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

Jonathan Halket, Lars Nesheim and Florian Oswald

International Economic Review, 2020, vol. 61, issue 4, 1777-1814

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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1111/iere.12475

Related works:
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 (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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:61:y:2020:i:4:p:1777-1814

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Michael O'Riordan and Dirk Krueger

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().