Housing Rent Dynamics in Italy

39 Pages Posted: 28 Oct 2010

Date Written: February 19, 2010


In this paper we focus on tenant rents in Italy and compare results from several methods for the rent dynamic estimation. We first document the sources of data available and then introduce quality-adjusted techniques, which enable us to separate the price variation due to qualitative changes in housing attributes from pure price changes. Finally, we compare these measures with unconditional and matched-type price indices derived from microdata. Over the period 1998-2006, we estimate a cumulative rent increase ranging between 40 and 80%. The upper bound refers to the average dynamic for a subset of flats entering the market in a given period. The hedonic approach suggests a substantially lower overall growth in tenant rent, around 40% for the same period.

Keywords: hedonic regressions, matched-models, CPI, downward bias

JEL Classification: C21, C43, C81, E31, R21

Suggested Citation

Rondinelli, Concetta and Veronese, Giovanni Furio, Housing Rent Dynamics in Italy (February 19, 2010). Bank of Italy Occasional Paper No. 62, Available at SSRN: https://ssrn.com/abstract=1698607 or http://dx.doi.org/10.2139/ssrn.1698607

Concetta Rondinelli (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184

Giovanni Furio Veronese

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
+49 621 189 1886 (Phone)
+49 621 189 1884 (Fax)

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