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The Affordability Of Urban And Rural Rental Housing

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  • Lerman, Donald L.

Abstract

This report compares rent-to-income ratios for metropolitan and nonmetropolitan rental households, controlling for income and other demographic characteristics. At the mean income level of approximately $12,000 for the sample, metro households pay approximately 4.5 percent more of their income on rent than do nonmetro renters of similar demographic characteristics. This differential falls to 3.3 percent after one adjusts for differences in urban/rural purchasing power, and it falls to 1.9 percent after one also controls for the quantity of housing consumed. This 1.9-percent rent-toincome differential results solely from differences in the price of housing in metro versus nonmetro areas.

Suggested Citation

  • Lerman, Donald L., 1985. "The Affordability Of Urban And Rural Rental Housing," Staff Reports 277775, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:277775
    DOI: 10.22004/ag.econ.277775
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    References listed on IDEAS

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    1. King, A Thomas & Mieszkowski, Peter, 1973. "Racial Discrimination, Segregation, and the Price of Housing," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 590-606, May-June.
    2. Keith R. Ihlanfeldt, 1982. "Income Elasticities of Demand for Rental Housing: Additional Evidence," Urban Studies, Urban Studies Journal Limited, vol. 19(1), pages 65-69, February.
    3. Robert M. Buckley & Robert A. Van Order, 1982. "Housing and the Economy: Popular Myths," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(4), pages 421-441, December.
    4. John Yinger, 1978. "The Black-White Price Differential in Housing: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 54(2), pages 187-206.
    5. Mayo, Stephen K., 1981. "Theory and estimation in the economics of housing demand," Journal of Urban Economics, Elsevier, vol. 10(1), pages 95-116, July.
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