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A Decision of a Lifetime: Housing Tenure Choice under Randomised Prices

Author

Listed:
  • Peter Lindner

    (Economic Analysis Division)

  • Thomas Y. Mathä
  • Maximilian Propst

    (Oesterreichische Nationalbank)

  • Giuseppe Pulina

  • Michael Ziegelmeyer

Abstract

This paper studies how households react when property prices change. Using a randomised survey experiment in Austria, it shows that lower prices raise renters’ willingness to buy and higher prices raise owners’ willingness to sell. A dynamic model for renters helps explain these choices: the bigger the gap between a renter’s reservation price and the offered price, the more likely the offer is accepted. Overall, willingness to transact remains limited.

Suggested Citation

  • Peter Lindner & Thomas Y. Mathä & Maximilian Propst & Giuseppe Pulina & Michael Ziegelmeyer, 2026. "A Decision of a Lifetime: Housing Tenure Choice under Randomised Prices," Working Papers 283, Oesterreichische Nationalbank (Austrian Central Bank).
    • Handle: RePEc:onb:oenbwp:283
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    File URL: https://www.oenb.at/dam/jcr:f919c0a9-f03f-4135-90de-7e77aadf0315/wp-283.pdf
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    More about this item

    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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