| 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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| 11. |
- Rommel, Jens
(författare)
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Unequal Treatment in the Rental Housing Markets of Four Chinese Megacities
- 2023
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Ingår i: Journal of Housing Economics. - 1051-1377 .- 1096-0791. ; 61
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Tidskriftsartikel (refereegranskat)abstract
- Unequal treatment of tenants in housing markets can create significant economic and social costs. Yet, it has attracted limited attention outside the Western world. In an online correspondence study based on 1,167 email applications to landlords at a major Chinese real estate website, we investigate whether there is unequal treatment in rental housing markets in the four megacities Beijing, Shanghai, Guangzhou, and Shenzhen. We find that applications with Uighur-sounding names are approximately seven percentage points less likely to receive a response from landlords and 9.6 percentage points less likely to be offered a showing compared to applications with Han Chinese names. Additional information on white-collar work or a long-term residence perspective in the city does not eliminate differences in landlords’ responses to names, therewith rejecting the idea of statistical discrimination on income or residence permits. We discuss possible extensions of the experimental design and conclude that the unequal treatment of different ethnic groups may pose an important future challenge to housing market regulation in urban China.
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| 12. |
- Wilhelmsson, Mats
(författare)
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House price depreciation rates and level of maintenance
- 2008
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 17:1, s. 88-101
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Tidskriftsartikel (refereegranskat)abstract
- My objective in this paper is to estimate different depreciation rates of house prices depending on the level of maintenance of the property and the location of the property. I do this by supplementing transaction price data with owner information about level of maintenance. The result indicates that the level of maintenance has a substantial impact on the price level. Since maintenance offsets some of the physical deterioration of the property, the depreciation rate will be lowered by maintenance, ceteris paribus. To be able to estimate maintenance effects on depreciation rates, I isolated the interaction effect between the level of maintenance and the age of the property to allow for the fact that maintenance has an impact on the effective age of the property. In this study, I separate maintenance into indoor and outdoor maintenance levels (or absence of maintenance). My results show that the depreciation rates are significantly different for a maintained property and for a property that is not maintained. The price difference between a 40-year-old property (built in 1960) and maintained both indoors and outdoors and a property of the same age that is not maintained is about 13% (-10% compared to -23% in total age effect). The absence of outdoor maintenance has more impact on price depreciation rates.
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| 13. |
- Wilhelmsson, Mats
(författare)
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Household expenditure patterns for housing attributes : A linear expenditure system with hedonic prices
- 2002
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 11:1, s. 75-93
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Tidskriftsartikel (refereegranskat)abstract
- The main objective of this research is to demonstrate a new approach to how income and own-price elasticities for housing attributes can be estimated. The methodology used is a combination of the hedonic technique and a complete system of household expenditures, which relies on an additive utility function. However, here we allow the utility parameters to vary with family size. The empirical results of a case study show that family size plays a significant role when estimating the elasticities. Furthermore, the housing attributes of living area and absence of traffic noise are more income elastic than those of lot size and indoor quality. All the income elasticities are positively correlated with income and family size but negatively with down payment.
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| 14. |
- Wilhelmsson, Mats
(författare)
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What is the impact of macroprudential regulations on the Swedish housing market?
- 2022
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 57
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Tidskriftsartikel (refereegranskat)abstract
- Housing shortages and urbanization have led to higher house prices and higher levels of household debt. Sweden's Financial Supervisory Authority has introduced several borrower-based, macroprudential tools to control debt growth over the last ten years. In 2010, a mortgage loan-to-value (LTV) ratio was introduced, and in 2016, the amortization of 1 percent of the loan balance was mandated by law if a mortgage's value was higher than 50 percent of the property value. Furthermore, in 2018, the amortization requirement was tightened, as all households with a mortgage valued at larger than 4.5 times their annual income were forced to be amortized by 1 percent of the loan balance. The question is whether the Financial Supervisory Authority's macroprudential tools have exerted the intended effect. We combine a hedonic regression modeling approach with a regression discontinuity design (RDD) to estimate the causal impact on house prices. The effect of these macroprudential tools is estimated on the single-family housing market and the condominium market. We are using microdata of one million housing transactions between 2008 and 2019. Our estimates indicate that the amortization requirement in 2016 resulted in a negative impact of around 7 percent on housing prices but that a slightly lower impact resulted from the 2018 amortization requirement. The 2010 LTV ratio requirement did not impact the prices of dwellings.
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| 15. |
- Yang, Zan, et al.
(författare)
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Permanent and transitory shocks in owner-occupied housing : A common trend model of price dynamics
- 2012
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377 .- 1096-0791. ; 21:4, s. 336-346
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Tidskriftsartikel (refereegranskat)abstract
- Significant fluctuations in house prices have received considerable attention in recent years. An understanding of the forces underlying the departure from fundamental values is important in explaining the mechanisms underlying housing market performance and predicting potential house price changes in the future. This study constitutes the first use of a common trend (CT) model to analyze private house prices in the Swedish market. We employ a cointegration system to analyze the macro variables of consumption expenditure per capita, user costs and house prices. We decompose shocks into those resulting from fundamental variables, specified in this research as income and the interest rate, and those resulting from cyclical variables. The results indicate that interest rates play a dominant role in explaining house price swings, and are also significant in determining user costs for households in Sweden. Transitory shocks are found to have little explanatory power for house prices and user costs in the long run. A number of tests have been performed to verify the robustness of the specification and results.
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| 16. |
- Englund, P, et al.
(författare)
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House price dynamics: An international empirical perspective
- 1997
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Ingår i: JOURNAL OF HOUSING ECONOMICS. - : ACADEMIC PRESS INC JNL-COMP SUBSCRIPTIONS. - 1051-1377. ; 6:2, s. 119-136
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Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- The paper compares the dynamics of housing prices in 15 OECD countries. The data reveal a remarkable degree of similarity across countries and suggest rich dynamics for the first-differenced real annual house prices, with a significant structure of autoco
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| 17. |
- Gautier, P. A., et al.
(författare)
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The effect of land lease on house prices
- 2019
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377. ; 46
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Tidskriftsartikel (refereegranskat)abstract
- In Amsterdam, houses located on private land and houses with various land-lease contracts coexist. This paper estimates the market valuation of future land-lease payments on the house price. This is useful for cities (like Amsterdam) that want to offer infinite lease terms, and can be also used to estimate long-run discount rates. We investigate the impact of: (i) the number of years that the land lease has been paid in advance and (ii) the amount that must be paid up front. Depending on the specification, houses on privately owned land are, on average, 11–13% more expensive than observably equivalent houses with a (non-prepaid) land-lease contract. Each year that no land lease has to be paid increases the price of a house by approximately 0.2%. Those findings correspond to a discount rate of 4% per year. © 2019 Elsevier Inc.
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| 18. |
- Gouveia, Filipe, et al.
(författare)
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Religiosity and discrimination against same-sex couples : The case of Portugal's rental market
- 2020
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Ingår i: Journal of Housing Economics. - : Elsevier BV. - 1051-1377. ; 50, s. 1-10
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Tidskriftsartikel (refereegranskat)abstract
- We measure and analyze discriminatory behavior against same-sex couples trying to rent an apartment in Portugal and pay special attention to the role of religiosity. This is the first correspondence field experiment investigating discrimination against this minority group in Portugal, and the first one to highlight religion as a factor of importance. In our experiment, four type of applicants varying in gender (male and female) and modality (same and opposite sex) reply to Internet ads to express interest in renting an apartment in the metropolitan areas of Porto and Lisbon. All applicant couples are presented as married, stable and professional. The main finding is that male same-sex couples face significant discrimination: The probability of getting a positive reply is 7–8 percentage points, or 23–26 percent, lower for them compared to opposite-sex couples. Interestingly, this effect is decreasing in the religiosity of a parish, suggesting that the more religious, Catholic and religiously homogenous people residing there are (with certain qualifications), the less discrimination of male same-sex couples there is. Further results reveal that discrimination is stronger when the population is older and when the rent and the square-meter price of apartments are higher. The present study extends the literature to a southern European, Catholic setting, validates previous research documenting worse treatment of same-sex couples in the housing market and demonstrates a mitigating effect of religiosity under certain conditions.
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| 19. |
- Hort, K
(författare)
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The determinants of urban house price fluctuations in Sweden 1968-1994
- 1998
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Ingår i: JOURNAL OF HOUSING ECONOMICS. - : ACADEMIC PRESS INC. - 1051-1377. ; 7:2, s. 93-120
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Tidskriftsartikel (refereegranskat)abstract
- A restricted error-correction model of real house price changes is estimated on Swedish panel data. In the long-run equation, movements in income, user costs, and construction costs were found to have a significant impact on real house prices. The estimat
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| 20. |
- Åsberg, Per
(författare)
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Housing decisions of young Swedish adults
- 1999
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Ingår i: JOURNAL OF HOUSING ECONOMICS. - : ACADEMIC PRESS INC. - 1051-1377. ; 8:2, s. 116-143
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Tidskriftsartikel (refereegranskat)abstract
- Pooled and longitudinal data for the years 1989 and 1992 were used to study the housing decisions of young Swedish adults before and after the 1991 Swedish tax reform. Although the household formation and tenure choice decisions of young adults were found
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