Tenants' search and vacancies in rental housing markets

Read, Colin

doi:10.1016/0166-0462(93)90002-v

Cited by 22 publications

(15 citation statements)

References 10 publications

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“…Principal-agent issues are relevant for commissions, firm size, vacancies and geographic specialization (Zorn and Larsen, 1986;Knight et al, 1994;Yang and Yavas, 1995;Yavas and Yang, 1995;Knight, 2002;Benefield et al, 2012;Read, 1993;Brastow et al, 2012). Miller (1978), Anglin et al (2003) and Horowitz (1992) find that a higher list price leads to longer marketing time.…”

Section: Principal-agent Issues In Real Estate Brokeragementioning

confidence: 96%

How many listings are too many? Agent inventory externalities and the residential housing market

Bian

Waller

Turnbull

et al. 2015

Journal of Housing Economics

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Section: Principal-agent Issues In Real Estate Brokeragementioning

confidence: 96%

How many listings are too many? Agent inventory externalities and the residential housing market

Bian

Waller

Turnbull

et al. 2015

Journal of Housing Economics

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“…They provide insightful results regarding the role of imperfect information on rent dispersion and existence of vacancies. Read (1993) considers tenants with heterogeneous search intensities but identical exogenous reservation rents. In Read (1997), searchers all visit more than one housing but differ by their reservation rent.…”

Section: Theoretical Literaturementioning

confidence: 99%

“…Arnott (1989) proposed a rent-posting model with no search costs on the part of the tenants but with idiosyncratic tastes that give some monopoly power to the sellers. Read (1993Read ( , 1997 developed two search models of the rental market with rent-setting landlords. Both papers are partial equilibrium model with tenants engaged in non-sequential search.…”

Section: Theoretical Literaturementioning

confidence: 99%

An Agent-Based Simulation of Rental Housing Markets

2009

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We simulate a closed rental housing market with search and matching frictions, in which both landlord and tenant agents are imperfectly informed of the characteristics of the market. Landlords, who observe a random sample of market offered rents, decide what rent to post based on the expected effect of the rent on the time-on-the-market (TOM) required to find a tenant. Tenants are heterogeneous in income. Each tenant observes their idiosyncratic preference for a random offer and decides whether to accept the offer or continue searching, based on their imperfect knowledge of the offered ret distribution.The steady state to which the simulation evolves shows price dispersion, nonzero search times and vacancies. We further assess the effects of increasing information on either side of the market. Tenants' information level has a positive effect on their welfare. Conversely, landlords are better off when they have less information. In that case they underestimate the TOM and so the steady-state of the market moves to higher rents. However, when landlords with different levels of information are present on the market, the better informed are consistently better off.The model allows the analysis of the dynamics. It is observed that dynamic shocks to the discount rate can provoke overshoots in rent adjustments due in part to landlords use of outdated information in their rent posting decision.

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“…In another study, Smith and Clark (1980, p. 123) put this finding even more boldly: 'changing the format and availability of information provision may, in the long run, have a significant impact on the search patterns and final housing choices of mobile households'. Read (1993) repeated the observation that the urban housing market is characterized by imperfect information, differentiating it from the ideal econometric model or other markets such as the labor market. Particularly significant is the cost of acquiring information, and the impacts of 'imperfect information' on the equilibrium between costs and vacancies (Read 1993).…”

Section: Introduction: Housing Search Under Pre-internet Information mentioning

confidence: 99%

“…Read (1993) repeated the observation that the urban housing market is characterized by imperfect information, differentiating it from the ideal econometric model or other markets such as the labor market. Particularly significant is the cost of acquiring information, and the impacts of 'imperfect information' on the equilibrium between costs and vacancies (Read 1993). Teixeira (1995) focused on the role of the real estate agent in constraining information available to potential buyers, particularly along the lines of ethnicity.…”

Section: Introduction: Housing Search Under Pre-internet Information mentioning

confidence: 99%

The internet and home purchase

Palm

Danis

2002

Tijd voor Econ & Soc Geog

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In the pre-internet era, information was a key determinant of the geographic nature of intra-urban moves. Information was a far more limited commodity, and therefore subject to management and even manipulation. Information brokers, particularly real estate agents, could order and limit the kinds of information to which prospective buyers gained access, with the potential of strongly biasing search space. In the past few years, a vastly enriched information source on housing vacancies has become available through real estate industry-sponsored sites on the internet. This rich information source has the potential to influence spatial patterns and processes in the search for housing by eliminating information barriers in the search process. Three hypotheses were tested with data from Wake County (Raleigh), North Carolina. First, those with less prior familiarity with the destination area would make more frequent use of the internet. Second, internet users would visit fewer houses personally because they would have more prior information about the market, eliminating the need for some personal home visits. Third, internet users, armed with greater information about the house, neighborhood, and prices of other recent sales, would pay less for the same housing/neighborhood bundle. Recent movers in Wake County, North Carolina, were surveyed in early 2000, and the characteristics of web users were compared with nonusers. The major finding of this research is that to date, the internet has had little impact on search patterns, except that those using the internet tend to visit a larger number of houses personally than those who do not use the world wide web as an information source.

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Tenants' search and vacancies in rental housing markets

Cited by 22 publications

References 10 publications

How many listings are too many? Agent inventory externalities and the residential housing market

How many listings are too many? Agent inventory externalities and the residential housing market

An Agent-Based Simulation of Rental Housing Markets

The internet and home purchase

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