalities are a concerning feature of urban areas across the globe. It has been suggested that within cities housing prices are becoming more geographically unequal over time, particularly since the 2008 housing market crash. However, more evidence is needed at the intra-urban level to understand neighbourhood house price differences in large urban areas. Changes are analysed during a key period of the housing market bust (2010–2015) and boom (2016–2019), using data from a major housing listing portal. Fine grain space-time analysis of the distribution of housing prices supports an increase in spatial inequality and polarisation at the neighbourhood level. Two spatially differentiated housing sub-markets of high- and low-priced housing are identified. The persistence and growth of spatial house price inequality has important societal implications for the wealth gap and segregation of rich and poor in cities.