House Prices and Rents: Socio-Economic Impacts and Prospects
We use New Zealand property data at the area unit (suburb) level to examine implied prospects for communities over time, and test whether these derived prospects have explanatory power relating to actual future outcomes. We also use the data to analyse whether disadvantaged communities face particular problems in relation to rental markets. Our results indicate that: capital gains and rental growth expectations historically have appeared reasonable in that they have not been suggestive of asset bubbles or other fad behaviour; derived capital gains and rental growth expectations have explanatory power both over actual future capital gains and actual future rental growth; and lower socio-economic areas face higher rental yields even after controlling for non-socio-economic factors than do high socio-economic areas.
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| Length: | 34 pages |
| Date of creation: | Mar 2007 |
| Date of revision: | |
| Handle: | RePEc:mtu:wpaper:07_01 |
| Contact details of provider: | Postal: Level 1, 97 Cuba Street, P.O. Box 24390, Wellington Phone: 64-4-939-4250 Fax: 64-4-939-4251 Web page: http://www.motu.org.nz Email: More information through EDIRC
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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