Search to Rent or Search to Own: Housing Market Churn in the Cross Section of Cities
Abstract/Contents
- Abstract
- This paper measures structural vacancies in housing markets with tenure choice. We first document that (i) inventory for rent and for sale are strongly correlated across US metro areas and (ii) months supply (inventory relative to monthly volume), is always larger in rental markets: a renter is faster to find then a buyer. We propose a search model with developers who choose between selling houses, which yields higher surplus, or renting them out, which allows for faster matching. The estimated model accounts for the facts and allows us to infer structural vacancies from the behavior of inventory and volume. Structural vacancies in rental markets are negative in many cities even while they are positive in owner occupier markets.
Description
| Type of resource | text |
|---|---|
| Date created | September 10, 2021 |
Creators/Contributors
| Author | Abramson, Boaz |
|---|---|
| Author | Landvoigt, Tim |
| Author | Piazzesi, Monika |
| Author | Schneider, Martin |
| Organizer of meeting | Diamond, Rebecca |
| Organizer of meeting | van Dijk, Winnie |
| Organizer of meeting | Schneider, Martin |
| Organizer of meeting | Tsivanidis, Nick |
Subjects
| Subject | economics |
|---|---|
| Genre | Text |
| Genre | Presentation slides |
Bibliographic information
Access conditions
- Use and reproduction
- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).
Preferred citation
- Preferred citation
- Abramson, B., Landvoigt, T., Piazzesi, M., and Schneider, M. (2022). Search to Rent or Search to Own: Housing Market Churn in the Cross Section of Cities. Stanford Digital Repository. Available at https://purl.stanford.edu/pd540hs7174
Collection
SITE Conference 2021
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- Contact
- siteworkshop@stanford.edu
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