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Paper eres2016_189:
The House Price-Vacancy Curve

id eres2016_189
authors Lerbs, Oliver; Markus Teske
year 2016
title The House Price-Vacancy Curve
source 23rd Annual European Real Estate Society Conference in Regensburg, Germany
summary Individual selling prices and vacancy rates in the housing market rendera close analogy to the „wage curve“, a popular concept in labor economicsthat describes how individual wages decrease with higher local unemployment.While housing search and matching models strongly suggest a stable inverse relationship, there is still a lack of convincing empirical research onthe sensitivity of house prices to local vacancy variation. Based on almost8,000 single-family home transactions and controlling for a broad range ofproperty- and neighborhood-level characteristics in hedonic regressions, thispaper confirms a robust negative link between individual home prices andresidential vacancies. The economic size of the relationship is very similaracross the three analyzed states: a doubling of the vacancy rate at the municipality level is associated with an 8-12% discount in selling prices, yielding evidence of a „house price-vacancy curve“.
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
ratings
session Residential Real Estate
last changed 2017/11/18 16:16
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