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Rental externality, tenure security, and housing quality


  • Iwata, Shinichiro
  • Yamaga, Hisaki


This paper considers two tenure modes--owner- and renter-occupied housing--and models the effect of the rental externality and tenure security on single-family housing quality. We show that both rental externality and tenure security reduce renter-occupied housing quality when the user's utilization, which reduces the quality of the accommodation, and the owner's maintenance, which raises quality, are substitutes. Using single-family housing data in Japan, we obtain empirical results that are consistent with theoretical predictions. These results indicate that conventional wisdom--that the quality of renter-occupied housing is lower than that of owner-occupied housing--is supported for single-family housing in Japan.

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  • Iwata, Shinichiro & Yamaga, Hisaki, 2008. "Rental externality, tenure security, and housing quality," Journal of Housing Economics, Elsevier, vol. 17(3), pages 201-211, September.
  • Handle: RePEc:eee:jhouse:v:17:y:2008:i:3:p:201-211

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    References listed on IDEAS

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    3. Geoffrey Turnbull & Velma Zahirovic-Herbert, 2012. "The Transitory and Legacy Effects of the Rental Externality on House Price and Liquidity," The Journal of Real Estate Finance and Economics, Springer, vol. 44(3), pages 275-297, April.
    4. Elizabeth Fussell & Elizabeth Harris, 2014. "Homeownership and Housing Displacement After Hurricane Katrina Among Low-Income African-American Mothers in New Orleans," Social Science Quarterly, Southwestern Social Science Association, vol. 95(4), pages 1086-1100, December.
    5. Garner, Thesia I. & Short, Kathleen, 2009. "Accounting for owner-occupied dwelling services: Aggregates and distributions," Journal of Housing Economics, Elsevier, vol. 18(3), pages 233-248, September.
    6. Konstantin A Kholodilin & Andreas Mense & Claus Michelsen, 2017. "The market value of energy efficiency in buildings and the mode of tenure," Urban Studies, Urban Studies Journal Limited, vol. 54(14), pages 3218-3238, November.
    7. Fusco, Alessio, 2015. "The relationship between income and housing deprivation: A longitudinal analysis," Economic Modelling, Elsevier, vol. 49(C), pages 137-143.
    8. Michelsen, Claus & Rosenschon, Sebastian & Schulz, Christian, 2015. "Small might be beautiful, but bigger performs better: Scale economies in “green” refurbishments of apartment housing," Energy Economics, Elsevier, vol. 50(C), pages 240-250.
    9. Michelle Norris & Nessa Winston, 2012. "GINI DP 42: Home-Ownership, Housing Regimes and Income Inequalities in Western Europe," GINI Discussion Papers 42, AIAS, Amsterdam Institute for Advanced Labour Studies.
    10. Zumbro, Timo, 2011. "The relationship between homeownership and life satisfaction in Germany," CAWM Discussion Papers 44, University of Münster, Center of Applied Economic Research Münster (CAWM).
    11. Nessa Winston, 2015. "Multifamily Housing and Resident Life Satisfaction: Evidence from the European Social Survey," Working Papers 201515, Geary Institute, University College Dublin.
    12. Michelle Norris & Nessa Winston, 2012. "GINI DP 41: Home Ownership and Income Inequalities in Western Europe: Access, Affordability and Quality," GINI Discussion Papers 41, AIAS, Amsterdam Institute for Advanced Labour Studies.
    13. Fuerst, Franz & McAllister, Pat & Nanda, Anupam & Wyatt, Pete, 2016. "Energy performance ratings and house prices in Wales: An empirical study," Energy Policy, Elsevier, vol. 92(C), pages 20-33.
    14. Bruno Chiarini & Antonella D'Agostino & Elisabetta Marzano & Andrea Regoli, 2017. "Housing Environmental Risk in Urban Areas: Cross Country Comparison and Policy Implications," CESifo Working Paper Series 6822, CESifo Group Munich.
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    16. Ignacio Navarro & Geoffrey Turnbull, 2014. "Property Rights and Urban Development: Initial Title Quality Matters Even When it No Longer Matters," The Journal of Real Estate Finance and Economics, Springer, vol. 49(1), pages 1-22, July.


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