THE HOUSING STOCK, HOUSING PRICES, AND USER COSTS: THE ROLES OF LOCATION, STRUCTURE, AND UNOBSERVED QUALITY

Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in rental and owner-occupied markets? What can answers to these questions tell us about economic theories of homeownership? Using the English Housing Survey, we estimate a select...

Full description

Saved in:
Bibliographic Details
Published in:International economic review (Philadelphia) 2020-11, Vol.61 (4), p.1777-1814
Main Authors: Halket, Jonathan, Nesheim, Lars, Oswald, Florian
Format: Article
Language:English
Subjects:
Analysis
Economic theory
Economics and Finance
Home ownership
Housing
Housing costs
Humanities and Social Sciences
Local government
Markets
Prices
Property
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in rental and owner-occupied markets? What can answers to these questions tell us about economic theories of homeownership? Using the English Housing Survey, we estimate a selection model of property allocations to the owner-occupied and rental sectors. Structural characteristics and unobserved quality are important for selection. Location is not. Accounting for selection is important for rent-toprice ratio estimates and explains some puzzling correlations between rent-to-price ratios and homeownership rates. These patterns are consistent with, among others, hypotheses of rental market contracting frictions related to housing maintenance.
ISSN:0020-6598
1468-2354
DOI:10.1111/iere.12475