SIMULATION OF HOUSING MARKET DYNAMICS: AMENITY DISTRIBUTION AND HOUSING VACANCY

This paper proposes a new approach to conduct simulation study of housing market within a mono-centric urban land use framework. In particular, to investigate the non-equilibrium dynamics of housing market, a (preemptive) queuing system with priority to search is designed to simulate the population flow. All housing units within the market are differentiated by its location (defined by its distance to central business district (CBD)) and the amenity level associated with the location. Heterogeneity has been introduced into the model through both agents' income level and preference on housing services. The results conclude that the spatial pattern of housing vacancy is not only driven by the distance to CBD, but also by the amenity distribution in the urban area.