Evaluation of impact of the Covid-19 pandemic on rental housing prices in the city of Brno between 2020 and 2021

Petr Junga,Tomáš Krulický,Veronika Machová,Radka Smolinská

doi:10.1051/shsconf/202213201024

Petr Junga, Tomáš Krulický + Show 2 more

Open Access

https://doi.org/10.1051/shsconf/202213201024

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Abstract

The aim of the paper is an application of the basic principles in determining rental housing prices and factors that may affect them. In the experimental part, an analysis of rental housing in the city of Brno is performed for the 2020 – 2021 period affected by the covid-19 pandemic. The analysis is processed for individual city districts and divided according to apartment layout. Finally, all outputs are compared and the real estate market development is determined with a focus on the biggest changes and their occurrence.

Highlights

At present, there are several basic options on the market for addressing housing needs
The experimental part of this paper is focused on evaluating price development on the apartment rental market in the city of Brno monitored between June 2020 and May 2021 and affected by the Covid-19 pandemic
Included are results of the Real Estate Market Analysis in the city of Brno carried out on the basis of apartment classification according to several basic characteristics, i. e. city districts, apartment layout and apartment conditions

Summary

Introduction

There are several basic options on the market for addressing housing needs. One of the most sought alternatives is owner-occupied housing, while the other common one is rental housing, where determining rent prices depend on many factors. The Covid-19 pandemic emerged very suddenly, and the majority of real estate experts feared a decline in property prices similar to 2007. SHAP values were used to apply given models, with the values obtained subsequently coming to conclusion that time is the most dominant and consistent variable for the real estate market, renting [2] claim that the rental housing market span is very small worldwide. Macroeconomic damage to the market stability is reported. The authors simulate a model where macroeconomic stability is represented by reforms strengthening the rental housing market.

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