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Can Internet Ads Serve as an Indicator of Homeownership Rates?

28 Pages Posted: 4 Nov 2011  

Konstantin A. Kholodilin

German Institute for Economic Research (DIW Berlin)

Andreas Mense

FAU Erlangen-Nürnberg

Date Written: October 31, 2011

Abstract

In this paper, we propose an indicator of the homeownership rate based on Internet ads offering the housing for rent and sale. We constructed the HOR estimate using the number of ads in four different markets (flats for rent, flats for sale, houses for rent, and houses for sale). Our HOR indicator was tested using data of German NUTS1 and planning (ROR) regions. The correlation between our estimate of the HOR and the alternative HOR figures varies between 0.834 and 0.874 at NUTS1 level and is 0.761 at the ROR level. All correlation coefficients are statistically significant. Our HOR estimate is particularly highly correlated with the official HOR figures. Thus, it is shown that our Internet-based indices could serve as a good indicator of the homeownership rate in German regions.

Keywords: Internet ads, homeownership rate, German regions, NUTS, planning regions

JEL Classification: C21, O47, R11

Suggested Citation

Kholodilin, Konstantin A. and Mense, Andreas, Can Internet Ads Serve as an Indicator of Homeownership Rates? (October 31, 2011). DIW Berlin Discussion Paper No. 1168. Available at SSRN: https://ssrn.com/abstract=1954628 or http://dx.doi.org/10.2139/ssrn.1954628

Konstantin A. Kholodilin (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Andreas Mense

FAU Erlangen-Nürnberg ( email )

Findelgasse 7
Nürnberg, 90402
Germany

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