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Rental externality, tenure security, and housing quality

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Author Info
Iwata, Shinichiro
Yamaga, Hisaki

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Abstract

This paper considers two tenure modes--owner- and renter-occupied housing--and models the effect of the rental externality and tenure security on single-family housing quality. We show that both rental externality and tenure security reduce renter-occupied housing quality when the user's utilization, which reduces the quality of the accommodation, and the owner's maintenance, which raises quality, are substitutes. Using single-family housing data in Japan, we obtain empirical results that are consistent with theoretical predictions. These results indicate that conventional wisdom--that the quality of renter-occupied housing is lower than that of owner-occupied housing--is supported for single-family housing in Japan.

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File URL: http://www.sciencedirect.com/science/article/B6WJR-4SYCPTM-1/2/08fa0944cf179dfd608bd91999fd560f
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Publisher Info
Article provided by Elsevier in its journal Journal of Housing Economics.

Volume (Year): 17 (2008)
Issue (Month): 3 (September)
Pages: 201-211
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Handle: RePEc:eee:jhouse:v:17:y:2008:i:3:p:201-211

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Web page: http://www.elsevier.com/locate/inca/622881

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Related research
Keywords: Rental externality Tenure security Housing quality;

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This page was last updated on 2009-12-30.


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