Search Adjustment in Local Housing Markets

Abstract

There are characteristics of housing and the housing market which make a search adjustment/information acquisition perspective an appropriate starting point. The empirical work presented in this chapter is based upon an investigation of the City of Glasgow housing market. With the start of the next year there is then a peaked inflow of returning students and new students which creates substantial pressures in the local housing market. In this study it was possible to ascertain, from three sources, the time distribution of the flow of student searchers into the local housing market. In order to derive empirically testable hypotheses from the model the authors therefore make use of the generalisations introduced earlier. For experienced searchers with lower search costs then, ceteris paribus: Use of the assumption that all potential entrants select an initial search location in accord with aspirations allows they to deduce implications concerning the search adjustment process.