Does housing market segmentation ensure families a rental price benefit? The example of Frankfurt, Germany

Abstract

Housing market segments are commonly differentiated based on the structural and spatial attributes of their dwellings. A sociological perspective highlights the fact that housing market segments can also arise along socio-economic characteristics of demanders. This can explain why and how particular groups of tenants are disadvantaged or favoured in terms of the rental prices they pay for comparable rental properties. This article illustrates this idea using the example of families with minor children. Exceptionally rich data collected in Frankfurt am Main, Germany, provides detailed measurements for housing conditions. The findings indicate that families in Frankfurt are beneficiaries of segmentation, with respect to the rental prices they pay. However, the extent of the benefit varies between local and specific structural submarkets.