HOUSING SECTOR AS A LINEAR DYNAMIC SYSTEM.

This paper describes the structure and accuracy of a model depicting the housing sector of the United States as a linear dynamic system. An aggregate model is used to demonstrate the linear system approach and reconstruct the demand for housing. A disaggregated model, providing the rate of production and level of occupied housing units stratified by the number of rooms, incorporates net changes in the housing stock through additions and removals and modification through conversion and merger.