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Search Costs and Apartment Rents

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  • Benjamin, John D
  • Lusht, Kenneth M
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    Abstract

    Differences in apartment rents are explained with a hedonic equation that includes property management variables omitted in prior studies. Our joint hypotheses are that differences in contributions to rent exist among property managers as a function of their ability to reduce search costs to renters and that the manager's fee for providing search-cost-reducing information is reflected in the amount of rent paid. Two proxies for the level of search costs are found to be positively and significantly related to the rent level. Copyright 1993 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Real Estate Finance & Economics.

    Volume (Year): 6 (1993)
    Issue (Month): 2 (March)
    Pages: 189-97

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    Handle: RePEc:kap:jrefec:v:6:y:1993:i:2:p:189-97

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    Web page: http://www.springerlink.com/link.asp?id=102945

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    Cited by:
    1. John D. Benjamin & G. Stacy Sirmans, 1996. "Mass Transportation, Apartment Rent and Property Values," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 1-8.
    2. John D. Benjamin & G. Stacy Sirmans & Emily Norman Zietz, 1997. "Security Measures and the Apartment Market," Journal of Real Estate Research, American Real Estate Society, vol. 14(3), pages 347-358.
    3. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    4. Douglas S. Bible & Cheng-Ho Hsieh, 1996. "Applications of Geographic Information Systems for the Analysis of Apartment Rents," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 79-88.
    5. G. Donald Jud & John D. Benjamin & G. Stacy Sirmans, 1996. "What Do We Know about Apartments and Their Markets?," Journal of Real Estate Research, American Real Estate Society, vol. 11(3), pages 243-258.

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