Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241880 
Year of Publication: 
2020
Series/Report no.: 
cemmap working paper No. CWP5/20
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in the rental and owner-occupied markets? And what can the answers to the previous questions tell us about economic theories of homeownership? Using the English Housing Survey, we estimate a selection model of the allocation of properties to the owner-occupied and rental sectors. Structural characteristics and unobserved quality are important for selection. Location is not. Accounting for selection is important for estimates of rent-to-price ratios and can explain some puzzling correlations between rent-to-price ratios and homeownership rates. These patterns are consistent with, among others, hypotheses of contracting frictions in the rental market likely related to housing maintenance.
Subjects: 
Homeownership
Rents
Housing Supply
Selection
JEL: 
C31
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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