Arbeitspapier
Differences in quality of life estimates using rents and home values
Quality of life differences across areas can be measured by differences in real wages where real wages are computed as nominal wages adjusted for the cost of living. Computing cost of living differences involves several important issues, including how housing prices should be measured. Previous researchers typically have used some combination of rental payments and homeowner housing values, but housing values are forward-looking and may not reflect current user costs. This paper examines differences in quality of life estimates for U.S. metropolitan areas using, alternatively, rents and housing values. We find that the two measures of quality of life are highly correlated. Value-based estimates, however, are considerably more dispersed than rent-based estimates, likely because of the recent housing bubble and because housing values often provide an imperfect measure of the present user cost of housing. Researchers should be cautious in using housing values to construct quality of life estimates.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 6703
- Classification
-
Wirtschaft
General Equilibrium and Welfare Economic Analysis of Regional Economies
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Subject
-
quality of life
amenities
rents
housing
wages
Lebensqualität
Lebensstandard
Miete
Wohneigentum
Immobilienbewertung
Reallohn
Schätzung
USA
- Event
-
Geistige Schöpfung
- (who)
-
Winters, John V.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Winters, John V.
- Institute for the Study of Labor (IZA)
Time of origin
- 2012
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Exchange rate misalingment estimates: Sources of differences
Exchange rate misalignment estimates: Sources of differences
Implicit Rents from Own-Housing and Income Distribution: Econometric Estimates for Greater Buenos Aires
Cumulative prospect theory version with fuzzy values of outcome estimates
Time distributed difference-in-differences estimates of return to training
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The effects of partisan alignment on the allocation of intergovernmental transfers: differences-in-differences estimates for Spain
PROPERTY - HOUSE RENTS AND FURNITURES
A Selection Model of Hedonic House Values and Rents
External Factors, Housing Values And Rents: Evidence From Survey Data
Exchange rate misalingment estimates: Sources of differences
Exchange rate misalignment estimates: Sources of differences
Implicit Rents from Own-Housing and Income Distribution: Econometric Estimates for Greater Buenos Aires
Cumulative prospect theory version with fuzzy values of outcome estimates
Time distributed difference-in-differences estimates of return to training
Household expenditures, wages, rents
What drives office rents?
Navy Estimates for the Year 1914 - 1915, with Explanations of Differences.
The effects of partisan alignment on the allocation of intergovernmental transfers: differences-in-differences estimates for Spain