DOES RENT DEREGULATION INFLUENCE HOUSING TENURE CHOICE? THE CASE OF THE CZECH REPUBLIC

• Authors: Špalková Dagmar , Jiří Špalek
• Languages of publication: EN

Abstracts

EN

The choice between buying and renting house is usually referred to as tenure choice. Existing literature defines several typical factors (patterns) which influence this key decision every household has to make. In our analysis we propose one more factor which might be of interest. Based on the data covering last phase of the rent deregulation process in the Czech Republic (CR) in 2005 – 2011 we assess to what extent rent deregulation in the CR has influenced the tenure choice patterns. Our analysis using logit model did prove that regulated rents were an important factor affecting tenure choice. After deregulation households living in apartments with regulated rent preferred to buy house rather than stay in rental sector. The results show that also in the CR was tenure choice influenced by household income, education, marital status. By contrast, gender, age, number of children or retired persons in the household turned out to be insignificant.

Keywords

EN

HOUSING; TENURE; CHOICE; LOGISTIC REGRESSION; RENT; CZECH REPUBLIC

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2014
• Volume: 62
• Issue: 7
• Pages: 692 – 708

Contributors

author

Špalková Dagmar

• Masarykova Univerzita, Lipová 41a, 602 00 Brno, Czech Republic

author

Jiří Špalek