Abstract
This paper presents first results of modelling income and wealth inequalities resulting solely from housing market dynamics. An existing behaviour based agent-based model of the English and Welsh housing market is used to analyse the demographies of more expensive and cheaper areas emerging from buyer, seller and realtor interactions. The model is analysed for a small set of macroeconomic configurations of interest rates and loan to value ratios. The model demonstrates how quickly higher income areas emerge, with mean incomes between 10 and 20% higher in the expensive area. This difference is accentuated for higher interest rates. The model also demonstrates the strong relationship between wealth and housing assets with the mean level of wealth higher bu about 20% (but up to 50% for loan to value ratios of 80%).