We present a modified open monocentric city model that assumes that land is available for conversion into new housing … throughout the city. The model predicts that positive local income shocks (i) increase the city’s share of multi-family housing … Housing Survey from 1984 to 2004 and find support for both predictions. We confirm that the adjustment process is driven by …

equilibrium framework. Preferences are modelled such that demand for housing units in the city is downward sloping, which yields a … redeveloped land that accrues to its owner. However, depending on the price elasticity of urban housing demand and the strength of …