The Housing Stock, Housing Prices, and User Costs: the Roles of Location, Structure, and Unobserved Quality

Jonathan Halket, Lars Nesheim and Florian Oswald
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Jonathan Halket: University of Essex, Texas A&M University System
Lars Nesheim: UCL - University College of London [London]

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Abstract: 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-to-price 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.

Date: 2020-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03799462
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Published in International Economic Review, 2020, 61 (4), pp.1777-1814. ⟨10.1111/iere.12475⟩

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Related works:
Journal Article: THE HOUSING STOCK, HOUSING PRICES, AND USER COSTS: THE ROLES OF LOCATION, STRUCTURE, AND UNOBSERVED QUALITY (2020)
Working Paper: The Housing Stock, Housing Prices, and User Costs: the Roles of Location, Structure, and Unobserved Quality (2020)
Working Paper: The Housing Stock, Housing Prices, and User Costs: The Roles of Location, Structure and Unobserved Quality (2020)
Working Paper: The housing stock, housing prices, and user costs: the roles of location, structure and unobserved quality (2015)
Working Paper: The housing stock, housing prices, and user costs: the roles of location, structure and unobserved quality (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03799462

DOI: 10.1111/iere.12475

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