Fluctuations in Rents Explain the Potential for Urban Growth Through Policy-relevant Inferences
Open Access
Author:
Crossman, Kristen Joan
Area of Honors:
Risk Management
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Dr. Brent William Ambrose, Thesis Supervisor Austin Jay Jaffe, Thesis Honors Advisor
Keywords:
real estate rents policies regression analysis fixed-effects random-effects
Abstract:
Historically, studies of real estate rental markets have concluded to various determinants as the causes for fluctuations in rental prices. Research often leads us to believe that basic supply and demand factors, such as population and employment rates, are the main economic indicators effecting real estate values and hence, stimulating urban growth. Many studies fail to recognize the significance of socio-economic and political influences when attempting to interpret the cause of city growth. The purpose of this research is to improve upon the knowledge associated with rental growth by attempting to quantify the effect of local policies on the market. Through the use of a standard multiple linear regression, fixed-effects regression, and a random-effects regression model, we will measure the significance of six variables in explaining the change in rent within 47 cities across America between 2006 and 2010.