Rent index forecasting through neural networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaojie Xu ◽  
Yun Zhang
Keyword(s):  
Neural Networks ◽  
Housing Market ◽  
Rental Housing ◽  
Content Type ◽  
The People ◽  
Price Trends ◽  
Stable Performance ◽  
Simple Neural Network ◽  
Hidden Neurons ◽  
Chinese Housing Market

PurposeChinese housing market has been growing fast during the past decade, and price-related forecasting has turned to be an important issue to various market participants, including the people, investors and policy makers. Here, the authors approach this issue by researching neural networks for rent index forecasting from 10 major cities for March 2012 to May 2020. The authors aim at building simple and accurate neural networks to contribute to pure technical forecasting of the Chinese rental housing market.Design/methodology/approachTo facilitate the analysis, the authors examine different model settings over the algorithm, delay, hidden neuron and data spitting ratio.FindingsThe authors reach a rather simple neural network with six delays and two hidden neurons, which leads to stable performance of 1.4% average relative root mean square error across the ten cities for the training, validation and testing phases.Originality/valueThe results might be used on a standalone basis or combined with fundamental forecasting to form perspectives of rent price trends and conduct policy analysis.

Rental market and macroeconomics: evidence for the US

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vinicius Phillipe de Albuquerquemello ◽  
Cássio Besarria
Keyword(s):  
Housing Market ◽  
Public Policies ◽  
Rental Housing ◽  
Real Estate Market ◽  
Macroeconomic Shocks ◽  
Content Type ◽  
The Real ◽  
The Us ◽  
The Face ◽  
Rental Housing Market

PurposeThe aim of this paper is to assess whether the inclusion of the rental housing market affect the dynamics of the real business cycles (RBCs).Design/methodology/approachFor this investigation, the authors model and estimate two dynamic stochastic general equilibrium (DSGE) versions for the US economy, one with and one without the presence of residential rent.FindingsThe findings provide evidence that the inclusion of the rental housing market can improve the assessment of public policies and the projection of scenarios in the face of sudden macroeconomic shocks. The addition of this secondary housing market augments the effect of total factor productivity (TFP) shock on output and consumption. In addition, it increases the effect of the credit shock on the demand for housing. The latter highlights the role of credit for the real estate market. Therefore, the authors recommend that analysts and macro-prudential authorities consider adding it to their models.Originality/valueThe findings provide evidence that the inclusion of the rental housing market can improve the assessment of public policies and the projection of scenarios in the face of sudden macroeconomic shocks.

Black money, “white” owners, and “blue” tenants in the Bangladesh housing market

2016 ◽  
Vol 23 (2) ◽  
pp. 501-526 ◽  
Author(s):  
S.M. Solaiman
Keyword(s):  
Housing Market ◽  
Money Laundering ◽  
Ethical Behaviour ◽  
Positive Contribution ◽  
Human Beings ◽  
Economic Sectors ◽  
Content Type ◽  
The People ◽  
The Government ◽  
The Impact

Purpose The main purpose of this paper is to critically examine the impact of black money whitening opportunity on the Bangladesh housing market and its ramifications for honest taxpayers and criminal conduct of the people in the country. Design/methodology/approach This paper relies on both primary and secondary materials and carries out an archival analysis of the resources available in libraries and online databases. Findings It demonstrates that black money whitening opportunity has failed to create additional demands for housing property, rather it encourages money laundering, corruption and other criminal activities. Hence, a set of specific recommendations have been submitted to effectively deal with the prevention of generation of black money instead of allowing them to be invested in properties with impunity. Research limitations/implications The discussions are concentrated on the legality of offering amnesty to black money holders and the impact of such indemnities on the housing market in Bangladesh; hence, it does not consider impacts on other economic sectors. It is expected that the publication of this paper will stimulate the government of Bangladesh to discontinue the disputed amnesty in Bangladesh, and other nations having similar problems with black money will be encouraged to follow suit. Practical implications It is anticipated that the implementation of the recommendations furnished in this paper will contribute to significantly decreasing money laundering, corruption and other offences involving money in Bangladesh and in other countries. Social implications Prevention of corruption and other financial crimes. Originality/value This paper represents its originality in its critical analysis of frequent offerings of the opportunity for whitening black money and their unfair impacts on honest taxpayers and resultant stimulation for engaging in money laundering, corruption and other felonies. It evidently justifies the assumption that such amnesties to wrongdoers are contrary to the national constitution, anti-corruption and anti-money laundering legislation and they wound the sense of ethical behaviour of human beings. Moreover, it proves the hypothesis that such opportunities being offered to black money holders have no positive contribution towards creating additional demands in the country’s property markets.

Homeownership rates of financially constrained households

2017 ◽  
Vol 10 (2) ◽  
pp. 111-123
Author(s):  
Cecilia Enström-Öst ◽  
Bo Söderberg ◽  
Mats Wilhelmsson
Keyword(s):  
Housing Market ◽  
Design Methodology ◽  
Financial Constraints ◽  
Rental Housing ◽  
Probit Model ◽  
Tenure Choice ◽  
Content Type ◽  
Explicit Consideration ◽  
The Government ◽  
Rental Housing Market

Purpose This paper aims to examine tenure choice in the Swedish housing market with explicit consideration of households’ credit constraints in combination with age and ethnic background. Design/methodology/approach Observations of some 940,000 households were used to analyse the Stockholm housing market in 2008, prior to the implementation of the mortgage cap. The tenure choice models were estimated using a two-stage instrument variable (IV) logit and probit model with ownership or renting as outcome. Findings The results suggest, as expected, that being financially restricted is negatively related to owning. In particular, financial restriction is more binding for young households and households with a foreign background than for other types of households. These two sub-groups are also known to have difficulties establishing themselves in the rental housing market, and are therefore specifically vulnerable to further financial constraints such as borrowing restrictions or amortization requirements. Originality/value The government in Sweden has become concerned with the rapid growth in household indebtedness. As a response, a 0.85 loan-to-value ratio mortgage cap was introduced in 2010. However, critics are concerned with the effects this may have on the possibility for certain households to purchase a dwelling.

Neighborhood effects of housing program using Jeonse in Korea

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sungjin Yun
Keyword(s):  
Housing Market ◽  
Public Housing ◽  
Neighborhood Effects ◽  
Negative Impact ◽  
Rental Housing ◽  
Hierarchical Linear Model ◽  
Hedonic Price ◽  
Housing Program ◽  
Content Type ◽  
Tenure System

Purpose This study aims to introduce the Youth Jeonse Rental Housing Program using the unique characteristics of the Korean housing market to explain its theoretical value in the current theoretical landscape of public housing and to identify the effect of the program on the regional housing price. Design/methodology/approach This study uses three hedonic price models on the basis of Korea’s housing market, namely, own, jeonse and rent models. Moreover, it uses the hierarchical linear model to include both house- and region-level variables. Findings Analysis shows that youth rental housing has no effect on falling prices in the region unlike long-term rental housing. Thus, the policies using regional tenure system are more effective in the social mix than existing public housing policies. Originality/value This study introduces the program using Korea’s unique tenure system called jeonse, arguing its advantages for the supplier, recipients and regional neighborhoods. Suppliers can easily provide affordable housing at a low economic and administrative cost, whereas recipients can easily mix socially, have broad housing choices and a fighting chance for a stable life. Additionally, this policy has a low negative impact on the region. Furthermore, this study theoretically presents the potential for mixed paths other than demand or supply policies. It introduces and analyzes special policy objectives for youth housing problems.

Investigating the impact of home-sharing on the traditional rental market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuzhi Zhang ◽  
Zhijie Lin ◽  
Junghyun Maeng
Keyword(s):  
Housing Market ◽  
Relevant Literature ◽  
Rental Housing ◽  
Sharing Economy ◽  
Multiple Sources ◽  
Content Type ◽  
Level Data ◽  
Rich Data ◽  
The Impact ◽  
Rental Housing Market

PurposeThe sharing economy has enjoyed rapid growth in recent years, and entered many traditional industries such as accommodation, transportation and lending. Although researchers in information systems and marketing have attempted to examine the impacts of the sharing economy on traditional businesses, they have not yet studied the rental housing market. Thus, this research aims to investigate the impact of the sharing economy (i.e. home-sharing) on traditional businesses (i.e. rental housing market).Design/methodology/approachThe authors assemble rich data from multiple sources about the entry of a leading Chinese home-sharing platform (i.e. Xiaozhu.com) and local housing rental price index. Then, econometric models (i.e. linear panel-level data models) are employed for empirical investigation. Instrumental variables are used to account for potential endogeneity issues. Various robustness checks are adopted to establish the consistency of the findings.FindingsOverall, the estimation results show that the entry of a home-sharing platform will decrease the local housing rental price. Moreover, this impact would be strengthened in a more developed city. Additionally, this impact would be strengthened with higher prices of new houses or second-hand houses.Originality/valueFirst, this research is one of the first to study the impact of the sharing economy (i.e. home-sharing) on traditional markets (i.e. housing rentals). Second, it contributes to the relevant literature by documenting that the impact of a platform's entry is not uniform but contingent on city and housing market characteristics. Third, practically, the findings also offer important implications for platform operators and policy makers.

scholarly journals The securitization of residential rental revenue streams in Europe

2017 ◽  
Vol 10 (4) ◽  
pp. 503-518 ◽  
Author(s):  
Jaume Roig Hernando
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Risk Sharing ◽  
Rental Housing ◽  
Cash Flows ◽  
Property Market ◽  
Investment Funds ◽  
Content Type ◽  
The Usa ◽  
Residential Market

Purpose The purpose of this paper is to analyze the securitization of rental streams, a new investment and finance product introduced in the USA in 2013 that enables fundraising from large residential portfolios owned by major investment funds and investment banking. The securities are made up of non-performance loans as well as real estate portfolios of financial entities. Design/methodology/approach An academic analysis of the European securitization market is performed, as well as a broad overview of the state of the art of the rental housing market and investment property market. Moreover, a market study of Real Estate Owned (hereinafter, REOs) and Real Estate Debts is carried out to determine both the present framework and future trends. Various financial entities and real estate management companies are examined through interviews and data collection to assess the reality of distressed assets and residential portfolios owned by major investors. It introduced the Broker’s Price Opinion concept, de loan-to-value concept and the London Interbank Offered Rate. Findings REO-to-rental securitization is a step forward toward the democratization of finance through the globalization of the residential market, improving risk sharing for major and retail investors. The securitization of rental streams in Europe has not taken off, despite several issuances in the USA since 2013 with significant success where first tranches obtained a credit qualification of triple-A from the majority of the main rating agencies. Originality/value At the end of 2013, a global investment firm launched an innovative finance and investment vehicle that securitized the cash flows originating from leased residential properties. That issue resulted in considerable success and in the development of a new alternative and innovative financing source for real estate activity. Taking into account that housing is a primary need of our society, there is a strong motivation for improving the residential market, and thus, REO-to-rental securitization could help take a step forward in making the housing market more efficient.

Regional economic divergence and house prices: a comparison of Germany and the UK

2019 ◽  
Vol 12 (4) ◽  
pp. 722-735
Author(s):  
Benedikt Blaseio ◽  
Colin Jones
Keyword(s):  
Human Capital ◽  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Annual Data ◽  
Content Type ◽  
Economic Divergence ◽  
Price Trends ◽  
The Uk

Purpose Increasing regional wealth disparities have been explained by the role of agglomeration economies and the concentration of skilled mobile human capital. This paper aims to draw out the role of the housing market by considering the differential experience of Germany and the UK. Design/methodology/approach The empirical analysis is based on the comparison of regional house price trends in Germany and UK-based annual data from 1991 to 2015. Findings Regional house price inequality is found to have increased in both countries with the spatial concentration of skilled human capital. However, the main conclusion is that there are differential paths to regional house price inequality explained by the parameters of each country’s housing market. Originality/value The research is the first to compare and explain differential regional house price trends across countries.

Empirical analysis of residential submarket conceptualisation in Ghana

2019 ◽  
Vol 12 (4) ◽  
pp. 763-787 ◽  
Author(s):  
Emmanuel Kofi Gavu ◽  
Anthony Owusu-Ansah
Keyword(s):  
Housing Market ◽  
A Priori ◽  
Rental Housing ◽  
Alternative Methods ◽  
Market Dynamics ◽  
Content Type ◽  
Rental Market ◽  
For Profit ◽  
Nested Approach ◽  
Rental Housing Market

Purpose The purpose of this paper is to empirically test for submarket existence based on an understanding of the residential rental housing market in Ghana. Design/methodology/approach Based on extant literature and market observations, the authors provide key concepts and an overview of the residential rental market dynamics in Ghana. Reseachers appreciate that submarkets may exist in the Ghanaian rental market but have ignored the empirical testing for submarket existence due to data asymmetries. Based on real estate experts and stakeholder consultations, a priori delineation of submarkets are constructed based on spatial, structural and a nested approach. Submarket existence is tested using the Kruskal–Wallis H test and Hedonic modelling techniques. Findings By using fieldwork data from Accra rental market, the analysis provides credence to the conceptualisation of submarkets and how to empirically test for same. It is argued that researchers should use alternative methods to compare results to make far-reaching conclusions. Research limitations/implications Examining the hypothesis that differential rental values exists for submarkets has implications for policy decisions to target submarket constructs differently to improve market maturity. Practical implications The research provides stakeholder investors in the rental space an understanding of market dynamics for profit maximisation, and end-users to maximise utility in deciding where to live – and as such households could benefit from making informed investment decisions on housing. Originality/value This research is one of the first attempts to empirically identify and test for submarkets existence in Ghana’s residential rental housing market.

Investigating defiant attitudes in keeping lease agreement obligations in private rental housing market in Nigeria

2016 ◽  
Vol 34 (3) ◽  
pp. 221-246 ◽  
Author(s):  
Job Taiwo Gbadegesin ◽  
Harry van der Heijden ◽  
Peter Boelhouwer
Keyword(s):  
Housing Market ◽  
Significant Relationship ◽  
Rental Housing ◽  
Property Market ◽  
Content Type ◽  
Rental Market ◽  
Code Of Practice ◽  
Professional Body ◽  
Rental Housing Market ◽  
Lease Agreement

Purpose – The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between managers (agents/private rental housing providers or landlords) and end-users (tenants – rental housing consumers), with a view to identifying challenges in rental housing lease administration in Nigeria emerging rental market. Design/methodology/approach – The quantitative data collected from practicing estate surveyor and valuers (statutorily registered agents), who manage private rental housing in their portfolios on behalf of owners and tenants, who occupy rental housing within Lagos state (the largest property market in Nigeria and West Africa). Using a theoretical model in the context of five lease agreement obligations, data collected were analyzed using descriptive and inferential statistics (one sample t-test, independent t-test and correlation). Findings – While economic circumstances (economic factors) are considered the major vulnerable factor that cause acts of non-compliance, defiance against “covenant not- to- sublet (subletting covenant (SC))” and “prompt rental payment covenant” are the two most non-compliance attitudes (precipitation events) observed from both actors. There is correlation among all vulnerability elements and precipitating events. While a significant relationship was only observed between “SC” and all vulnerability elements on the part of agents, there is significant relationship among all the vulnerability elements and precipitating events on the part of tenants. Also, while tenants attached higher significance to all the vulnerability factors than managers, both actors attached different level of priority to precipitating events. Lastly, equitable remedies and peaceful entry are the two most adopted intervention tools. Research limitations/implications – This paper is limited to seeking both the professional opinion of licensed/registered agents and the rental housing consumers-tenants. Practical implications – The research points to an increasing need for the stakeholders – Estate Surveyors and Valuers Registration Board of Nigeria (a Government parastatal) and the Nigerian Institutions of Estate Surveyors and Valuers (the constituted professional body), to establish and reform the code of practice in this direction with due consideration to the factors identified in this study. Effort also should be upgraded in the intervention techniques adopted in order to improve on emerging rental market. Originality/value – The paper explores an important aspect of lease administration in private rental housing market. It also provides platform on which the acts of defiance can be wiped out in the emerging rental market.

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