Template-Type: ReDIF-Paper 1.0
Title: Spatial Distribution of Housing Liquidity
Author-Name: Francisco Amaral
Author-Email: francisco.amaral@df.uzh.ch
Author-Name: Mark Toth
Author-Email: mark-toth@uni-bonn.de
Author-Name: Jonas Zdrzalek
Author-Email: jonas.zdrzalek@ifw-kiel.de.

  
Classification-JEL:  G12, G51, R21, R30.
Keywords: housing liquidity, housing prices, cities, spatial equilibrium, housing demand, asset pricing.


Abstract:
This paper examines the relationship between location, liquidity, and prices in housing markets. We construct spatial datasets for German and U.S. cities and show that
liquidity and prices decline with distance to the city center. To rationalize these
patterns, we develop a spatial model of housing search. Location preferences concentrate buyers in central areas, generating tighter markets that are more liquid
and command higher prices. Counterfactuals show that increasing search efficiency
raises welfare and prices, especially in peripheral areas. Our findings highlight the
importance of demand-side preferences and market tightness for understanding liquidity and asset prices

Note: 
Length: 129
Creation-Date: 2026-01
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp727
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2025_727