Qizhou Xiong
  • Home
  • Research
    • Housing Yields
    • EPC Project
    • Endogenous Stock Market Participation
    • Housing Consumption EU
    • College Choice Allocation
    • Liquidity Premium of Safety
  • Curriculum Vitae
  • Data
  • Teaching
  • Real Estate Data
  • Blog

Housing Yields 
with Stefano Colonnello and Roberto Marfè

This paper investigates heterogeneity in residential property yields using rental and sale listings from the largest German internet real estate platform. Equipped with property-level rent-to-price ratios obtained via matching properties for sale and for rent, we show that they strongly co-move with local factors, such as population age structure, industry structure, housing supply rigidities, and the liquidity and size of the housing market. Regional differences are particularly pronounced between globally relevant cities and other areas. However, a large fraction of the variation of rent-to-price ratios can be explained neither by local factors nor by an extensive array of property-specific observable features, pointing to the crucial role of idiosyncratic factors and within-city aggregation economies. We then create a pseudo-panel to examine the time-series dimension of house prices and show that the ability of expectations about discount and rent growth rates impounded in rent-to-price ratios to predict return and rent growth is statistically significant but of limited economic magnitude. ​
cmx_hy_16022021.pdf
File Size: 6482 kb
File Type: pdf
Download File


Picture
Picture

Median Rent-to-Price Ratio at Postcode Level in German Cities


Powered by Create your own unique website with customizable templates.