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Paper on ''Consequences of the Russia–Ukraine War for Housing Markets'' edited by Mateusz Tomal

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis

This study examines the impact of Ukrainian war refugees on actual rental prices in 27 European countries. Using panel data regression analysis for the period 2017Q1-2023Q1, the study found that inflation, house price growth, and interest rates were the primary drivers of rental price growth after February 2022. The study also showed that an inflow of Ukrainian refugees equal to 1% of the host country’s population translated into an increase in rental price growth of 0.2-0.3%, but this effect was not statistically significant at the 5% probability threshold. Auxiliary estimations revealed the statistical significance of Ukrainian migration when adjusting for the stringency of rent controls and size of the rental market.

30.5.2024 | Adam Czerniak | Volume: 11 | Issue: 1 | Pages: 1-14 | 10.13060/23362839.2024.11.1.560

Landlords vs Tenants = Top vs Bottom? Class Positions in Rental Housing in Germany

Landlords vs Tenants = Top vs Bottom? Class Positions in Rental Housing in Germany

Home ownership status is closely linked to social inequality in Germany, where tenants face several disadvantages in multiple dimensions. Even though Germany is one of the biggest renter and therefore landlord nations, in the context of the housing question it is the demand side that has been discussed and studied most. Less attention has been given to the supply side, particularly individual small-scale landlords. This article is one of the first attempts to shed light on the largest provider group that literally holds the keys to homes in its hands. Drawing on quantitative data, this article examines the socioeconomic profiles of landlords compared to tenants over time, finding landlords in the upper strata and witnessing long-term wealth divides in relation to tenants. Coupled with structural power imbalances during tenancies, this research seeks to stimulate research on private renting in the future from a class perspective.

30.6.2023 | Philipp Kadelke | Volume: 10 | Issue: 1 | Pages: 66-76 | 10.13060/23362839.2023.10.1.554

Vertical Integration & Performance in Residential Real Estate

Vertical Integration & Performance in Residential Real Estate

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.

30.3.2023 | Grant Alexander Wilson, Jason Jogia, Gabriel Millard | Volume: 10 | Issue: 1 | Pages: 1-13 | 10.13060/23362839.2023.10.1.549

Diving in at the ‘Bottom End’: The Risk Awareness and Risk Management Practices of Sub £65K Landlords

Diving in at the ‘Bottom End’: The Risk Awareness and Risk Management Practices of Sub £65K Landlords

Significant growth in Scotland’s private rented sector over the last 25 years has been led by a large number of individual lay investors/landlords who each own a smattering of properties. These characteristics, which are replicated in several countries where neoliberal housing policies prevail, have implications for the efficacy of PRS investments, but also for conditions and the stability of investment patterns within the sector. This study examines landlord investment risk awareness and behaviours via qualitative interviews with a small sample of Scottish landlords operating at the ‘bottom end’ of the market, which is disproportionately home to vulnerable groups and where some investment risks are believed to be more acute. The findings suggest that some landlords have relatively low levels of risk awareness, fail to adequately consider risk prior to investing in the PRS, have mixed success in selecting and implementing risk management and mitigation strategies, and incur significant risk-borne costs, which can limit returns.

12.10.2022 | Andrew Watson | Volume: 9 | Issue: 2 | Pages: 1-17 | 10.13060/23362839.2022.9.2.545

Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?

Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?

In this paper we present the first insight about the impact of the COVID epidemic on the pri-mary housing market in Poland, with a focus on Warsaw which is the largest market. We ex-plain the structural features that allowed the market to return to pre-shock levels after the pandemic shock. Contrary, after the 2007-2008 global financial crisis the negative consequences lasted for several years. This time a sharp monetary policy and fiscal intervention was carried out. Moreover, the developer sector is much more mature, has expanded its production capaci-ties. We show empirically that the monopolistic competition of developers allowed them to restrict excessive demand that was observed before the COVID broke out. In this way they were able to increase prices despite the economic problems. Another important structural change was the increased housing demand, mainly for investment housing, which was fi-nanced predominantly with cash and contributed to the development of the rental market. We approximate the investment demand, which was generated by private households that pur-chased flats for rental, with the help of a simple demand and supply model.

12.7.2021 | Hanna Augustyniak, Jacek Łaszek, Krzysztof Olszewski, Joanna Waszczuk | Volume: 8 | Issue: 2 | Pages: 1-15 | 10.13060/23362839.2021.8.2.534
Short-Term Rentals and the Housing Market

Airbnb, Platform Capitalism and the Globalised Home

Airbnb, Platform Capitalism and the Globalised Home

Airbnb, the most ubiquitous of the many online short-term rental platforms offering residential homes to tourists, has infiltrated local neighbourhoods and housing markets throughout the world. It has also divided policy-makers and communities over whether tourism in residential homes is a benign example of the so-called ‘sharing’ economy or a malignant practice which destroys neighbourhoods. These differing positions reflect alternative and changing notions of ‘home’ within wider processes of financialisation and platform capitalism. This paper examines these themes with reference to stakeholder statements solicited in response to government inquiries on how to regulate short-term rental housing in Australia.

23.6.2021 | Nicole Gurran, Pranita Shrestha | Volume: 8 | Issue: 1 | Pages: 107-118 | 10.13060/23362839.2021.8.1.527
Short-Term Rentals and the Housing Market

Short-Term Rentals and the Residential Housing System: Lessons from Berlin

Short-Term Rentals and the Residential Housing System: Lessons from Berlin

The increasing professionalisation of Airbnb-style short-term rentals has emerged within a grey space between residential housing and hotel accommodation. Subsequently, an array of contestations have arisen, due in no small part to the intangibility of online short-term rental platforms as well as the absence of clear regulation at the municipal level. In urban settings already confronted with housing issues such as supply shortages and reduced affordability, recent studies show how the proliferation of short-term rentals can amplify housing market pressure while feeding into the broader urban processes of gentrification, touristification, and displacement. Using Berlin, Germany, as a site of analysis, this paper explores the expansion of short-term rentals in relation to various policy interventions designed to regulate the conversion of residential housing into tourist accommodation.

21.6.2021 | Adam Crowe | Volume: 8 | Issue: 1 | Pages: 129-140 | 10.13060/23362839.2021.8.1.529
Short-Term Rentals and the Housing Market

Challenging the Discourse around the Impacts of Airbnb through Suburbs Not Cities: Lessons from Australia and COVID-19

Challenging the Discourse around the Impacts of Airbnb through Suburbs Not Cities: Lessons from Australia and COVID-19

Supporters of short-term rental (STR) platforms state that STRs represent a small fraction of the housing market of major cities, and therefore have little impact on rents. However, there is emerging evidence that suggests that STRs have highly localised impacts. In this article, we use the natural experiment of the pause in tourism caused by the COVID-19 pandemic to highlight the impact of a decrease in STR listings on rental markets in the case study city of Hobart, Australia. We find that rental affordability has improved in Hobart’s STR-dense suburbs with the increased vacancies from the underutilised STR properties. These results provide evidence of the impact of STRs on local housing markets when analysed from a finer scale than the whole of city approach. The focus on local housing markets help local communities and city governments build an argument for the impact of STRs on tight housing markets.

20.6.2021 | Caitlin Buckle, Peter Phibbs | Volume: 8 | Issue: 1 | Pages: 141-149 | 10.13060/23362839.2021.8.1.530
Short-Term Rentals and the Housing Market

The Impact of Airbnb on Long-Term Rental Housing: The Case of Ljubljana

The Impact of Airbnb on Long-Term Rental Housing: The Case of Ljubljana

Airbnb has become a fixture in the development of global cities, especially influencing their residential characteristics. The company derives from the concept of the sharing economy, the essence of which is the exchange of services or goods between individuals that set the rules of operation without generating profits, but together generating more revenue. It insists that it does not represent direct competition to other urban accommodation services and that it merely seeks to expand the tourism market. Nonetheless, this article proceeds from the assumption that Airbnb is influencing and transforming the housing market of the cities it operates in. It focuses on Ljubljana, which until 2019 had a record number of international arrivals and overnight stays. The findings confirm that short-term Airbnb rentals affect the long-term rental market in Ljubljana. They also show that rentals through Airbnb involve an extremely high share of the grey economy.

19.6.2021 | Boštjan Kerbler, Polona Obrč | Volume: 8 | Issue: 1 | Pages: 150-158 | 10.13060/23362839.2021.8.1.531
Short-Term Rentals and the Housing Market

Conditions for the Introduction of Regulation for Short-Term Rentals

Conditions for the Introduction of Regulation for Short-Term Rentals

Most cities in major agglomerations in Europe started to address the rise of short-term accommodation rentals by introducing regulation designed to protect the local housing stock. The momentum behind the widespread introduction of such regulations can be attributed to qualitative and quantitative factors. This article examines selected fields related to short-term rentals in order to uncover the (structural) triggers or conditions that are necessary and sufficient for municipalities to initiate the regulation of their housing market. The study is based on the systematic examination of the effects of those triggers and their combinations using qualitative comparative analysis (QCA). With this method, we explore the implementation or non-implementation of regulation on a sample of major German cities. The results suggest a universal set of conditions covering three central fields: housing market situation, accommodation market conditions and tourism accommodation demand.

18.6.2021 | Vilim Brezina, Jan Polívka, Martin Stark | Volume: 8 | Issue: 1 | Pages: 159-170 | 10.13060/23362839.2021.8.1.532
Short-Term Rentals and the Housing Market

Understanding Short-Term Rental Regulation: A Case Study of Lisbon (Portugal)

Understanding Short-Term Rental Regulation: A Case Study of Lisbon (Portugal)

Notwithstanding the positive impacts of short-term rentals (STRs), it is often their negative effects that have been raising pressing questions for urban planners and public policy-makers, including changes in housing dynamics, conflicts between residents and visitors, tourism gentrification phenomena, unfair competition practices, and tax evasion, among other externalities. Because of this, short-term rental regulation has become an important item on the political agenda of municipalities that live daily with these issues. In order to contribute to a better understanding of STR regulatory approaches, this paper investigates how Lisbon (Portugal) has been responding to the effects attributed to STRs. It can be concluded that the main negative impact of STR in Lisbon is its effects on the housing prices increase and that the main STR regulation measure is focused on zoning: definition of zones for the application of differentiated STR rules and management.

17.6.2021 | Joana Almeida, Frederico Oliveira, Jorge Baptista e Silva | Volume: 8 | Issue: 1 | Pages: 171-185 | 10.13060/23362839.2021.8.1.533

The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw

The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw

In this study, we analyse the impact of COVID-19 on house rents and prices in Warsaw, the capital of Poland. Hedonic indexes indicate a slight increase in prices (ca. 1.2%) and a substantial drop in long-term rents (ca. -7.7%) between March 2020 and December 2020. The largest decline in rents occurred in centrally located neighbourhoods, which was largely due to the inflow of new housing supply from the short-term rental market (the Airbnb Warsaw market shrank by almost 30% in December 2020 y/y). Using hedonic methods, we show the effect of the shrinking Airbnb market on the drop in long-term rents. The study indicates the elasticity of rents with respect to Airbnb supply, with a 1% change in Airbnb listings leading to a 0.031% change in rents.

15.6.2021 | Radoslaw Trojanek, Michal Gluszak, Michal Hebdzynski, Justyna Tanas | Volume: 8 | Issue: 1 | Pages: 72-84 | 10.13060/23362839.2021.8.1.524

Decomposing Housing Unaffordability

Decomposing Housing Unaffordability

A US household is considered ‘rent burdened’ when its rent exceeds 30% of its income. This simple ratio can be decomposed to better understand the sources of unaffordability across space. To demonstrate this new approach, I rewrite the equation for rent burden as a sum of four factors: rent gap, income gap, excess size cost, and demographic baseline, and show that US rental unaffordability is mostly the result of low incomes. Focusing on the New England region, however, I show that high rent is the primary cause of unaffordability in high-cost, high-wage metro areas. This decomposition can help affordability advocates prioritise strategies appropriately across space.

6.5.2021 | Salim Furth | Volume: 8 | Issue: 1 | Pages: 62-71 | 10.13060/23362839.2021.8.1.523

An Analysis of the Holiday Rental Issue in Spain

An Analysis of the Holiday Rental Issue in Spain

Holiday lets and holiday rentals have generated a major debate in recent years in Spain with regard to their regulation. Their impact, not only on tourism, but also on urban sustainability and local planning, have led to public intervention to control their expansion. This article analyses the origin of holiday lets, their problems, and how the public authorities have intervened in this regard, thus providing an overview of the impact of this type of accommodation in Spain.

5.5.2021 | Nicolas Alejandro Guillen Navarro | Volume: 8 | Issue: 1 | Pages: 47-61 | 10.13060/23362839.2021.8.1.522

The Impact of the COVID-19 Pandemic on the Private Rental Housing Market in Poland: What Do Experts Say and What Do Actual Data Show?

The Impact of the COVID-19 Pandemic on the Private Rental Housing Market in Poland: What Do Experts Say and What Do Actual Data Show?

The aim of the article is to determine the impact of the COVID-19 pandemic on the level of housing rents using the example of the City of Krakow. This study is based on objective data on rental prices and subjective information obtained from real estate agents using a questionnaire survey. The research revealed that the first wave of the COVID-19 pandemic actually led to a 6-7% decrease in prices in the rental market in Krakow, while at the same time the surveyed real estate agents had estimated that rents would drop by about 13%. With the second wave of the pandemic, it is possible to see that its immediate impact, i.e. between the third and fourth quarter of 2020, has led to a further 6.25% drop in rents. It should be noted that the latter decrease was very accurately predicted, both by the survey respondents and by the econometric models used. Finally, the results of the analysis also indicated that the worsening of the pandemic in the last quarter of 2020 will have a significant impact on rent levels in Krakow for all of next year. Regardless of how the economy develops, rental prices are forecast to fall further in 2021q1. However, in the subsequent quarters of 2021, rents are projected to increase, but ultimately their level will not return to pre-pandemic values even in 2021q4. The latter is likely to happen only in the second half of 2022.

18.3.2021 | Mateusz Tomal, Bartłomiej Marona | Volume: 8 | Issue: 1 | Pages: 24-35 | 10.13060/23362839.2021.8.1.520

Housing Market Access in the Lisbon Metropolitan Area: Between the Financial and the Pandemic Crises

Housing Market Access in the Lisbon Metropolitan Area: Between the Financial and the Pandemic Crises

The Portuguese housing market underwent major transformations between 2010 and 2020. Until then, a delicate but resentful stability had long existed, with distorted rent schemes and low annual price increases proportional to the national economy and the income of the Portuguese population. After the financial crisis, several internal and external variables converged to dramatically change this scenario. In recent years, a growing number of researchers have centred their attention on the difficulties that the Portuguese urban middle-class populations are facing in trying to find homes. This paper analyses these challenges and their impact quantitatively, focusing on the affordability of housing for purchase or rent and considering synthetic indicators for average household incomes in the Lisbon Metropolitan Area between the beginning of 2016 and the end of 2019. The results show that the cost of buying or renting a house in the main Portuguese urban system has become much more detached from local incomes. The article concludes with reflections on the structural reasons for the enduring inequalities in the housing markets and the difficulties recognising territorial cohesion and spatial justice as important elements shaping urban and housing policies in Portugal.

24.11.2020 | Gonçalo Antunes, João Seixas | Volume: 7 | Issue: 2 | Pages: 58-72 | 10.13060/23362839.2020.7.2.515

Short-term Rentals, Housing Markets and COVID-19: Theoretical Considerations and Empirical Evidence from Four Austrian Cities

Short-term Rentals, Housing Markets and COVID-19: Theoretical Considerations and Empirical Evidence from Four Austrian Cities

Prior to the onset of the pandemic, evidence on the conversion of regular rental housing into permanent holiday homes has fuelled concerns that Airbnb and other short-term rentals contribute to the shortage of affordable homes and to the displacement of regular residents in cities with high housing demand. When the pandemic set in, the media was quick to speculate that holiday homes would be returned to the regular rental market. This paper provides some theoretical reflections on the factors that are driving and impeding such a development and presents preliminary results from an ongoing research project that empirically traces the impacts of COVID-19 on the rental housing market based on an analysis of real estate listings in four large Austrian cities. We argue that a current shift to the regular rental market is likely, but that the medium- and long-term development is uncertain. Empirically, we demonstrate that such a shift has occurred in all four cities considered. We do not find evidence, however, that the increased rental housing supply has dampened rent levels.

23.11.2020 | Justin Kadi, Antonia Schneider, Roman Seidl | Volume: 7 | Issue: 2 | Pages: 47-57 | 10.13060/23362839.2020.7.2.514

Choice or No Choice? Genuine or Fake Choice? – A Qualitative Study for Reflecting on Housing Choice

Choice or No Choice? Genuine or Fake Choice? – A Qualitative Study for Reflecting on Housing Choice

This paper seeks to reflect on issues related to the nature of housing choice, drawing on qualitative empirical data collected in in-depth interviews.  This paper discusses two perspectives related to housing choice, namely, the ‘market perspective of housing choice’ and the ‘perspective of housing choice for well-being’. The ‘market perspective of housing choice’ highlights that desirability generally increases with a greater range of housing choice as the housing supply increases till a climax is reached, after which a further expansion of housing choice may indicate an excess housing supply, which may not be advantageous and home-buyers may instead ‘decide not to choose or buy’.  The ‘perspective of housing choice for well-being’ reveals that choice in the housing arena is often viewed as a means to eventual well-being, rather than as an end in itself.  Housing choice is ‘genuine’ and ‘meaningful’ if there are meaningful and significant options among a few desirable housing alternatives. ‘Fake housing choice’ involves having to choose from among housing options that are all generally bad.

27.7.2020 | Betty Yung, Barbara Y. P. Leung | Volume: 7 | Issue: 2 | Pages: 1-10 | 10.13060/23362839.2020.7.2.510
Varieties of Housing Regime Approaches

Rethinking the Concept of ‘Housing Regime’

Rethinking the Concept of ‘Housing Regime’

‘Housing regime’ is a term that is used relatively often in (macrosocial) research comparing housing policies and systems. However, there is no generally accepted definition of this term. In this paper I shall first scrutinise previous uses of the concept, starting with a discussion of the most famous regime concept – the welfare regime. The discussion paves the way for a redefinition of a ‘housing regime’: the set of fundamental principles according to which housing provision operates in some defined area (municipality, region, state) at a particular point in time. Such principles are thought to be embodied in the institutional arrangements that relate to housing provision, in the political interventions that address housing issues, and as in the discourses through which housing issues are customarily understood. This definition is compatible with the path-dependence approach that has been adopted here and with the aspects of reality that researchers want to capture using the ‘regime’ concept.

7.6.2020 | Hannu Ruonavaara | Volume: 7 | Issue: 1 | Pages: 5-14 | 10.13060/23362839.2020.7.1.499
Varieties of Housing Regime Approaches

Incremental Change in Housing Regimes: Some Theoretical Propositions with Empirical Illustrations

Incremental Change in Housing Regimes: Some Theoretical Propositions with Empirical Illustrations

The durable structures of housing and housing institutions are often subject to long-term processes of incremental change. Nevertheless, housing studies have largely focused either on static snapshots of policies or, more recently, on the inertia of institutional path dependence, while processes of incremental change have been almost entirely neglected. Political scientists (Streeck/Thelen/Mahoney) have proposed a typology of patterns of incremental institutional change, and this paper explores the applicability of this typology to housing structures and housing institutions. We draw on empirical illustrations from the housing literature to show how five types of change – layering, conversion, displacement, drift, exhaustion – apply to housing structures and institutions. We conclude with some general observations on how the typology can be used in further studies of developments in national housing regimes.

6.6.2020 | Bo Bengtsson, Sebastian Kohl | Volume: 7 | Issue: 1 | Pages: 15-24 | 10.13060/23362839.2020.7.1.500
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