Modeling urban housing market dynamics: Can the socio-spatial segregation preserve some social diversity?

Abstract

Addressing issues of social diversity, we introduce a model of housing transactions between agents who are heterogeneous in their willingness to pay. A key assumption is that agents' preferences for a location depend on both an intrinsic attractiveness and on the social characteristics of the neighborhood. The stationary space distribution of income is analytically and numerically characterized. The main results are that socio-spatial segregation occurs if -and only if -the social influence is strong enough, but even so, some social diversity is preserved at most locations. Comparison with data on the Paris housing market shows that the results reproduce general trends of price distribution and spatial income segregation.

Diversified Housing Developments for Socio-Economic Integration in South Africa’s Urban Human Settlements

“…Diversity plays a very crucial role in influencing people's choices of housing developments and neighbourhoods within towns and cities. People's choices of geographic spaces are encouraged by both the social and economic views (Bailey et al, 2006;Ge & Hokao, 2006;Gauvin et al, 2013). In addition, the location of different social and income groups is influenced by spatial form, amenities and infrastructure within housing developments (Gauvin et al, 2013).…”

“…As a result of diversity, people are able to control and manage some parts of their environments (Jacobs & Appleyard, 1978;Bailey et al, 2006;Talen, 2006;Salama & Gharib, 2012). Furthermore, diversity encourages people to know each other and relate to one other easily (Lima, 2001;Gauvin, 2013). As the same group of people meet regularly for different activities within the same housing developments and neighbourhoods, social cohesion is strengthened.…”

“…According to Jacobs and Appleyard (1978), "good urban design must be for the poor as well as the rich". In addition to different economic groups, good environments must also accommodate people from different cultural and social groups (Lima, 2001;Garba, 2012, Gauvin et al, 2013. Therefore, diversity within urban housing developments can be used to address the apartheid socio-economic segregation which is still experienced within South Africa's towns and cities.…”

“…However, according to Gauvin et al, (2013) people make their residential choices based on their willingness to pay, the level of attractiveness of the different locations and spatial heterogeneous. Thus, diversity for reasons associated with socioeconomic integration in urban areas is one of the major determinants of residential choices.…”

“…• Through mixed developments and land-uses, housing developments diversity reduces racial and ethnic segregation (Bickford-Smith, 1995;Freund, 2001;Lima, 2001;Charles, 2003;Christopher, 2004;Bailey et al, 2006;Donaldson & Kotze, 2006;Alraouf, 2012;Sharma, 2012;Gauvin et al, 2013;Ramoroka, 2013aRamoroka, , 2013bRamoroka, , 2013cG decki, 2014;Smigiel, 2014). People from different racial and ethnic groups are now able to share residential spaces within towns and cities.…”