К теории рынка жилья: модель дифференциации цен на квартиры в зависимости от их готовности

To the theory of housing markets: a model of differentiation of prices for apartments depending on their readiness

Victor Polterovich and Dmitry Ilinskiy
Authors registered in the RePEc Author Service: Виктор Меерович Полтерович

MPRA Paper from University Library of Munich, Germany

Abstract: We propose a model of a firm that differentiates prices for finished and unfinished housing. The demand for housing is formed by consumers solving a dynamic utility maximization problem. The proposed formulation of this problem takes into account the fact that the purchased apartment may be available for consumption only after a certain time. In this case, at the moment of receiving the ready-made apartment the consumer gets rid of the need to pay the rent for the apartment in which he previously lived. Numerical calculations based on the data typical for the Moscow housing market have shown that relatively poor segments of the population prefer to pay for the apartment when it is not ready. At the same time the lower the rent rate, the higher the price of unfinished apartments and the relatively lower the share of consumers who prefer to buy them

Keywords: price of unfinished apartment; housing rent; loan rate; developer's profit (search for similar items in EconPapers)
JEL-codes: D02 D14 G21 (search for similar items in EconPapers)
Date: 2021-12-05
New Economics Papers: this item is included in nep-upt
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