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To rent or to buy – analysis of housing tenure choice determined by housing policy

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Abstract

The article discusses the relatively large share of owner-occupied housing in the housing stock in selected European countries with relatively low per capita income and describes the underlying causes of this phenomenon. We identify the economic implications of the growing number of owner-occupied housing and poorly developed rental market. The paper analyses home purchase or rental decisions and explains the correlations between housing availability, consumption and households’ savings, as well as housing policy. The way in which the development of the rental market can affect the situation in the property market is presented on the basis of a simple model.

Suggested Citation

  • Hanna Augustyniak & Joanna Waszczuk & Krzysztof Olszewski & Jacek Łaszek, 2013. "To rent or to buy – analysis of housing tenure choice determined by housing policy," NBP Working Papers 164, Narodowy Bank Polski.
    • Handle: RePEc:nbp:nbpmis:164
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    11. Jeremy C. Stein, 1995. "Prices and Trading Volume in the Housing Market: A Model with Down-Payment Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 379-406.
    12. Dan Andrews & Aida Caldera Sánchez, 2011. "The Evolution of Homeownership Rates in Selected OECD Countries: Demographic and Public Policy Influences," OECD Journal: Economic Studies, OECD Publishing, vol. 2011(1), pages 1-37.
    13. Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski & Joanna Waszczuk, 2013. "Housing market cycles – a disequilibrium model and its application to the primary housing market in Warsaw," Chapters from NBP Conference Publications, in: Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski (ed.), Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis, 2013, chapter 11, pages 5-38, Narodowy Bank Polski.
    14. Dan Andrews & Aida Caldera Sánchez, 2011. "Drivers of Homeownership Rates in Selected OECD Countries," OECD Economics Department Working Papers 849, OECD Publishing.
    15. Hanna Augustyniak & Laszek Jacek & Krzysztof Olszewski & Joanna Waszczuk, 2013. "Modelling of cycles in the residential real estate market – interactions between the primary and the secondary market and multiplier effects," NBP Working Papers 143, Narodowy Bank Polski.
    16. Henderson, J Vernon & Ioannides, Yannis M, 1983. "A Model of Housing Tenure Choice," American Economic Review, American Economic Association, vol. 73(1), pages 98-113, March.
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    Cited by:

    1. Krzysztof Olszewski & Robert Leszczyński, 2013. "Panel analysis of home prices in the primary and secondary market in 17 largest cities in Poland," Chapters from NBP Conference Publications, in: Hanna Augustyniak & Jacek Łaszek & Krzysztof Olszewski (ed.), Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis, 2013, chapter 12, pages 39-71, Narodowy Bank Polski.
    2. Krzysztof Olszewski & Hanna Augustyniak & Jacek Laszek & Robert Leszczynski & Joanna Waszczuk, 2016. "On the dynamics of the primary housing market and the forecasting of house prices," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Combining micro and macro data for financial stability analysis, volume 41, Bank for International Settlements.
    3. Michał Rubaszek & Adam Czerniak, 2017. "Preferencje Polaków dotyczące struktury własnościowej mieszkań: opis wyników ankiety," Bank i Kredyt, Narodowy Bank Polski, vol. 48(2), pages 197-234.
    4. Elena IONASCU, 2017. "The CEE housing markets before, during and after the transition: an overview of property prices and home ownership rates," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9(3), pages 377-400, October.
    5. Marek Bryx & Janusz Sobieraj & Dominik Metelski & Izabela Rudzka, 2021. "Buying vs. Renting a Home in View of Young Adults in Poland," Land, MDPI, vol. 10(11), pages 1-31, November.

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    More about this item

    Keywords

    housing demand; home ownership; housing policy; financial regulations;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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