IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v16y1988i4p354-363.html
   My bibliography  Save this article

Advertising and Natural Vacancies in Rental Housing Markets

Author

Listed:
  • Colin Read

Abstract

We formulate a model that explains vacancy durations arising from lags in matches between the suppliers and demanders of housing units. We emphasize rental housing markets in this exposition although the model could be extended to competitive or noncompetitive rental or home‐ownership markets. In the case of rental markets, if tenants do not immediately inform landlords upon initiating search for a new unit, landlords are delayed in their search for a new tenant. These matching delays induce a positive natural vacancy rate that cannot be reduced to zero, even in competitive markets. Price‐taking landlords are, however, able to affect the resulting vacancy duration through advertising in a Cournot‐Nash equilibrium and will, in general, invest in inefficient levels of advertising. As a consequence, there may be a role for public policy to provide incentives that would induce noncooperative landlords to choose the vacancy cost‐minimizing advertising solution.

Suggested Citation

  • Colin Read, 1988. "Advertising and Natural Vacancies in Rental Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 354-363, December.
    • Handle: RePEc:bla:reesec:v:16:y:1988:i:4:p:354-363
    DOI: 10.1111/1540-6229.00460
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.00460
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.00460?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/9023 is not listed on IDEAS
    2. repec:spo:wpecon:info:hdl:2441/8988 is not listed on IDEAS
    3. Gabriel Desgranges & Étienne Wasmer, 2000. "Appariements sur le marché du logement," Annals of Economics and Statistics, GENES, issue 58, pages 253-287.
    4. Etienne Wasmer, 2005. "Housing market discrimination, housing regulations and intermediaries," Post-Print hal-01053551, HAL.
    5. Forgionne, G. A., 1996. "Forecasting army housing supply with a DSS-delivered econometric model," Omega, Elsevier, vol. 24(5), pages 561-576, October.
    6. Joseph L. Pagliari, Jr. & James R. Webb, 1996. "On Setting Apartment Rental Rates: A Regression-Based Approach," Journal of Real Estate Research, American Real Estate Society, vol. 12(1), pages 37-62.
    7. repec:hal:wpspec:info:hdl:2441/9023 is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/8988 is not listed on IDEAS
    9. Rose Lai & Ko Wang & Jing Yang, 2007. "Stickiness of Rental Rates and Developers’ Option Exercise Strategies," The Journal of Real Estate Finance and Economics, Springer, vol. 34(1), pages 159-188, January.
    10. Rena Sivitanidou, 1999. "Office Rent Processes: The Case of U.S. Metropolitan Markets," Working Paper 8664, USC Lusk Center for Real Estate.
    11. repec:spo:wpecon:info:hdl:2441/9023 is not listed on IDEAS
    12. Etienne Wasmer, 2005. "Housing market discrimination, housing regulations and intermediaries," SciencePo Working papers hal-01053551, HAL.
    13. repec:spo:wpmain:info:hdl:2441/9023 is not listed on IDEAS
    14. Carolin Fritzsche & Lars Vandrei, 2018. "Causes of Vacancies in the Housing Market – A Literature Review," ifo Working Paper Series 258, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    15. Gabriel Desgranges & Étienne Wasmer, 2000. "Appariements sur le marché du logement," Annals of Economics and Statistics, GENES, issue 58, pages 253-287.
    16. Viggo Nordvik, 2000. "Utilisation of the Stock of Owner-occupied Single-family Houses: An Econometric Analysis," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1171-1183, June.
    17. Lawrence Kryzanowski & Yanting Wu, 2023. "Signaling effects of recurrent list‐price reductions on the likelihood of house sales," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 46(1), pages 99-130, February.
    18. repec:hal:wpspec:info:hdl:2441/8988 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:16:y:1988:i:4:p:354-363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.