Estimating the Vulnerability of Households to Rent Increases

Ge, XJ; Shilling, JD; Lee, JM

Estimating the Vulnerability of Households to Rent Increases

Ge, XJ Shilling, JD Lee, JM

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Publisher:: AREUEA-ASSA 2021
Publication Type:: Conference Proceeding
Citation:: Proceedings of 2021 ASSA-AREUEA conference, 2021
Issue Date:: 2021-01-03

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Field	Value	Language
dc.contributor.author	Ge, XJ
dc.contributor.author	Shilling, JD
dc.contributor.author	Lee, JM
dc.contributor.editor	Van Nieuwerburgh, S
dc.date	2021-01-03
dc.date.accessioned	2020-05-25T07:06:25Z
dc.date.available	2020-05-14
dc.date.available	2020-05-25T07:06:25Z
dc.date.issued	2021-01-03
dc.identifier.citation	Proceedings of 2021 ASSA-AREUEA conference, 2021
dc.identifier.uri	http://hdl.handle.net/10453/140928
dc.description.abstract	The question investigated in this paper is how vulnerable are US households today to the risk of rent increases. The short answer is that US households are, on average, more vulnerable to the risk of rent increases in 2018 than they were throughout the 1970s, 1980s, 1990s, and 2000s (and in heavily regulated markets even more vulnerable than they were in the 1940s and 1950s). To measure vulnerability requires a normative framework. We follow the approach developed by Sinai and Souleles (2005). We find that the rent premium that would leave households indifferent between the discounted cost of renting and its expected value is greater today, on average, than it was over the past fifty years (and in heavily regulated markets greater than it was over the past eighty years). There is therefore a clear public policy implication from this research.
dc.language	en
dc.publisher	AREUEA-ASSA 2021
dc.relation.ispartof	Proceedings of 2021 ASSA-AREUEA conference
dc.relation.ispartof	2021 ASSA-AREUEA conference
dc.rights	info:eu-repo/semantics/restrictedAccess
dc.title	Estimating the Vulnerability of Households to Rent Increases
dc.type	Conference Proceeding
utslib.location.activity	Chicago
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
pubs.consider-herdc	false
dc.date.updated	2020-05-25T07:06:19Z
pubs.finish-date	2021-01-05
pubs.place-of-publication	Chicago
pubs.start-date	2021-01-03
dc.location	Chicago

Abstract:

The question investigated in this paper is how vulnerable are US households today to the risk of rent increases. The short answer is that US households are, on average, more vulnerable to the risk of rent increases in 2018 than they were throughout the 1970s, 1980s, 1990s, and 2000s (and in heavily regulated markets even more vulnerable than they were in the 1940s and 1950s). To measure vulnerability requires a normative framework. We follow the approach developed by Sinai and Souleles (2005). We find that the rent premium that would leave households indifferent between the discounted cost of renting and its expected value is greater today, on average, than it was over the past fifty years (and in heavily regulated markets greater than it was over the past eighty years). There is therefore a clear public policy implication from this research.

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http://hdl.handle.net/10453/140928