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

abstract

• AbstractWhich housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in rental and owneroccupied 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 owneroccupied and rental sectors. Structural characteristics and unobserved quality are important for selection. Location is not. Accounting for selection is important for renttoprice ratio estimates and explains some puzzling correlations between renttoprice ratios and homeownership rates. These patterns are consistent with, among others, hypotheses of rental market contracting frictions related to housingmaintenance.

authors

• Halket, Jonathan

published proceedings

• INTERNATIONAL ECONOMIC REVIEW

altmetric score

• 1.25

author list (cited authors)

• Halket, J., Nesheim, L., & Oswald, F.

citation count

• 16

publication date

• November 2020

publisher

• Wiley  Publisher

keywords

• 38 Economics
• 3801 Applied Economics

Digital Object Identifier (DOI)

• 10.1111/iere.12475

start page

• 1777

end page

• 1814

volume

• 61

issue

• 4

URL

• http://dx.doi.org/10.1111/iere.12475