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A private rental sector paradox: unpacking the effects of urban restructuring on housing market dynamics

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  • Kath Hulse
  • Judith Yates

Abstract

The private rental sector (PRS) is growing in many advanced economies due to declining home ownership and retrenchment in social housing. This paper examines changes in the PRS in the context of housing market change and ongoing urbanisation processes. Using the example of Australia, it identifies a paradox when examining detailed changes in PRS composition between 1996 and 2011. Increasing demand from higher and lower income households has occurred alongside increasing concentration of supply in mid-market segments. The paper discusses possible explanations of this mismatch. It suggests that middle/higher income households rent through a mixture of constraint and choice in areas with a high level of amenity, adding to understanding of gentrification of inner-city areas. Urban restructuring, evident in increased land values in inner areas of large cities, has resulted in limited ‘filtering down’ of older housing into low-rent private rental stock and a concentration of investment in supply in mid-market segments with greatest prospects for resale and rental.

Suggested Citation

  • Kath Hulse & Judith Yates, 2017. "A private rental sector paradox: unpacking the effects of urban restructuring on housing market dynamics," Housing Studies, Taylor & Francis Journals, vol. 32(3), pages 253-270, April.
    • Handle: RePEc:taf:chosxx:v:32:y:2017:i:3:p:253-270
    DOI: 10.1080/02673037.2016.1194378
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    References listed on IDEAS

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    1. Rik de Boer & Rosamaria Bitetti, 2014. "A Revival of the Private Rental Sector of the Housing Market?: Lessons from Germany, Finland, the Czech Republic and the Netherlands," OECD Economics Department Working Papers 1170, OECD Publishing.
    2. Edward Ludwig Glaeser & Albert Saiz, 2003. "The rise of the skilled city," Working Papers 04-2, Federal Reserve Bank of Philadelphia.
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    Cited by:

    1. Matthew Palm & Katrina Eve Raynor & Georgia Warren-Myers, 2021. "Examining building age, rental housing and price filtering for affordability in Melbourne, Australia," Urban Studies, Urban Studies Journal Limited, vol. 58(4), pages 809-825, March.
    2. Aveline-Dubach, Natacha, 2022. "The financialization of rental housing in Tokyo," Land Use Policy, Elsevier, vol. 112(C).
    3. Caroline Dewilde, 2018. "Explaining the declined affordability of housing for low-income private renters across Western Europe," Urban Studies, Urban Studies Journal Limited, vol. 55(12), pages 2618-2639, September.
    4. Mandy HM Lau, 2019. "Lobbying for rent regulation in Hong Kong: Rental market politics and framing strategies," Urban Studies, Urban Studies Journal Limited, vol. 56(12), pages 2515-2531, September.
    5. P. S. Morawakage & G. Earl & B. Liu & E. Roca & A. Omura, 2023. "Housing Risk and Returns in Submarkets with Spatial Dependence and Heterogeneity," The Journal of Real Estate Finance and Economics, Springer, vol. 67(4), pages 695-734, November.
    6. Hulse, Kath & Parkinson, Sharon & Martin, Chris & Hayward, Richard Donald, 2018. "Inquiry into the future of the private rental sector," SocArXiv 6sb8r, Center for Open Science.
    7. ViforJ, Rachel Ong & Singh, Ranjodh & Baker, Emma & Bentley, Rebecca & Hewton, Jack, 2022. "Precarious housing and wellbeing: a multi-dimensional investigation," SocArXiv ezf83, Center for Open Science.
    8. Hulse, Kath & Martin, Chris & James, Amity & Stone, Wendy & Hayward, Richard Donald, 2018. "Private rental in transition: institutional change, technology and innovation in Australia," SocArXiv yqbxj, Center for Open Science.
    9. Gurran, Nicole & Hulse, Kath & Dodson, Jago & Pill, Madeleine & Dowling, Robyn & reynolds, margaret & Maalsen, Sophia, 2021. "Urban productivity and affordable rental housing supply in Australian cities and regions," SocArXiv qrdb6, Center for Open Science.
    10. Kath Hulse & Zoë Goodall, 2023. "Reforming the Private Rental Sector: Challenges in the 2020s and Beyond," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(2), pages 240-248, June.
    11. Natacha Aveline-Dubach, 2020. "The Financialization of Rental Housing in Tokyo [La financiarisation des logements locatif à Tokyo]," Post-Print halshs-02440007, HAL.
    12. Lau, Mandy H.M. & Wei, Xueji, 2018. "Housing size and housing market dynamics: The case of micro-flats in Hong Kong," Land Use Policy, Elsevier, vol. 78(C), pages 278-286.
    13. Reynolds, Margaret & Parkinson, Sharon & De Vries, Jacqueline & Hulse, Kath, 2024. "Affordable private rental supply and demand: short-term disruption (2016–2021) and longer-term structural change (1996–2021)," SocArXiv h3tfk, Center for Open Science.
    14. Kath Hulse & Margaret Reynolds, 2018. "Investification: Financialisation of housing markets and persistence of suburban socio-economic disadvantage," Urban Studies, Urban Studies Journal Limited, vol. 55(8), pages 1655-1671, June.

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