Federal Housing Administration (FHA) and the Urban Ring: A Simulation Study

摘要

Viewing urban areas as concentric circles, and using them as a model, this paper presents simulation results for the period 1960 to 1980. The basic ring model, which assumes that homogeneous households maximize their utility by trading off increased commuting costs for reduced housing costs, has been modified to collectively include several features useful for housing market analysis. Among these are a fixed housing stock depreciating over time but capable of augmentation through new construction; the inclusion of operating expenditures in the production of housing services; a focus on households of different races, tenure, and income; and the influence of racial preference on household behavior. The report first presents a discussion of two alternative household classifications and corresponding average urban areas. The theory, measurement, and estimation of housing demand is then developed in subsequent chapters, followed by an analogous development for housing supply. Market equilibrium and equilibrium dynamics is discussed, and the results of the historical and policy simulations are presented. The paper concludes with a summary of the results. Tables, figures, reference notes, and approximately 40 references are included.