What It Measures
Measures consistency in housing price behavior and vulnerability to sharp boom-bust cycles that can destabilize resident outcomes.
Framework Component 2
Market Volatility
Market Volatility evaluates how stable housing price behavior is through expansion and contraction cycles.
Large swings in prices can increase displacement risk, undermine planning confidence, and weaken long-horizon housing stability.
Interpretation
Higher scores indicate steadier market behavior over time.
Lower scores indicate greater exposure to destabilizing cycles.
Use with affordability and supply signals to avoid over-reading a single pillar.
Core Signals
Signal 1
Magnitude and frequency of large directional price swings.
Signal 2
Relative deviation from national and state reference behavior.
Signal 3
Persistence of instability versus short-lived noise.
Signal 4
Structural volatility pressure independent of one-off shocks.
Questions This Component Answers
Question 1
Is this location structurally stable beyond short market cycles?
Question 2
How vulnerable is this market to boom-bust behavior?
Question 3
Does local volatility diverge from state and national norms?