Homeownership and the scarcity of rentals

Halket, Jonathan; Custoza, Matteo Pignatti Morano di

doi:10.1016/j.jmoneco.2015.08.003

Cited by 38 publications

(29 citation statements)

References 44 publications

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“…Recent studies have turned to quantitative evaluations using micro data (see Diaz and Perez, 2013;Head et al, 2014;Ngai and Tenreyro, 2014;Guren and McQuade, 2014;Anenberg and Bayer, 2014;Halket and Pignatti, 2015;Burnside et al, 2016;Guren, 2017).Most of these authors are interested in how search modifies the time series dynamics of house prices and market activity in homogeneous housing markets. In contrast, our focus is on steady states of markets with rich cross sections of houses and buyers.…”

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confidence: 99%

Segmented Housing Search

Piazzesi¹,

Schneider²,

Stroebel³

2015

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This paper studies housing markets with multiple segments searched by heterogeneous clienteles. We explore market and search activity for the San Francisco Bay Area. Variation within narrow geographic areas is large and differs significantly from variation across those areas. In particular, search activity and inventory covary positively within cities and zip codes, but negatively across those units. A quantitative search model shows how the interaction of broad and narrow searchers drives these differences in housing market activity at different levels of aggregation, determines price discounts due to market frictions, and shapes the response of local housing markets to supply and demand shocks.

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confidence: 99%

Segmented Housing Search

Piazzesi¹,

Schneider²,

Stroebel³

2015

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“…is constant is a shortcut. In a more elaborated model one could make this spread dependent on the characteristics of a dwelling such as size, localization or structure or the expected duration of the rental contract (Halket, Nesheim, & Oswald, 2015;Halket & Pignatti Morano di Custoza, 2015). Let us now compare the user cost for two households that do not have any assets.…”

Section: Theoretical Modelmentioning

confidence: 99%

Private rental housing market underdevelopment: life cycle model simulations for Poland

Rubaszek

2019

Baltic Journal of Economics

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The share of the private rental housing market in Central and Eastern European countries is low. With a survey data from Poland, I show that strong tenure preferences of households toward owning can be attributed to both economic and psychological factors. Building on these findings, I develop a life cycle model and I conduct counterfactual simulations to evaluate how changes in the structure of the rental market affect its size. I show that in the alternative scenario, which assumes (i) a change in the quality of rental services, (ii) lowering rental prices and (iii) diminishing fiscal incentives to own, the size of the private rental market is significantly higher, which leads to welfare gains for poor households.

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“…The historical house price appreciation rate is constructed in the same manner, but with only two years of data. 41 Next we examine the construction of the popularity index. According to Diamantopoulos and Winklhofer (2001), constructing an index demands a proper set of formative indicators, which must include all facets of the determinants involved; any omission can lead to an incomplete index.…”

Section: Data and Popularity Index Constructionmentioning

confidence: 99%

“…Hence, six years of rental contract collection should be sufficient for our purpose to control for "rental market conditions before the sampling period". 41 Notice that the growth rate of rent exhibits cyclical behavior. Reverse chronologically, the average rent growth rate across our sampled REDs is 19.83% in 2010, -11.6% in 2009, 10.58% in 2008, 7.967% in 2007, and -1.267% in 2006.…”

Section: Data and Popularity Index Constructionmentioning

confidence: 99%

What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

Huang

Leung

Tse³

2017

SSRN Journal

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We build an on-the-house-search model and show analytically that the rentto-price ratio (or rental yield) and turnover rate, which are frequently used metrics for the housing market, are jointly determined in equilibrium. We therefore adopt a simultaneous equation approach on matched sale-rental pairs in our empirical investigation, as a housing unit cannot be owner-occupied and renter-occupied at the same time. Our empirical results confirm a higher turnover rate is associated with a lower rent-to-price ratio, as predicted by the model. Furthermore, our results suggest a form of "dichotomy" in the empirical determinants of rental yield and turnover at the real-estate-development (RED) level: the demographic structure, and past return performance affect its turnover rate, while popularity, human capital environment, mortgage burden, and long run rent growth determine the rental yield. The robustness of our results are established through a series of tests. In addition to these findings, our tractable search-theoretic model, a ranking of more than 130 RED in Hong Kong based on the popularity index we construct, and the estimated brandpremium for different major real estate developers may also carry independent research and practical interests.

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Homeownership and the scarcity of rentals

Cited by 38 publications

References 44 publications

Segmented Housing Search

Segmented Housing Search

Private rental housing market underdevelopment: life cycle model simulations for Poland

What Account for the Differences in Rent-Price Ratio and Turnover Rate? A Search-and-Matching Approach

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