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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Lars Nesheim: Institute for Fiscal Studies and University College London

No CWP5/20, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract: Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in the rental and owner-occupied markets? And what can the answers to the previous questions tell us about economic theories of homeownership? Using the English Housing Survey, we estimate a selection model of the allocation of properties 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 estimates of rent-to-price ratios and can explain some puzzling correlations between rent-to-price ratios and homeownership rates. These patterns are consistent with, among others, hypotheses of contracting frictions in the rental market likely related to housing maintenance. Download the appendix

Date: 2020-02-03
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (13)

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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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