Abstract
The analysis of housing markets differs from the analysis of most other markets because of the virtually unique combination of three key characteristics of housing. The first is durability. A reasonably well constructed house can provide services for a century or more. The second is the extent of differentiation across houses in their characteristics. Houses range widely in size, number and types of rooms, construction quality, and architectural style. Finally, houses are difficult to move; they’re fairly immobile. This immobility means that the value of a house varies with the characteristics of the other houses in the neighborhood and the quality of the public services offered by the local jurisdiction. A thorough housing market analysis requires consideration of each of these factors.