Households' Willingness to Pay and Matching in Regulated Housing Markets
||van Ommeren, Jos N.; Arno van der Vlist
||Households' Willingness to Pay and Matching in Regulated Housing Markets
||20th Annual European Real Estate Society Conference in Vienna, Austria
||We introduce a methodology to estimate the households' marginal willingness to pay for housing characteristics in regulated housing markets, where houses and households are matched using queueing time. For the Amsterdam Metropolitan area, the households' marginal willingness to pay for the market value of public housing, so the value when sold in the private market, is estimated. We find that the annual marginal willingness to pay for the market value is close to the annual capitalisation rate applicable to investments in housing. We provide evidence of random, and therefore inefficient, matching between households and public houses with long queueing times.
||Nonmarket allocation mechanism, Public housing, Queueing time model, Choice-based allocation, Rent control
Post discussion ...
||D-1: Housing Markets & Economics
These pages are best viewed with any standards compliant browser (e.g. Mozilla).