Friday, 7 June 2019

Household location in English cities

a column by David Cuberes, Jennifer Roberts and Cristina Sechel for VOX: CEPR’s Policy Portal

Richer households have typically chosen to live in the suburbs of big cities because of the lower prices and larger properties.

This column reports evidence from England that multiple factors now influence household location, including such urban amenities as parks, monuments, restaurants, and public transport. Analysis of the eight largest cities outside London finds no systematic relationship between income and household distance to the city centre. Indeed, household heterogeneity is an important determinant of location: for example, on average households with heads who are migrants live 25% closer to the centre than non-migrants; and only households who are employed are influenced by the availability of public transport.

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