Online Housing Search and the Geography of Submarkets

Abstract

The importance of search behaviour has long been recognised in the study of housing markets but research in this area has frequently been hampered by a lack of data. In many nations, the vast majority of initial housing search queries are now conducted online. The and data this generates could, in theory, provide us with better insights into how housing market search operates spatially, in addition to generating new knowledge on the geography of local housing submarkets. This paper seeks to explore these propositions by discussing existing conceptions of search before developing a framework for understanding housing search in the digital age. A large, user-generated housing market search dataset is then introduced and analysed with respect to area definition, submarket geography and search pressure locations. The results indicate that this kind of 'big data' approach to housing research can could generate important new insights for housing market analysts.

Housing Search in the Age of Big Data: Smarter Cities or the Same Old Blind Spots?

“…Search tools include general information gathered from social networks and past experiences, but also particular media. The internet has transformed the housing search process, introducing various websites that provide information on available housing (Rae 2015). In the context of contemporary theories of housing search, this wider availability of data could improve overall access to information and interrupt the reproduction of existing forms of segregation by providing searchers with information on places they might not otherwise consider or even know about.…”

Defining spatial housing submarkets: Exploring the case for expert delineated boundaries

“…The lack of consistency in approach is partly a reflection of the complex array of factors that potentially give shape to submarkets. These include interest in the information flows and search patterns (Rae, 2015) that might give rise to what Clapp and Wang (2006) call 'soft boundaries'; land use planning and regeneration policies that alter supply and reconfigure demand side behaviours (Jones et al, 2005); and administrative boundaries including school catchment areas or tax districts that form 'hard boundaries'. The influence of these different factors is often simultaneous but the effects are rarely spatially coterminous.…”

“…Third, an understanding of submarket structures can help improve the decision making of a variety of real estate market actors. Specifically, this can assist housing consumers to understand and minimise search costs (Rae, 2015); can aid realtors in the marketing of properties for sale (Palm, 1978); and can improve the reliability of attempts by lenders and investors to price risk (Peng and Thibodeau, 2013).…”

New Insights into Rental Housing Markets across the United States: Web Scraping and Analyzing Craigslist Rental Listings

“…Housing markets are ripe for such exploration. Rae (2015) recently looked at eight hundred thousand user-generated housing searches on the British site Rightmove to study the geography of submarkets. However, to date there has been minimal research on largescale VGI rental listings or the substantial housing market represented by Craigslist.…”