Cross-border interactions and flows of people in Mexico-United States border have increased in recent decades. In these transborder agglomerations many households have the opportunity to buy or rent housing on the other side of the border, this demand is particularly important on borders with income disparities, as is the case with the Tijuana-San Diego conurbation. This phenomenon, although not new, has been little explored, especially in North America.
The objective of this research is to identify the factors that determine housing prices based on property, neighborhood and population characteristics. In particular, the influence of demographic characteristics related to demand from the U.S. on local prices is examined.
The methodological design has as its framework the regional and urban economy, in particular the principles of location, contiguity and dependence. The methodology consisted of three parts. First, the principal component analysis to find the main neighborhood factors. Second, the hedonic price model to reveal preferences. Third, the spatial econometric techniques to deal with spatial effects and to robust the model.
Key findings include a significant and positive relationship between property attributes, neighborhood attributes, and demographic characteristics of nationality or previous residence in the U.S., with housing prices. This finding is consistent with evidence in border regions where some households have the opportunity to choose between two markets, depending on their income and the real estate offered. Likewise, spatially clustered behavior was identified in the principal components representing the provision of neighborhood infrastructure, which points to the existence of real estate submarkets by sectors with similar characteristics. Finally, this research presents a model to explain the phenomenon of housing prices in a border context and contributes to the academic literature on housing markets in North American cities.
Mots clés : cross-border|housing|transborder agglomeration|regional economy|spatial econometrics
A104046AD