We explore the nature of spatial diffusion of demand in regional housing markets in England. Our structural model, at the regional level, includes a demand function and a rental adjustment relationship expressed in terms of prices. We use a microeconomic model of housing market matching and...

We propose forecasts of regional and local house prices based on estimates of a structural model that has several distinctive features. First, we model not only the endogenous relationship between housing prices and demand, but also microeconomic features of the market ñ in particular, the...