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European Urban and Regional Studies, Vol. 14, No. 4, 362-381 (2007)
DOI: 10.1177/0969776407076289

Spatial Disparities and Housing Market Deregulation in the Randstad Region

A Comparison With the San Francisco Bay Area

Liou Cao

McKinsey & Company, Inc., New York Office, USA

Hugo Priemus

Delft University of Technology, The Netherlands, h.priemus{at}tudelft.nl

Since 1989, Dutch housing policy has been changing to allow more scope for market forces. This article will evaluate the spatial disparities related to these policy changes in the development of the housing market in the Randstad region of the Netherlands. The evaluation is placed in an international perspective by drawing a comparison between the Randstad and the San Francisco Bay Area in the United States. The comparison focuses on three specific aspects: suburbanization, spatial disparity in the distribution of household income, and spatial differentiation in the value of property. The results show that since the more market-oriented housing policy came into force, the Randstad has witnessed faster suburbanization and — to a certain extent — a greater disparity in property value in urban and suburban areas than the San Francisco Bay Area, though the gaps in household income are narrower in the Randstad than in the Bay Area. The comparison draws attention to the policy implications of problems that are likely to be caused by suburbanization and property value segregation in the Randstad and presents a number of policy recommendations. Spatial policy, urban renewal policy, and tax and income policy can play a significant role in mitigating the spatial impacts of housing market deregulation on the Randstad.

Key Words: household income • housing market deregulation • Netherlands • property values • spatial disparity • suburbanization • USA


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