IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxviiiy2025i2p541-551.html
   My bibliography  Save this article

Short- and Long-Term Economic Cycles in the Renter-Occupied Housing Market: A Conceptual Framework

Author

Listed:
  • Arkadiusz Jan Derkacz

Abstract

Purpose: The main objective of the study is to diagnose and describe economic cycles in the renter-occupied housing (ROH) market. Design/Methodology/Approach: The research is based on the classic DiPasquale-Wheaton model, adapted to the specific characteristics of this housing rental market. The model distinguishes between two key components: the housing asset market and the rental space market. The former is controlled by owner-investors, and the latter by renter-users. Findings: The paper describes the most important market interdependencies. However, the most important findings relate to economic cycles. The use of the ROH market model made it possible to diagnose and describe these cycles in both the short and long term. Practical implications: The findings may be useful for further research and analysis of the housing rental market. The general framework of the model presented can also serve as a basis for understanding the detailed relationships and mechanisms operating in this market. Originality/value: It can be concluded that the described ROH market model is provides a new approach to analysing the residential property market. It is a concept that clearly accentuates the specificity of the housing rental market and emphasises its distinctive characteristics.

Suggested Citation

  • Arkadiusz Jan Derkacz, 2025. "Short- and Long-Term Economic Cycles in the Renter-Occupied Housing Market: A Conceptual Framework," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 541-551.
    • Handle: RePEc:ers:journl:v:xxviii:y:2025:i:2:p:541-551
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/3995/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Theofanis Petropoulos & Konstantinos Liapis & Eleftherios Thalassinos, 2023. "Optimal Structure of Real Estate Portfolio Using EVA: A Stochastic Markowitz Model Using Data from Greek Real Estate Market," Risks, MDPI, vol. 11(2), pages 1-19, February.
    2. Insoo Baek & Sanghyo Lee & Joosung Lee & Jaejun Kim, 2021. "Analysis of Housing Market Dynamics Considering the Structural Characteristics of Mortgage Interest," Sustainability, MDPI, vol. 13(19), pages 1-15, September.
    3. Justin Kadi & Cody Hochstenbach & Christian Lennartz, 2020. "Multiple property ownership in times of late homeownership: a new conceptual vocabulary," European Journal of Housing Policy, Taylor and Francis Journals, vol. 20(1), pages 6-24, January.
    4. Borgersen Trond-Arne & King Roswitha M., 2024. "Transition and Integration Effects in the Baltic Housing Markets: The Dipasquale-Wheaton Approach," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 12(1), pages 285-306.
    5. Denise DiPasquale & William C. Wheaton, 1992. "The Markets for Real Estate Assets and Space: A Conceptual Framework," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(2), pages 181-198, June.
    6. Marjorie Flavin & Takashi Yamashita, 2002. "Owner-Occupied Housing and the Composition of the Household Portfolio," American Economic Review, American Economic Association, vol. 92(1), pages 345-362, March.
    7. Justin Kadi & Cody Hochstenbach & Christian Lennartz, 2020. "Multiple property ownership in times of late homeownership: a new conceptual vocabulary," International Journal of Housing Policy, Taylor & Francis Journals, vol. 20(1), pages 6-24, January.
    8. Hirota, Shinichi & Suzuki-Löffelholz, Kumi & Udagawa, Daisuke, 2020. "Does owners’ purchase price affect rent offered? Experimental evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    9. Soonwoo Jang & Seungwoo Shin & Hana Yim, 2020. "Factors That Affect Listed Real Estate Investment Trust Market Capitalization: A Country Level Analysis," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 26(1), pages 1-8, October.
    10. Marilena Mironiuc & Elena Ionașcu & Maria Carmen Huian & Alina Țaran, 2021. "Reflecting the Sustainability Dimensions on the Residential Real Estate Prices," Sustainability, MDPI, vol. 13(5), pages 1-28, March.
    11. Richard Barras, 2005. "A Building Cycle Model for an Imperfect World," Journal of Property Research, Taylor & Francis Journals, vol. 22(2-3), pages 63-96, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dieci, Roberto & Westerhoff, Frank, 2016. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear economic dynamics approach," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 21-44.
    2. Antoine Peris & Laure Casanova Enault, 2024. "Proximity or opportunity? Spatial and market determinants of private individuals’ buy-to-let investments," Environment and Planning B, , vol. 51(7), pages 1478-1495, September.
    3. Antoine Paccoud & Markus Hesse & Tom Becker & Magdalena Górczyńska, 2022. "Land and the housing affordability crisis: landowner and developer strategies in Luxembourg’s facilitative planning context," Housing Studies, Taylor & Francis Journals, vol. 37(10), pages 1782-1799, October.
    4. Dieci, Roberto & Westerhoff, Frank, 2015. "Heterogeneous expectations, boom-bust housing cycles, and supply conditions: A nonlinear dynamics approach," BERG Working Paper Series 99, Bamberg University, Bamberg Economic Research Group.
    5. Cody Hochstenbach & Richard Ronald, 2020. "The unlikely revival of private renting in Amsterdam: Re-regulating a regulated housing market," Environment and Planning A, , vol. 52(8), pages 1622-1642, November.
    6. Mitchell, Olivia S. & Piggott, John, 2004. "Unlocking housing equity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 18(4), pages 466-505, December.
    7. Antonia Diaz & Maria Jose Luengo Prado, 2008. "On the User Cost and Homeownership," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(3), pages 584-613, July.
    8. Aydilek, Asiye, 2016. "The allocation of time and puzzling profiles of the elderly," Economic Modelling, Elsevier, vol. 53(C), pages 515-526.
    9. In Ho Song, 2013. "House Prices and Monetary Policy: Focus on The Elasticity of Intra-Temporal Substitution between Housing and Consumption," 2013 Meeting Papers 747, Society for Economic Dynamics.
    10. Costa-Font, Joan & Vilaplana-Prieto, Cristina, 2022. "Health shocks and housing downsizing: How persistent is ‘ageing in place’?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 490-508.
    11. Laurent E. Calvet & Paolo Sodini, 2014. "Twin Picks: Disentangling the Determinants of Risk-Taking in Household Portfolios," Journal of Finance, American Finance Association, vol. 69(2), pages 867-906, April.
    12. Huang, Xiaowei & Cheng, Ge & Zhang, Man, 2025. "Climate change risk and real estate prices—Micro evidence from coastal cities in China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    13. Pelizzon, Loriana & Weber, Guglielmo, 2009. "Efficient portfolios when housing needs change over the life cycle," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2110-2121, November.
    14. William M. Doerner & William G. Doerner, 2011. "Collective Bargaining and Job Benefits in Florida Municipal Police Agencies, 2000-2009," Working Papers wp2011_01_02, Department of Economics, Florida State University, revised Oct 2012.
    15. Philippe Bracke & Christian Hilber & Olmo Silva, 2014. "Homeownership and Entrepreneurship: The Role of Mortgage Debt and Commitment," CESifo Working Paper Series 5048, CESifo.
    16. Cobb-Clark, Deborah A. & Sinning, Mathias G., 2011. "Neighborhood diversity and the appreciation of native- and immigrant-owned homes," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 214-226, May.
    17. Mavropoulos, Antonios & Xiong, Qizhou, 2019. "Housing consumption and macroprudential policies in Europe: An ex ante evaluation," IWH Discussion Papers 17/2018, Halle Institute for Economic Research (IWH), revised 2019.
    18. Laurent E. Calvet & John Y. Campbell & Paolo Sodini, 2007. "Down or Out: Assessing the Welfare Costs of Household Investment Mistakes," Journal of Political Economy, University of Chicago Press, vol. 115(5), pages 707-747, October.
    19. Raj Chetty & László Sándor & Adam Szeidl, 2017. "The Effect of Housing on Portfolio Choice," Journal of Finance, American Finance Association, vol. 72(3), pages 1171-1212, June.
    20. James Banks & Richard Blundell & Zoë Oldfield & James P. Smith, 2016. "House Price Volatility and the Housing Ladder," NBER Chapters, in: Insights in the Economics of Aging, pages 87-119, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    Statistics

    Access and download statistics

    Corrections

    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:ers:journl:v:xxviii:y:2025:i:2:p:541-551. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.