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The Amsterdam rent index: The housing market and the economy, 1550–1850

Author

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  • Eichholtz, Piet
  • Straetmans, Stefan
  • Theebe, Marcel

Abstract

The paper investigates the long run historic development of the Amsterdam rental housing market (1550–1850). Using rent data on a large cross section of residential properties in Amsterdam we are able to develop an annual constant-quality rent index for the entire time period. Whereas nominal rents nearly tripled over the considered sample period, average Amsterdam house rents, in real terms, had approximately the same level in 1850 as they exhibited in 1550. Otherwise stated, nominal rents and goods prices rose at the same pace. Over these 301years, the real index moves between a minimum level of 45.6 and a maximum of 162.4. As concerns the relation between the housing market and the real economy, we find empirical evidence that fluctuations in rents and fluctuations in proxies of business cycle activity comove, both in nominal and in real terms.

Suggested Citation

  • Eichholtz, Piet & Straetmans, Stefan & Theebe, Marcel, 2012. "The Amsterdam rent index: The housing market and the economy, 1550–1850," Journal of Housing Economics, Elsevier, vol. 21(4), pages 269-282.
  • Handle: RePEc:eee:jhouse:v:21:y:2012:i:4:p:269-282
    DOI: 10.1016/j.jhe.2012.09.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Xudong An & Jeffrey D. Fisher & David Geltner, 2016. "Cash Flow Performance of Fannie Mae Multifamily Real Estate: Evidence from Repeated NOI and EGI Indices," The Journal of Real Estate Finance and Economics, Springer, vol. 52(4), pages 512-542, May.
    2. repec:oup:ereveh:v:20:y:2016:i:3:p:322-344. is not listed on IDEAS
    3. Ronan C. Lyons, 2013. "Inside a Bubble and Crash – Evidence from the Valuation of Amenities," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    4. Ambrose, Brent W. & Coulson, N. Edward & Yoshida, Jiro, 2017. "Inflation Rates Are Very Different When Housing Rents Are Accurately Measured," HIT-REFINED Working Paper Series 71, Institute of Economic Research, Hitotsubashi University.
    5. Ronan C Lyons, 2017. "Credit conditions and the housing price ratio: evidence from Ireland's bubble and crash," Trinity Economics Papers tep0717, Trinity College Dublin, Department of Economics.
    6. Dirk Brounen & Piet Eichholtz & Stefan Staetmans & Marcel Theebe, 2014. "Inflation Protection from Homeownership: Long-Run Evidence, 1814–2008," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 42(3), pages 662-689, September.
    7. repec:zbw:espost:167600 is not listed on IDEAS
    8. Gray, Rowena, 2018. "Selection bias in historical housing data," QUCEH Working Paper Series 2018-01, Queen's University Belfast, Queen's University Centre for Economic History.
    9. repec:tcd:tcduee:tep051 is not listed on IDEAS
    10. Gazzani, Andrea, 2016. "News and noise in the housing market," Working Paper Series 1933, European Central Bank.

    More about this item

    Keywords

    Rent index; Amsterdam housing market; Long term;

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • N6 - Economic History - - Manufacturing and Construction
    • N9 - Economic History - - Regional and Urban History
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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