IDEAS home Printed from https://ideas.repec.org/a/ire/issued/v14n022011p159-183.html
   My bibliography  Save this article

On the Turnaround of Vacancy Stocks: The Stock Flow Model for the German Residential Rental Market

Author

Listed:
  • Oliver Bischoff

    () (Department of Economics, University of Hamburg, Von-Melle-Park 5, 20146 Hamburg, Germany)

Abstract

We apply the stock flow model for the German residential rental market using a data set that includes the overwhelming majority of nomenclature of territorial units for statistics (NUTS) 3 regions for the 2004-2007 period. Aside from proving conditional rental price convergence, we have detected a turnaround in vacancy stocks between the short and the long term. While East German counties and West German independent cities currently exhibit the highest and lowest vacancy rates, respectively, the opposite holds true at equilibrium. Leaning on theoretical suggestions, landlords in well-developed areas have incentives to hold onto vacancies in view of future rent increases. Our results support this idea, which demonstrates the significantly positive impact of household income and net birth rate on the natural vacancy rate.

Suggested Citation

  • Oliver Bischoff, 2011. "On the Turnaround of Vacancy Stocks: The Stock Flow Model for the German Residential Rental Market," International Real Estate Review, Asian Real Estate Society, vol. 14(2), pages 159-183.
  • Handle: RePEc:ire:issued:v:14:n:02:2011:p:159-183
    as

    Download full text from publisher

    File URL: http://www.umac.mo/fba/irer/papers/current/vol14n2_pdf/02.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dohse, Dirk & Krieger-Boden, Christiane & Sander, Birgit & Soltwedel, Rüdiger, 2002. "Vom Mangel zum Überfluss - der ostdeutsche Wohnungsmarkt in der Subventionsfalle," Kiel Discussion Papers 395, Kiel Institute for the World Economy (IfW).
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Rental Market; Adjustment Process; Natural Vacancy Rate; Regional Analysis; Germany;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    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:ire:issued:v:14:n:02:2011:p:159-183. 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: (IRER Secretary Office/Webmaster). General contact details of provider: http://www.asres.org/ .

    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 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.

    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.