Access to affordable housing has been a long-standing issue for households in most cities. This paper reports on a study of house rent prices in Port Moresby, factors influencing them, and affordability of the prices. Data was obtained from houses that were advertised for rent in Port Moresby for a period of 13 months and were analysed using the ordinary least squares (OLS) regression model. Th...

The room assignment-rent division problem allocates a heterogeneous set of indivisible items (e.g. rooms in a house) along with a share of some divisible item (e.g. the rent for the house), such that all items and resources are allocated without surplus or deficit, and each agent receives exactly one indivisible item. It is desirable to have envy-free outcomes but this is not possible for deter...

We consider which factors determined the price–rent ratio for the housing market in 18 U. S. metropolitan statistical areas (MSAs) and at the national level over the period of 1975– 2014. Based on a present-value framework, our proposed empirical model separates the price–rent ratio for a given market into unobserved components related to the expected real rent growth and the expected housing r...

A group of friends consider renting a house but they shall first agree on how to allocate its rooms and share the rent. We propose an auction mechanism for room assignment-rent division problems which mimics the market mechanism. Our auction mechanism is efficient, envy-free, individually-rational and it yields a non-negative price to each room whenever that is possible with envy-freeness.

We investigate whether expectations that are not fully rational have the potential to explain the evolution of house prices and the price-to-rent ratio in the United States. First, a stylized asset-pricing model solved under rational expectations is used to derive a fundamental value for house prices and the price-rent ratio. Although the model can explain the sample average of the price-rent r...

certainly not given to a case reported in the early autumn. According to a local newspaper, a middle-aged couple were evicted from their house by the local housing authority because they had failed to pay rent.

Using a dynamic equilibrium model of housing tenure choice with fully specified markets for homeownership and rental properties, and endogenous house prices and rents, this paper studies the effect of fundamentals on equilibrium house prices and rents. Lower interest rates, relaxed lending standards, and higher incomes are shown to account for approximately one-half of the increase in the U.S. ...

The present value model of asset prices a la Campbell and Shiller predicts the price-rent ratio in the housing market to be stationary. The observed movements in the actual price-rent ratio, often exhibiting large and long swings in the ratio, may put into question the validity of the standard present value model. In this paper, we allow for two sources of possibly unwieldy deviations in the pr...

We show that the COVID-19 pandemic brought house price and rent declines in city centers, increases away from center, thereby flattening bid-rent curve most U.S. metropolitan areas. Across MSAs, of is larger when working home more prevalent, housing markets are regulated, supply less elastic. Housing predict an urban revival with growth exceeding suburban for foreseeable future, as recedes.