Regression analysis is used to examine the interaction of a number of processes that are thought to be responsible for the geographical transfer of value within the built environment. These are derived from an account by Smith of the restructuring of urban space. The ‘transfer’ of value is imputed from the differential movement of house prices between 1970 and 1988 for geographical submarkets within the Adelaide Metropolitan Area.
Although the interpretation of the regression models is complicated, the evidence for a tilting of the ‘value transfer’ gradient from an inner-outer bias, to an outer—inner bias, can be statistically inferred from the processes of restructuring that have redirected capital flows within the built environment of Australian cities such as Adelaide, Sydney, and Melbourne in the course of the last two decades. Thus the uneven capital formation that characterises urban restructuring and is ultimately capitalised into real changes in house prices is a significant source of the added wealth that is accumulated from homeownership. By this means it is possible to bridge the two ‘islands’ of theory: Smith's account of urban restructuring and Saunders's concern with the sources of wealth accumulation within the housing market.
Get full access to this article
View all access options for this article.
References
1.
ABS, 1982Other Government Buildings Completed 1975–82Australian Bureau of Statistics (Commonwealth of Australia, Belconnen, ACT 2617)
2.
ABS, 1989Housing for Owner Occupation, Australia Australian Bureau of Statistics, catalogue no. 5609.0 (Commonwealth of Australia, Belconnen, ACT 2617)
3.
BadcockB A, 1982, “Removing the spatial bias from state housing provision in Australian cities”Political Geography Quarterly1137–157
4.
BadcockB A, 1984Unfairly Structured Cities (Basil Blackwell, Oxford)
5.
BadcockB A, 1986, “Land and housing provision”, in The State as Developer. Public Enterprise in South Australia Ed. SheridanK (Royal Australian Institute of Public Administration in association with Wakefield Press, Netley, South Australia) pp 160–186
6.
BadcockB A, 1989a, “Homeownership and the accumulation of real wealth”Environment and Planning D: Society and Space769–91
7.
BadcockB A, 1989b, “An Australian view of the rent gap hypothesis”Annals of the Association of American Geographers79125–145
8.
BadcockB A, 1991, “Stage one report to the Department of Community Services and Health: ‘A survey of homeowners in South Australia’—issues, methodology, and first stage findings”, unpublished paper; copy available from author
9.
BadcockB A, 1992, “Adelaide's heart transplant, 1970–88: 1. Creation, transfer, and capture of ‘value’ within the built environment”Environment and Planning A24.
10.
BadcockB ABrowettM, 1991, “The responsiveness of the private rental sector in Australia to changes in Commonwealth taxation policy”Housing Studies6182–192
11.
BadcockB ABrowettM, 1992, “Adelaide's heart transplant, 1970–88: 3. The deployment of capital in the renovation and redevelopment submarkets”Environment and Planning A
12.
BeauregardR A (Ed.), 1989Atop the Urban Hierarchy (Rowman and Littlefield, Totowa, NJ)
13.
BurkeTHaywardD, 1990, “Housing Melburnians for the next twenty years: Problems, prospects and possibilities”Urban Policy and Research8122–151
14.
CarchediG, 1977On the Economic Identification of Social Class (Routledge, Chapman and Hall, Andover, Hants)
15.
DalyM T, 1988, “Australian cities: The challenge of the 1980s”Australian Geographer19149–161
16.
DITAC, 1988Indicative Planning Council for the Housing Industry: Resources Report 1988Department of Industry, Technology and Commerce (Australian Government Publishing Service, Canberra)
17.
DuncanJLeyD, 1982, “Structural Marxism and human geography: A critical assessment”Annals of the Association of American Geographers130–58
18.
HamnettCRandolphB, 1988Cities, Housing and Profits. Flat Break-up and the Decline of Private Renting (Hutchinson Education, London)
19.
HarveyD, 1973Social Justice and the City (Edward Arnold, Sevenoaks, Kent)
20.
HarveyD, 1978, “Urbanization under capitalism: A framework for analysis”International Journal of Urban and Regional Research2101–131
21.
HarveyD, 1985The Urbanization of Capital (Basil Blackwell, Oxford)
22.
HugoG J, 1984, “Macro demographic and social trends in Australia: The implications for urban development and management”, in Urban Australia: Living in the Next Decade (Australian Institute of Urban Studies, Canberra) pp 24–58
23.
KingR J, 1989a, “Capital switching and the role of ground rent: 1. Theoretical problems”Environment and Planning A21445–462
24.
KingR J, 1989b, “Capital switching and the role of ground rent: 2. Switching between circuits and switching between submarkets”Environment and Planning A21711–738
25.
KirwanR M, 1989, “Finance for urban public infrastructure”Urban Studies26285–300
26.
LloydC JTroyP N, 1981Innovation and Reaction: The Life and Death of the Federal Department of Urban and Regional Development (Allen and Unwin, Sydney)
27.
LoganJ RMolotchH L, 1987Urban Fortunes: The Political Economy of Place (University of California Press, Berkeley, CA)
28.
NeutzeM, 1977Urban Development in Australia. A Descriptive Analysis (Allen and Unwin, Sydney)
29.
SaundersP, 1990A Nation of Home Owners (Unwin Hyman, London)
30.
SavitchH V, 1988Post-industrial Cities. Politics and Planning in New York, Paris and London (Princeton University Press, Princeton, NJ)
31.
SayerA, 1982, “Explaining manufacturing shift: A reply to Keeble”Environment and Planning A14119–125
32.
SayerA, 1987, “Hard work and its alternatives”Environment and Planning D: Society and Space5395–399
33.
SheridanK (Ed.), 1986The State as Developer. Public Enterprise in South Australia (Royal Australian Institute of Public Administration in association with Wakefield Press, Netley, SA)
34.
SmithN, 1982, “Gentrification and uneven development”Economic Geography58139–155
35.
SmithN, 1986, “Gentrification, the frontier, and the restructuring of urban space”, in Gentrification of the City Eds SmithNWilliamsP (Allen and Unwin, Winchester, MA)
36.
SmithNWilliamsP (Eds), 1986Gentrification of the City (Allen and Unwin, Winchester, MA)
37.
StimsonR J, 1982The Australian City. A Welfare Geography (Longman Cheshire, Melbourne)
38.
UDCC, 1987Metropolitan Adelaide Development Program 1986–91Urban Development Co-ordinating Committee (Department of Environment and Planning, 55 Grenfess Street, Adelaide, SA 5000)
