Job Accessibility Effects on Apartment Rentals
||Cheng, Yu-Chun; Jen-Jia Lin
||Job Accessibility Effects on Apartment Rentals
||21st Annual European Real Estate Society Conference in Bucharest, Romania
||The previous studies applied the transaction price to explore the relationship between job accessibility and housing cost and concluded that transaction price and job accessibility are positively correlated. After The Financial Tsunami in 2008, investors turned their capital to more stable investment targets, which include real estate markets, and have resulted in elevated property prices worldwide in recent years. Consequently, house rentals have been getting more important while have not been well explored before. To fill the research gap, this study empirically investigates the job accessibility effects on apartment rentals using sample data in Taipei, Taiwan.This study examines the effects of job accessibility on apartment rentals for different markets, which include building types, and apartment types, and for different transportation modes. There are five hypotheses examined in this study: H1: job accessibility positively affects apartment rentals; H2: the effects of job accessibility on apartment rentals are different among various transportation modes; H3: the effects of job accessibility on apartment rentals are different among various building types; H4: the effects of job accessibility on apartment rentals are different among various property types; and, H5: the effects of job accessibility on apartment rentals are different among various rentals. To examine the hypothesis, this study employs a gravity-type job accessibility index and uses 9,157 observations in Taipei metropolitan area in 2009 as the study sample. The linear regression and quantile regression are both used to analyze the sample data.The results show that job accessibility is positively associated with apartment rentals. And, different building types and property types have different effects of job accessibility on apartment rentals. Also, different accessibility of transportation modes have different effects on apartment rentals. Furthermore, the accessibility effects on low rentals are significantly larger than that on high rentals.The empirical findings of this study make two important contributions to the literatures. First, this study presents new evidence regarding the effects of job accessibility on apartment rentals. Previous studies focused on transaction prices instead of rentals. Second, the findings of the present study provide a reference for governments in developing housing strategies using land-use and transportation measures.
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||D : Housing Markets & Economics
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