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We propose applying the standard aggregate demand and aggregate supply model (AD-AS) to the housing market. It is a very simple and intuitive tool that can help shed light on the major forces at play in the market and that can supplement the use of the general equilibrium and dynamic stochastic equilibrium models (DSGE). The latter models are very sophisticated and aim to cover many aspects of the economy, but they require a significant number of long time series to estimate the model parameters. However, in many countries, such as post-socialist countries, the time series are short. Those models moreover cover only real house prices, but in certain situations we should consider real and nominal prices at the same time.

Vertical integration is a growth strategy whereby a firm engages in multiple stages of the value chain. Although the benefits of vertical integration are well documented, few studies have examined its relevance in real estate. In response to this lack of research, this paper explores tenant perceptions of property managers’ vertical integration and effectiveness. The results of this international study show the benefits of vertical integration extend to residential real estate, such that renters are more trusting, loyal, committed, and desirable when they perceive their property manager as vertically integrated. This paper also uncovers a concering finding that many tenants are living in unaffordable rental accomodations, requiring further research. This study contributes to a large body of vertical integration literature and extends the empirical examinations to real estate and property management.