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Rent or Ownership? An Urban Tenure Choice Model
Journal Title: SCIENZE REGIONALI  
Author/s: Marina Bravi, Sergio Giaccaria, Antonio Talarico 
Year:  2010 Issue: Language: Italian 
Pages:  24 Pg. 47-70 FullText PDF:  367 KB
DOI:  10.3280/SCRE2010-002003
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Empirical studies show evidences that tenure choice and households mobility decisions are highly correlated. This work refers on the results of an empirical analysis, at the urban level, by a sample of movers (renters and homeowners). The main goal is to test if homeownership is systematically preferred to renting and if the housing affordability effect can be estimated by a random utility model. Results point out how the reduction to the access to homeownership is also related to excessively burdening rent levels. The movers utility function is employed to estimate rent levels that simulate a baseline condition of optimal access to homeownership. The divergence between actual and simulated rents is conclusively shown as an evidence of affordability disease.
Keywords: Housing affordability, urban mobility, tenure choice models.
Jel Code: C35, R21, R23

Marina Bravi, Sergio Giaccaria, Antonio Talarico, Rent or Ownership? An Urban Tenure Choice Model in "SCIENZE REGIONALI " 2/2010, pp. 47-70, DOI:10.3280/SCRE2010-002003

   

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