Examining the Effect of Squatter Settlements in the Evolution of Spatial Fragmentation in the Housing Market of the City of Buenos Aires by Using Geographical Weighted Regression

Abstract

The spatial fragmentation in the housing market and the growth of squatter settlements are characteristic for the metropolitan areas in developing countries. Over the years, in large cities, these phenomena have been promoting an increase in the spatial concentration of poverty. Therefore, this study examined the relationship between the squatter settlement growth and spatial fragmentation in the housing market of Buenos Aires. By performing a spatiotemporal analysis using geographically weighted regression in the house prices for the years 2001, 2010, and 2018, the results showed that while squatter settlements had a strong negative effect on house prices, the affected areas shifted over time. Our findings indicate that it is not the growth of the squatter settlement that causes spatial fragmentation, but rather the widening income disparities and further segregation of low-income households. However, squatter settlements determined the spatial demarcation of fragmented housing market by attracting low-income households to surrounding low house price areas.