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A Hedonic Analysis of Rent and Rental Revenue in the Subsidised and Unsubsidised Housing Sectors in Geneva

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  • Sandra Buchel

    (Swiss Bank Corporation, Swiss Bank Centre, Europastrasse 1, CH-8152 Zürich-Opfikou, Switzerland)

  • Martin Hoesli

    (Universite de Genève, Section HEC, Uni-Mail, 102 boulevard Carl-Vogt, CH-1211, Genève 4, Switzerland)

Abstract

In this paper, an analysis is made of what would be the rent difference for the tenants of subsidised units if these units were rented as unsubsidised units. Furthermore, the existence of any pecuniary disadvantage for the owner of a subsidised unit is investigated by considering his rental revenue (i.e. the amount paid by the tenant and the subsidy). It is found that there exists a premium between an unsubsidised and a subsidised unit when using the amount paid by the tenant (i.e. the rent) as the dependent variable. Also, the subsidy system in Geneva has an influence on the pricing of each characteristic of a unit. Furthermore, it is found that when using rental revenue as the dependent variable, both sub-samples can be used in a single hedonic equation. Thus, owners of subsidised units are not at a disadvantage due to the granting of a subsidy. As a result, Geneva's subsidy system matches the goals of agents on both the demand and supply sides.

Suggested Citation

  • Sandra Buchel & Martin Hoesli, 1995. "A Hedonic Analysis of Rent and Rental Revenue in the Subsidised and Unsubsidised Housing Sectors in Geneva," Urban Studies, Urban Studies Journal Limited, vol. 32(7), pages 1199-1213, August.
    • Handle: RePEc:sae:urbstu:v:32:y:1995:i:7:p:1199-1213
    DOI: 10.1080/00420989550012645
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    References listed on IDEAS

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    Cited by:

    1. Emmanuel K. Gavu, 2019. "Empirical Conceptualisation Of Residential Rental Values In Ghana – Understanding Location And Neighbourhood Effects," AfRES 2019-052, African Real Estate Society (AfRES).
    2. Konstantin A. Kholodilin, 2016. "War, housing rents, and free market: Berlin's rental housing during World War I," European Review of Economic History, European Historical Economics Society, vol. 20(3), pages 322-344.
    3. Allan Din & Martin Hoesli & Andre Bender, 2001. "Environmental Variables and Real Estate Prices," Urban Studies, Urban Studies Journal Limited, vol. 38(11), pages 1989-2000, October.
    4. Weiß, Dominik, 2010. "Kompensieren Mietpreisunterschiede ungleichwertige Lebensverhältnisse?," Arbeitsmaterial der ARL: Aufsätze, in: Rosenfeld, Martin T. W. & Weiß, Dominik (ed.), Gleichwertigkeit der Lebensverhältnisse zwischen Politik und Marktmechanismus: Empirische Befunde aus den Ländern Sachsen, Sachsen-Anhalt und Thüringe, volume 127, pages 71-95, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    5. Martin Hoesli & Bernard Thion & Craig Watkins, 1997. "A hedonic investigation of the rental value of apartments in central Bordeaux," Journal of Property Research, Taylor & Francis Journals, vol. 14(1), pages 15-26, January.

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