Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324656 
Year of Publication: 
2025
Series/Report no.: 
Kiel Working Paper No. 2297
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
We examine how rising energy costs affect rental housing markets and inequality. Using listing data for the 30 largest German cities from 2015-2024, we find that higher energy prices are passed through to net rents in high-rent segments, where inefficient properties see significant rent reductions, but not in lower-priced segments. This asymmetry reflects tighter markets and lower demand elasticity in the affordable segment. Consequently, low-income households face much larger increases in total housing costs. Our results show how segmented housing markets can amplify inequality when energy prices rise, highlighting important distributional implications for climate policy.
Subjects: 
Housing Markets
Energy Prices
Climate Change
Inequality
JEL: 
R31
Q41
Q54
D31
Document Type: 
Working Paper

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