Relationship between rental price and income in the Spanish residential market and a housing policy

Authors

  • Alejandro Belchí Euroval Instituto de Análisis Inmobiliario
  • Francisco Guijarro Universidad Politécnica de Valencia
  • Gumersindo Ruiz, Euroval

DOI:

https://doi.org/10.7203/IREP.3.2.22787

Abstract

The relationship between housing rental prices and household disposable income, or per capita income, for a particular region, is a common topic of research in the real estate market area. We introduce a model where the square meter rental price is explained by the median income, the supply of multi-family rental housing, and the ratio of this variable to the population, for counties and towns. Income elasticities are also computed. Although positive relationships with some significances are found, the limited explanatory power of the model supports the hypothesis that rental prices also depend on factors other than supply and demand, opening up some possibilities for a housing policy. The very large database used throughout the research allows to support the hypothesis in favor of a constrained performance of the market and, at the same time, shows the need to develop a sufficient sized market, with significant consequences for a housing economic policy.

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Author Biography

Gumersindo Ruiz, Euroval

Instituto de Análisis Inmobiliario y Universidad de Málaga

References

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Published

2021-12-30

How to Cite

Belchí Euroval, A., Guijarro, F., & Ruiz, Euroval, G. (2021). Relationship between rental price and income in the Spanish residential market and a housing policy. International Review of Economic Policy-Revista Internacional De Política Económica, 3(2), 61–76. https://doi.org/10.7203/IREP.3.2.22787
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Issue

Vol. 3 No. 2 (2021)

Section

Articles

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