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Market Structure and the Price of Housing Services

While many aspects of housing markets have been extensively analysed, little empirical work has been undertaken on the supply of housing services. Despite this dearth of information, many researchers have characterised the supply of housing as being competitive. It is the intent of this article, therefore, to open up the discussion of the supply of housing services and to examine the extent of sellers' market concentration over a set of multifamily rental housing submarkets. New data on sellers' concentration are presented. A model to determine the effect of non-competitive firm behaviour on the price of housing services is specified and estimated. Results support the hypothesis that the supply of housing services may not be perfectly competitive.

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