Rental housing market segmentation in Germany according to ownership

Abstract

We analyze landlord market heterogeneity in the German rental housing market. Using data from the German Social‐Economic Panel survey for the years 2000–2005, we firstly identify significant differences in implicit prices for housing attributes between private, public, and association landlords in a cross‐section analysis through comprehensive segmentation testing. Based on that, we secondly present a balanced panel analysis for the entire period to investigate market price heterogeneity over time. In general, we detect the length of residence and the building size as the most important determinants for landlord segmentation. Most notably, differences between private and non‐private landlords are identified.