IDEAS home Printed from
   My bibliography  Save this article

Measuring Local Individual Housing Returns from a Large Transaction Database


  • Stéphane Gregoir
  • Mathieu Hutin
  • Tristan-Pierre Maury
  • Genevièvre Prandi


Housing returns are an important element in households' housing tenure choices (buy/rent) and investors' portfolio compositions. Usually in the absence of individual data, practitioners resort to the ratio of the average of rents to transaction prices over large areas to proxy these returns, but this measure may not capture the different responses to shocks of each variable varying with the heterogenous characteristics of the dwellings, and it does not take into account the vacancy risk for the investors. Working with a panel of 40,000 rented flats or houses surveyed on a yearly basis by the OLAP and with the database of the registration by notaries of all the housing transactions between 1996 and 2007 in the greater Paris area, we develop econometric models of prices, rents, occupation, and vacancy spells, and develop statistical procedures to produce local measures of rental returns, capital gains, and the associated risks depending on physical characteristics. This allows us to illustrate a significant and persistent heterogeneity in rental returns and the impact of vacancy depending on the type of dwellings. Areas with initial high rental returns seem to experience higher capital gains which negatively impact the rental returns afterwards. Finally, the variance of returns varies with location and these differences are persistent. All these features should be taken into account when investing in housing.

Suggested Citation

  • Stéphane Gregoir & Mathieu Hutin & Tristan-Pierre Maury & Genevièvre Prandi, 2012. "Measuring Local Individual Housing Returns from a Large Transaction Database," Annals of Economics and Statistics, GENES, issue 107-108, pages 93-131.
  • Handle: RePEc:adr:anecst:y:2012:i:107-108:p:93-131

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Charlene Kalenkoski & David Ribar & Leslie Stratton, 2007. "The effect of family structure on parents’ child care time in the United States and the United Kingdom," Review of Economics of the Household, Springer, vol. 5(4), pages 353-384, December.
    2. Jean Kimmel & Rachel Connelly, 2007. "Mothers’ Time Choices: Caregiving, Leisure, Home Production, and Paid Work," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    3. Jay Stewart, 2010. "The Timing of Maternal Work and Time with Children," ILR Review, Cornell University, ILR School, vol. 64(1), pages 181-200, October.
    4. Rachel Connelly & Jean Kimmel, 2009. "Spousal influences on parents’ non-market time choices," Review of Economics of the Household, Springer, vol. 7(4), pages 361-394, December.
    5. Victoria Vernon, 2010. "Marriage: for love, for money…and for time?," Review of Economics of the Household, Springer, vol. 8(4), pages 433-457, December.
    6. Daniel S. Hamermesh, 2007. "Time to Eat: Household Production under Increasing Income Inequality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 852-863.
    7. Nancy Folbre & Jayoung Yoon, 2007. "What is child care? Lessons from time-use surveys of major English-speaking countries," Review of Economics of the Household, Springer, vol. 5(3), pages 223-248, September.
    8. Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time Over Five Decades," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 969-1006.
    9. Hamermesh, Daniel S., 2008. "Direct estimates of household production," Economics Letters, Elsevier, vol. 98(1), pages 31-34, January.
    10. Stewart, Jay, 2013. "Tobit or not Tobit?," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 263-290.
    11. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 3-22, January.
    12. George Davis & Wen You, 2010. "The time cost of food at home: general and food stamp participant profiles," Applied Economics, Taylor & Francis Journals, vol. 42(20), pages 2537-2552.
    13. Jonathan Guryan & Erik Hurst & Melissa Kearney, 2008. "Parental Education and Parental Time with Children," Journal of Economic Perspectives, American Economic Association, vol. 22(3), pages 23-46, Summer.
    14. Marie Connolly, 2008. "Here Comes the Rain Again: Weather and the Intertemporal Substitution of Leisure," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 73-100.
    15. Mark Aguiar & Erik Hurst, 2007. "Life-Cycle Prices and Production," American Economic Review, American Economic Association, vol. 97(5), pages 1533-1559, December.
    16. Bruce D. Meyer & James X. Sullivan, 2008. "Changes in the Consumption, Income, and Well-Being of Single Mother Headed Families," American Economic Review, American Economic Association, vol. 98(5), pages 2221-2241, December.
    17. Daniel S. Hamermesh & Caitlin Knowles Myers & Mark L. Pocock, 2008. "Cues for Timing and Coordination: Latitude, Letterman, and Longitude," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 223-246, April.
    18. Joni Hersch, 2009. "Home production and wages: evidence from the American Time Use Survey," Review of Economics of the Household, Springer, vol. 7(2), pages 159-178, June.
    19. Joseph Price, 2008. "Parent-Child Quality Time: Does Birth Order Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Edward L. Glaeser & Scott Duke Kominers & Michael Luca & Nikhil Naik, 2015. "Big Data and Big Cities: The Promises and Limitations of Improved Measures of Urban Life," NBER Working Papers 21778, National Bureau of Economic Research, Inc.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2012:i:107-108:p:93-131. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurent Linnemer). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.