Authors: Stephen Malpezzi
Fannie Mae Foundation

This article explores possible relationships between certain aspects of the so-called "new economy," in particular the economic structure of a metropolitan area (especially its technological orientation), and some aspects of the housing market (namely land use and development regulation, and housing prices). Regions with strong educational systems are more likely to have a high-tech economy. Amenities, climate, and the urban regulatory regime seem to have little systematic effect on measures of the technological orientation of a region. Housing prices are strongly affected by regulation, as well as by several demand-side determinants, notably demographic variables. The measure of technological orientation used in the article explained little of the variation in 1990 house prices, but was a substantial driver of 2000 house prices.

Related Documents
Related Topics