Rent or Ownership? An Urban Tenure Choice Model
Journal title SCIENZE REGIONALI
Author/s Marina Bravi, Sergio Giaccaria, Antonio Talarico
Publishing Year 2010 Issue 2010/2 Language Italian
Pages 24 P. 47-70 File size 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 codes: C35, R21, R23
Marina Bravi, Sergio Giaccaria, Antonio Talarico, Affitto o proprietà? Un modello di scelta residenziale urbana in "SCIENZE REGIONALI " 2/2010, pp 47-70, DOI: 10.3280/SCRE2010-002003