Two countries, sixteen cities, five thousand kilometres: How many housing markets?

We examine whether a single (dynamic) housing market exists across 16 cities within Australia and New Zealand. The two countries are closely integrated but cities are up to 5,000 kilometres apart. A single housing market exhibits a common set of forces determining the long run real house price path in all cities. A strong (weak) form occurs when an innovation affects house prices across all cities to an equal (unequal) degree. The 16 cities comprise a weak form single housing market with significant spatial and dynamic complexities. Three city groups emerge with a natural interpretation in terms of economic and spatial characteristics.