| 1. |
- Clapham, Eric, et al.
(författare)
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On the pricing of real estate index linked swaps
- 2002
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Ingår i: Journal of Housing Economics. - : Elsevier. - 1096-0791 .- 1051-1377. ; 11:4, s. 418-432
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Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- In this paper we discuss the pricing of commercial real estate index linked swaps (CREILS). This particular pricing problem has been studied by Buttimer et al. (1997) in a previous paper in this journal. We show that their results are only approximately correct and that the true theoretical price of the swap is in fact equal to zero. This result is shown to hold regardless of the specific model chosen for the index process, the dividend process, and the interest rate term structure. We provide an intuitive economic argument as well as a full mathematical proof of our result. In particular we show that the nonzero result in the previous paper is due to two specific numerical approximations introduced in that paper, and we discuss these approximation errors from a theoretical as well as from a numerical point of view.
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| 2. |
- Ahmed, Ali, et al.
(författare)
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Are lesbians discriminated against in the rental housing market? Evidence from a correspondence testing experiment
- 2008
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 17:3, s. 234-238
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Tidskriftsartikel (refereegranskat)abstract
- This paper presents a field experiment, conducted over the Internet, studying possible discrimination against lesbians in the rental housing market in Sweden. We let two fictitious couples, one heterosexual and one lesbian, apply for vacant rental apartments advertised by landlords on the Internet. We then investigated whether there were differences between the couples in the number of received call-backs, invitations to further contact, and invitations to immediate showings. Our findings show no indication of differential treatment of lesbians by landlords. A discussion relating to earlier findings is provided.
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| 3. |
- Caesar, Carl, 1982-, et al.
(författare)
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The impact of leasehold status on apartment price
- 2019
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Ingår i: Journal of Housing Economics. - : Academic Press. - 1051-1377 .- 1096-0791. ; 46
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Tidskriftsartikel (refereegranskat)abstract
- Based upon cooperative apartments sold in Stockholm, Sweden during the period of 2012 to mid-2014, we find that leasehold status (meaning that the cooperative does not own the land that the apartment building occupies) has a small but statistically significant impact on price of 2.3% when controlling for location and apartment characteristics in a hedonic model. At the time of renegotiation (i.e. a lease duration of 0), leasehold depreciates price with 4.2%. We also apply propensity score matching, which results in slightly larger negative impact on the price being estimated. As current lease payments are covered by monthly fees that are to be paid to the cooperative, a negative effect on price should mostly be attributed to an increased uncertainty of future levels of monthly fees. We therefore extend the existing literature by examining the impact on price by the remaining leasehold term whilst still controlling for monthly fees. Consistent with our hypothesis, apartment prices are found to increase with 0.22% for each additional year that remains until renegotiation of the lease contract.
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| 4. |
- Carlsson, Magnus, et al.
(författare)
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Discrimination in the rental market for apartments
- 2014
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 23, s. 41-54
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Tidskriftsartikel (refereegranskat)abstract
- Discrimination in the housing market may create large economic inefficiencies and unfair individual outcomes, but is very difficult to measure. To circumvent the problems with unobserved heterogeneity, most recent studies use the correspondence testing approach (i.e. sending fictitious inquiries to landlords). In this study, we generalize the existing methodology in order to facilitate a test of to what extent the measured degree of discrimination depends on applicant, landlord/apartment, and regional characteristics. To show how this more general methodology can be implemented, we investigate the effects of gender, ethnicity, age, and employment status in the Swedish rental market for apartments. Our results confirm the existence of widespread discrimination against some of the groups, but also show that the degree of discrimination varies substantially with landlord, apartment, and regional characteristics. This heterogeneity highlights the importance of using a broad approach when conducting correspondence studies. Our results also allow us to interpret the nature of discrimination and how it relates to segregation and geographical sorting. (C) 2013 Elsevier Inc. All rights reserved.
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| 5. |
- Chen, Jie, 1974-
(författare)
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Re-evaluating the association between housing wealth and aggregate consumption : New evidence from Sweden
- 2006
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 15:4, s. 321-348
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Tidskriftsartikel (refereegranskat)abstract
- This paper extends the VECM cointegration model and PT (permanent-transitory) variance decomposition framework proposed by Lettau and Ludvigson [Lettau, M., Ludvigson, S.C., 2004. Understanding trend and cycle in asset values: reevaluating the wealth effect on consumption. American Economic Review 94 (1), 276-299.] and applies them to Swedish data from 1980q1 to 2004q4. There is strong statistical evidence that the long run movements of aggregate consumption, disposable income, housing wealth, and financial wealth are tied together. However, the evidence also suggests that short run variations in the Swedish housing market are largely dissociated with consumer spending. Meanwhile, it is shown that the strength of the linkage between consumption and housing wealth is not sensitive to different model specifications and various measures of key variables.
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| 6. |
- Choumert, J., et al.
(författare)
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Access to water as determinant of rental values: A housing hedonic analysis in Rwanda
- 2014
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 26, s. 48-54
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we study the determinants of rental values in urban housing markets in Kigali, Rwanda. In particular, we study the value of access to piped water; due to the high costs associated with installing new piped connections, renting a property with an existing connection is often the only way for low income households to access piped water. Our results indicate that extending the piped network to a new house will in many cases raise the rental value of the house enough to pay for the cost of installing the new connection in less than two years.
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| 7. |
- Donner, Herman, et al.
(författare)
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Forced sales and their impact on real estate prices
- 2016
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Ingår i: Journal of Housing Economics. - : Elsevier. - 1051-1377 .- 1096-0791. ; 34, s. 60-68
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Tidskriftsartikel (refereegranskat)abstract
- Based on data of sold apartments and single-family houses in Stockholm, Sweden, during the period of 2006 through 2013, we find that forced sales of apartments and single-family houses cause a substantial price discount. The results of a hedonic spatial Durbin model show a negative impact on transaction price of 20.1% for foreclosed apartments and 24.6% for foreclosed single-family houses. Furthermore, the price discount increases when the number of attempted auctions is limited, which is the case for forced apartment sales owing to a lost membership in a housing association (forfeited). In those cases, the discount is as high as 29.1%.
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| 8. |
- Enström Öst, Cecilia, 1971-
(författare)
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Economic incentives, housing allowance, and housing consumption : An unintended consequence of a shift in housing policy
- 2014
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 23:March, s. 17-27
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Tidskriftsartikel (refereegranskat)abstract
- This study investigated whether an imposed dwelling size constraint in the Swedish housing allowance system induced recipients to move into smaller apartments and overcrowded conditions, i.e., an unintended consequence of a housing policy shift. To address this matter, this paper exploits a quasi-experimental dimension of the imposed dwelling size limit by applying the difference-in-difference estimator. Data for this study were extracted from the Swedish National Insurance Board’s database on housing allowance recipients, which comprises data previously unavailable for research. The estimation results suggest that this policy shift induced single-parent households living in rental housing to decrease their consumption of interior space, yielding a statistically significant increase in moves into overcrowded conditions, an effect that is even greater for single parents with one child than for those with two or more children. This effect runs directly counter to two long-term stated goals of the Swedish housing allowance system: (1) to induce households to move into better housing, thereby increasing their housing consumption, and (2) to prevent families with children from living in overcrowded conditions.
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| 9. |
- Hjalmarsson, Erik, 1975, et al.
(författare)
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Heterogeneity in households' expectations of housing prices - evidence from micro data
- 2020
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 50
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Tidskriftsartikel (refereegranskat)abstract
- Expectations about future housing prices are arguably an important determinant of actual housing prices, and an important input in decisions on whether and how to transact in the housing market. Using micro-level survey data on Swedish households, we analyse households' expectations of housing prices and how these expectations relate to the characteristics of the respondents. Results show that age is found to be significantly related to housing-price expectations, with the youngest households - whose adulthood largely corresponds to the extended period of rapid housing-price growth in Sweden - having the highest housing-price expectations. This is consistent with the hypothesis that expectations are influenced by personal experiences. Our findings suggest that aggregate measures of expectations might hide important features of the data, which could be of interest to policy makers when choosing regulatory actions or formulating macroprudential policies.
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| 10. |
- Karpestam, Peter, et al.
(författare)
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Interest-only-mortgages and housing market fluctuations in Denmark
- 2019
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Ingår i: Journal of Housing Economics. - : Elsevier. - 1051-1377 .- 1096-0791. ; 46
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Tidskriftsartikel (refereegranskat)abstract
- Low repayment rates on mortgages have probably contributed to increased macroeconomic imbalances for several countries in recent years. The objective of this paper is to analyze how the introduction of interest-only-mortgages in 2003 affected the Danish housing market. Using quarterly data between 2001 and 2013, we analyze the long- and short-run relationships between mortgage repayments and three dependent variables: real house prices; the number of property sales; and mortgage debts in relation to disposable income. We find that including mortgage repayments in nominal housing payments improves the econometric fit when predicting house prices and mortgages in relation to disposable incomes in both the long run and the short run, but not when modeling sales. Also, the conventional user cost variable either turn out insignificant or with the “wrong” (i.e. positive) sign, while nominal housing payment, including mortgage repayments, are significantly negative. However, some regression results are sensitive to specification and there are some indications of reversed causality issues. We therefore perform complementary event studies. The results of the event studies suggest that real house prices and the mortgage debt ratio increased considerably faster than otherwise expected between the introduction of interest-only-mortgages and the start of the financial crisis in 2007. Results are similar when using the results from our long- and short-run regressions to simulate the effects of introducing interest-only-mortgages. Our most conservative estimates suggest that the introduction of interest-only-mortgages raised real house prices and the mortgage debt ratio by about twenty and ten percent between 2003 and 2013, respectively. Our results raise questions of whether households base their decisions on real or nominal variables, actual costs, or cash flows, and if interest-only-mortgages have promoted housing affordability or have rather contributed to increased house prices and household debts.
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