Nesheim, L;
Oswald, F;
Halket, J;
(2020)
The Housing Stock, Housing Prices, and User Costs: The Roles of Location, Structure and Unobserved Quality.
(Cemmap Working Paper
5/20).
Institute for Fiscal Studies: London, UK.
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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.
| Type: | Working / discussion paper |
|---|---|
| Title: | The Housing Stock, Housing Prices, and User Costs: The Roles of Location, Structure and Unobserved Quality |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1920/wp.cem.2020.520 |
| Publisher version: | http://doi.org/10.1920/wp.cem.2020.520 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | homeownership, housing, tenure choice, hedonic price |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10092127 |
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