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| Anticipating Change in Development
Activity Levels Author: Yiuman Tse, Emily Norman Zietz, and Gaylon Greer Start Page: 159 Abstract: This study
demonstrates how cointegration analysis of privately-owned housing within disparate areas
of the United States can aid developers in anticipating changes in the level of market
activity. The study analyzes change in the number of housing units within four geographic
regions: the Northeast, the Midwest, the South and the West. Whereas most studies of
regional variation in real estate activity have focused on short-run analysis, this
research extends the examination to consider the impact of exogenous variables over a
longer time frame. The study uses Citibase data from 1959 through 1995. Results indicate
that the four regions move together in the long run and are driven by one common factor,
but that change in the South and the West lead those in the other two regions. Results
have widespread policy implications for residential and commercial developers nationwide,
because change within the dominant areas may serve as indicators of developing change
elsewhere. |
