House Prices and Rents: Socio-Economic Impacts and Prospects
AbstractWe use New Zealand property data at the area unit (suburb) level to examine implied prospects for communities over time, and test whether these derived prospects have explanatory power relating to actual future outcomes. We also use the data to analyse whether disadvantaged communities face particular problems in relation to rental markets. Our results indicate that: capital gains and rental growth expectations historically have appeared reasonable in that they have not been suggestive of asset bubbles or other fad behaviour; derived capital gains and rental growth expectations have explanatory power both over actual future capital gains and actual future rental growth; and lower socio-economic areas face higher rental yields even after controlling for non-socio-economic factors than do high socio-economic areas.
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Bibliographic InfoPaper provided by Motu Economic and Public Policy Research in its series Working Papers with number 07_01.
Length: 34 pages
Date of creation: Mar 2007
Date of revision:
House prices; house rents; rental yields; capital gains; community prospects;
Find related papers by JEL classification:
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-09 (All new papers)
- NEP-GEO-2007-04-09 (Economic Geography)
- NEP-URE-2007-04-09 (Urban & Real Estate Economics)
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