Lucie Giorgi: lucie.giorgi[at]univ-amu.fr
Ricardo Guzman: ricardo.guzman[at]univ-amu.fr
Natalia Labrador: natalia.labrador-bernate[at]univ-amu.fr
Nathan Vieira: nathan.vieira[at]univ-amu.fr
In this paper I study how changes in the composition of the local residents due to structural technological changes have shaped the cross-section of housing prices within cities in Germany during the period 2007-2021. To do so I combine a large listing dataset containig information on housings at the 1x1km2 grid level with administrative data for the labor market. I first show that the price of housings of different quality evolved heterogeneously both between and within cities, and that housings of low-quality have gained more value in big cities than in the rest of the country, making the local market there more homogeneous. By relying on a shift-share approach, I study the impact of the variation in the abstract jobs at different quartile of the housing prices/quality distribution. I show that this change in the composition of the local demand has heterogeneous effects along the housing prices distribution, and can be seen as a spillover effect from the top to the bottom of the distribution due to mis-smatches in the local housing sub-markets. Finally, I study the implications for the local workers in terms of welfare and the displacement effects of low-skilled worker.