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The impact on rent from tenant and landlord characteristics and interaction

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  • Red Larsen, Erling
  • Sommervoll, Dag Einar

Abstract

Owner-occupied and rental housing services are often assumed to be close substitutes, and both house price and rental price indices rely on regressions based on dwelling and spatial attributes. However, while such characteristics are exhaustive in the owner's market, they cannot capture the additional complexity of rental markets. This paper offers an analysis of additional factors that affect rent, such as landlord and tenant characteristics and the landlord-tenant interaction. We examine a novel data set of the Norwegian rental market and obtain substantial improvements in explanatory power by including tenant and landlord characteristics. Additionally, we are able to shed first light on long-standing questions such as the relationship between the scale of the landlord's businesses and rent levels.

Suggested Citation

  • Red Larsen, Erling & Sommervoll, Dag Einar, 2009. "The impact on rent from tenant and landlord characteristics and interaction," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 316-322, May.
    • Handle: RePEc:eee:regeco:v:39:y:2009:i:3:p:316-322
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    Cited by:

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    2. Fagereng, Andreas & Halvorsen, Elin, 2017. "Imputing consumption from Norwegian income and wealth registry data," Journal of Economic and Social Measurement, IOS Press, issue 1, pages 67-100.
    3. Pnina O. Plaut1 & Steven E. Plaut, 2013. "Who Wants to be a Landlord? Factors that Affect the Inclination of Israeli Households to Rent out Property," International Real Estate Review, Global Social Science Institute, vol. 16(1), pages 119-133.
    4. Dean, Jason & Steele, Marion, 2022. "Income decline, financial insecurity, landlord screening and renter mobility," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    5. Morten Skak & Gintautas Bloze, 2013. "Rent Control and Misallocation," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 1988-2005, August.
    6. Goeyvaerts, Geert & Buyst, Erik, 2019. "Do market rents reflect user costs?," Journal of Housing Economics, Elsevier, vol. 44(C), pages 112-130.
    7. Tsvetan Tsvetanov & Kathleen Segerson, 2014. "The Welfare Effects of Energy Efficiency Standards When Choice Sets Matter," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(1), pages 233-271.
    8. Gavin A. Wood & Rachel Ong, 2013. "When and Why Do Landlords Retain Property Investments?," Urban Studies, Urban Studies Journal Limited, vol. 50(16), pages 3243-3261, December.
    9. Røed Larsen, Erling, 2018. "Can monetary policy revive the housing market in a crisis? Evidence from high-resolution data on Norwegian transactions," Journal of Housing Economics, Elsevier, vol. 42(C), pages 69-83.

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