Rental Housing Sector Research Articles

Implementing housing policies for a sufficient lifestyle

The German buildings sector is currently facing a double challenge: meeting emission reduction targets and providing affordable housing in rapidly growing cities. Living space per person has a major impact on household energy consumption and it has increased significantly in recent decades. New construction increases the demand for often energy-intensive building materials, and energy demand during the use phase of buildings is positively related to the size of the space. Optimising the allocation of living space therefore offers great potential for addressing both challenges. Sufficiency policies such as flat exchanges, a financial bonus for moving and the provision of moving advice aim to reduce the total floor area in the housing sector by using existing space more efficiently. However, the effectiveness of such measures is not yet fully understood. As the sufficiency approach relies heavily on individual choices, residents’ involvement, perception and acceptance are crucial for the success of such measures. An investigation in selected German housing companies shows that the potential of these measures is not fully exploited under the current political and social framework in Germany. Social acceptance, new norms and business models for landlords are needed for the effective use of these measures. Policy relevance How effective is the implementation of sufficiency measures for space utilisation in the German rental housing sector? The success factors and limiting barriers of the measures along with the acceptability and effectiveness of these measures are investigated by interviewing housing companies (some of them social housing providers) that have the potential to implement such policies in their housing stock. Improvements are needed in the social and technical infrastructure to increase the effectiveness of the measures. Raising awareness, rethinking communications and designing effective financial incentives are recommended to make the measures attractive to the public. Involving all stakeholders, keeping the issue on the political agenda and engaging in dialogue with policymakers are considered effective steps in the process of achieving space sufficiency in the housing sector.

‘I wouldn't change my flat for anything’. Is there scope for more people with learning disabilities to rent their own homes?

AbstractBackgroundPolicy, research, and people's own experience in the UK consistently highlight the central importance of a home of choice for people with learning disabilities. Yet attention is mainly focused on the development of specialist as opposed to generic housing options for people with learning disabilities.MethodsThis article reviews the findings from a major research study looking at the rented housing sector for people with learning disabilities. The study comprised of a review of local authority learning disability strategies; a ‘national conversation’ with key stakeholders; and thirty‐five, qualitative interviews with people with learning disabilities who rent their own homes.FindingsThe research found that local learning disability strategies are lacking in information on rented housing for people. A national consultation identified a range of challenges in accessing rented housing for people wishing to do so. Interviews with people with learning disabilities renting their own place confirmed some of these problems but also, crucially, highlighted the success for most who rented their own home. People liked renting and were managing their tenancies well with relatively modest support.ConclusionsThe evidence points to the possible benefits of a greater focus on renting for people with learning disabilities.

Feminist perspectives on housing financialisation: The case of the German social rental housing sector

This paper explores the financialisation of housing in Germany’s social rental housing sector, focusing on the lived experiences of tenants. Drawing on a relational feminist lens, the study examines how macro-level policy shifts, financialised management practices, and tenants’ lived experiences intersect to drive housing precarity. Through the case study of Vonovia, Germany’s largest financialised landlord, the paper illustrates how institutional investors maximise profits by upgrading properties, increasing rents, and displacing vulnerable tenants. The research, based on tenant interviews and document analysis, sheds light on the emotional and material impacts of housing financialisation and the growing disconnect between tenants and their homes. The findings reveal that the financialisation of social rental housing undermines social cohesion, disrupts everyday life, and deepens feelings of alienation and fragmentation

Locational, neighbourhood and physical characteristics of residential rental properties: A review

The residential rental market plays a crucial role in housing provision, yet our understanding of its locational, neighborhood, and physical characteristics remains limited. This paper presents a comprehensive review of existing literature pertaining to these fundamental aspects of residential rental properties. By synthesizing findings from a wide range of academic studies and reports, we aim to shed light on the key factors that influence the rental property landscape. The study strategically explores the locational attributes that impact rental property preferences and values. This includes proximity to essential amenities such as schools, hospitals, public transportation, and commercial centers. Understanding how these locational factors influence rental demand and pricing patterns can provide valuable insights for both renters and landlords., Investigate the role of neighborhood characteristics in shaping rental markets. Neighborhood safety, accessibility to recreational areas, quality of public services, and social demographics are among the key factors that influence rental property selection. By analyzing these features, we identify potential correlations between neighborhood attributes and rental property performance., the study delves into the physical characteristics of residential rental properties. This aspect involves examining the features of the properties themselves, such as property size, layout, age, and amenities. Understanding how these physical attributes affect rental values and tenant satisfaction can help property owners optimize their investments and improve tenant retention. Moreover, in this study the review addresses the dynamic interplay between locational, neighborhood, and physical factors in shaping rental property markets. By recognizing the complex relationships between these variables, policymakers, real estate developers, and investors can devise informed strategies to create sustainable and inclusive rental housing solutions. The paper concludes with a call for further research in this field, emphasizing the need for empirical studies that capture changing rental market dynamics, especially in the context of evolving urban landscapes and housing preferences. Through this comprehensive review, we aim to contribute to a deeper understanding of locational, neighborhood, and physical characteristics in residential rental properties, thus enabling more effective and evidence-based decision-making within the rental housing sector.

Change in the Affordability of Owner-Occupied Housing in the Context of Rising Energy Prices

Household energy constitutes an important share of affordable housing. Unaffordable housing and inadequate household energy represent a new dimension of poverty. Connections between energy, housing affordability and well-being are still under-researched. Building on housing affordability framework, this study explores the magnitude in changes in affordability of acquisition and use of an apartment between January 2018 and January 2022. Over the last four years, the real estate market in Europe has changed significantly. This paper deals with primary data for the Czech Republic, where acquisition prices of residential real estate increased depending on the region in the range of 50 to 120%. Since January 2022, there has been a sharp rise in energy prices and a tightening of conditions for the acquisition of mortgage loans. All these factors affect the standard of living in the Czech Republic. The article quantifies the magnitude of this change by calculating shares of total housing costs to total average net household income for the period January 2018 and January 2022. It is found that the affordability of owner-occupied housing in the Czech Republic has deteriorated and part of the middle class will be forced to move to the rental housing sector, multifamily housing and sharing. Finally, we argue that energy poverty needs to be considered in addressing the government housing policies. The aim of the article is to analyze the changes that have taken place in the real estate market over the last four years in relation to the growth of total housing costs and energy costs associated with housing.

An Australian rental housing conditions research infrastructure

Each year the proportion of Australians who rent their home increases and, for the first time in generations, there are now as many renters as outright homeowners. Researchers and policy makers, however, know very little about housing conditions within Australia’s rental housing sector due to a lack of systematic, reliable data. In 2020, a collaboration of Australian universities commissioned a survey of tenant households to build a data infrastructure on the household and demographic characteristics, housing quality and conditions in the Australian rental sector. This data infrastructure was designed to be national (representative across all Australian States and Territories), and balanced across key population characteristics. The resultant Australian Rental Housing Conditions Dataset (ARHCD) is a publicly available data infrastructure for researchers and policy makers, providing a basis for national and international research.

An Unused Opportunity: The Activity of National Asset Managing Shared Company in Hungary

The main purpose of the paper was to analyse the effect of a specific governmental programme using the different statistical levels and hierarchical classes, to identify the main focus, of spending public sources (Home Protection Action Plan). The paper suggest, that the settlement hierarchical focus of National Asset Managing Shared Company (NET) turned to small and medium sized towns. The spatial focus of NET followed the economic and social crisis regions (on NUTS2 and 3 levels) quite well, these units concentrated a high number of bought flats/houses and high level of NET’s investments. The activity of NET in the late crisis period (2013-2015) played crucial role in stabilising the activity of housing markets in villages and small towns in the Eastern regions. The NET bought appr. 36.000 appartments, family houses and all these stock went under direct state ownership. The former owners used their flats s renters, with a highly reduced fee. This legal form offered an opportunity to began redirecting the very weak social rental housing sector in Hungary, which became marginal after the mass privatisation of flats in the 1990s. As we try to point out, this unique opportunity was missed by the national government, when after a few years of global fiscal crisis the dominant share of these flats were offered to rebuy by the former owners. This decision strengthen the ownership based housing regime in Hungary and make the housing affordability much difficult for the younger generation a poorer families.

A CRITICAL ANALYSIS OF THE DECISION OF THE CONSTITUTIONAL COURT* Maphango v Aengus Lifestyle Properties (Pty) Ltd 2012 (3) SA 531 (CC)

The pursuit of access to better economic opportunities such as decent jobs has resulted in an astronomic influx of people into the inner city of Johannesburg, South Africa. As a result there is a high demand for rental housing. This presents an opportunity to make profit for those who leasepremises in order to generate an income. The demand for rental housing has arguably caused the escalation of rental prices, thereby causing a shortage of affordable rental housing in the city centre. The Rental Housing Act 50 of 1999 was enacted to resolve disputes that may arise from any unfair practice or matters affecting the relationship between the landlord and his tenants in respect of the lease contract. In particular, the Rental Housing Act seeks inter alia to “create mechanisms to promote the provision of rental-housing property; promote access to adequate housing through creating mechanisms to ensure the proper functioning of the rental-housing market [and] to lay down general principles governing conflict resolution in the rental-housing sector” (Preamble to the Rental Housing Act). In terms of the Rental Housing Act, the landlord or a tenant may approach the RentalHousing Tribunal and complain about an unfair practice (s 13 of the Rental Housing Act). The Rental Housing Act defines an unfair practice as “a practice unreasonably prejudicing the rights or interests of a tenant or a landlord” (s 1 of the Rental Housing Act). Where the Tribunal, at the conclusion of the hearing, is of the view that an unfair practice exists, it may rule that the exploitative rental be discontinued. The Tribunal may also make a determination about the amount of rental that must be paid by a tenant taking into account inter alia “the need for a realistic return on investment for investors in rental housing”. The argument presented in this case is that the applicants ought to have made up their case in the court of first instance and not at the appellate stage. The paper isdivided into nine sections. Section 2 provides an overview of the facts of the case, section 3 discusses the case before the High Court, section 4 discusses the case before the Supreme Court of Appeal (SCA), section 5 discusses the case in the Constitutional Court, the issues, arguments, before the court, the findings and conclusions of the court. Section 6 evaluates the parties’ submissions in light of the Rental Housing Act, the Constitution, the Gauteng Unfair Practices Regulations, and the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIEA) (19 of 1998). Section 7 discusses the majority judgment. Section 8 discusses the minority judgment. Section 9 is a critique of both the minority and majority judgments. The conclusion made is that the applicants should stand or fall by the arguments contained in the founding documents.

The financialization of rental housing in China: A case study of the asset-light financing model of long-term apartment rental

This paper offers a timely exploration of the ongoing financialization process in the Chinese rental housing sector, focusing on the financial means used by the asset-light “long-term apartment rental” (LAR) firms in this industry. Particular attention is given to an important financial product – “rental loan” – which accumulates capital pool through tenancy assetization. Using Shanghai as a case study, the paper also examines financial risks and tenants’ vulnerability embedded in the new financing strategies used by asset-light LAR firms. Our findings enrich the knowledge of the heterogeneity of financialization as well as the various impacts of financialization on housing rights and urban governance. This work engages with the literature of housing financialization by critically discussing the patterns and consequences of the financialization of rental housing.

Examining green affordable housing policy outcomes in Australia: A systems approach

The Australian affordable rental housing sector has historically faced barriers to green building (GB) adoption due to issues of split-incentives, despite financial support from the commonwealth. This paper explores how a recent shift towards bond-based funding mechanisms offer an opportunity to integrate green building practices, and influence regional social, environmental and economic outcomes. A novel system dynamics model is developed to forecast a business as usual (BAU) and green-building scenario framed around the recently introduced Australian Affordable Housing Bond Aggregator (AHBA) policy framework. The purpose of the model is to examine how a mandate on green building standards together with the use of green versus conventional bonds impact social, environmental and economic outcomes of the framework over a 20-year horizon, within the South East Queensland metropolitan area of Australia. The study determined that the green building framework would deliver 2.37% less housing overall due to higher initial capital costs. However, offers substantial long-term energy and water efficiency benefits, improved affordability for tenants due to reduced utility costs, deferred water and energy infrastructure benefits, and considerable contributions towards Australia’s carbon emission reduction targets. Tenants are expected to benefit from a 45–59% reduction in energy and a 27% decrease in water bills. Moreover, a shift to affordable green building policy could contribute to 2.9% of Australia’s Conference of Parties (2030) carbon emissions reduction target if applied nationally. The study concludes with a sensitivity analysis to reveal policy refinement recommendations that would yield the benefits of green affordable housing without sacrificing the small reduction in housing stock delivered by the proposed program.

The carrot and the stick: Policy pathways to an environmentally sustainable rental housing sector

As the impacts from climate change are progressively being felt around the globe, there is an increasing urgency in the need for policymakers to find ways to reduce greenhouse gas emissions. The rental housing sector offers one such clear opportunity to reduce CO2 emissions. However, there has been a lack of consensus regarding the policies that would best deliver a sustainable rental sector. Building on calls in the literature to examine policy mix solutions for this conundrum, a Policy Delphi methodology, using both qualitative and quantitative techniques, identified seven key policy areas. These were divided into carrot policies (tax incentives, rebates and grants); cusp policies, that are neither clearly carrot nor stick, but often have a leaning towards one or other (loans, energy arrangements, improved rental rights); and stick policies (minimum standards, mandatory disclosure). Minimum performance standards, rebates and tax incentives were identified as the most effective policy solutions by the expert panel. Findings suggest that any policy mix should include both carrot and stick policies. When integrated with the existing ‘enabling forces’ literature, a model emerges that highlights the policy pathways to an environmentally sustainable rental housing sector.

Market Rent Determinants of Residential Apartments in Addis Ababa, Ethiopia

Rapid urbanisation and population growth increase the demand for housing. Given its importance to human wellbeing, the right to housing is recognised in international, regional and domestic legislation. The rental housing sector is the major form of housing tenure in Ethiopia. Given financial constraints, Ethiopian tenants tend to rent instead of buying property. However, there are no well-developed procedures that guide how rental value is determined in Ethiopia. As such, the purpose of this study is to identify monthly rent determinant variables of residential apartments in Ethiopia. Substantial empirical results from different countries indicate that rental value is a result of the combined contribution of the integrated components: property, amenities, and externalities. For this study, a multiple regression model was used for 164 samples taken from three purposefully selected case study areas in Addis Ababa (CMC, Jemo and Kazanchis). The regression results indicate that nine significant variables were determinant variables of monthly rent at a 95% confidence interval. This study may contribute decisive information for Ethiopian property managers, real estate developers, income tax assessors, real property owners, lending institutions and other interested real estate professionals. It allows these stakeholders to more accurately estimate the monthly rental value and market value of properties for their business evaluation.

Towards an environmentally sustainable rental housing sector

Rental houses in Australia represent approximately one third of all homes, and this proportion has been growing over recent decades. However, the quality, comfort and environmental credentials of these houses are often poor, particularly when compared to owner-occupied homes. With climate change, the urgency increases to move to a more sustainable built environment. Consequently, exploring how to make rental properties more sustainable warrants further investigation and action. Using data gathered from a broad range of experts through a four-stage Policy Delphi technique, findings reveal four key enabling forces: communication, facilitation, incentivization, and regulation. These forces both influence and are influenced by rental market conditions. A conceptual framework is presented which highlights the interplay between the stakeholders and enabling forces, which has the potential to lead to a Win-Win-Win scenario for landlords, tenants and the environment. With a clear social and environmental imperative to move to a more sustainable rental sector, this research presents a pathway to reach this goal.

Migration and inequality in rental housing: Affordability stress in the Chinese cities

Housing affordability is a widely accepted notion used to assess the housing poverty problem in the Global North and South. China is experiencing an unprecedented urban revolution, with two-thirds of its 250 million migrants now being sheltered in the private rental housing sector of the receiving cities. The discriminatory hukou and an exclusive public housing system with appalling living conditions for migrant housing have been a huge challenge in contemporary China. In this paper, we aim to examine the state of housing affordability inequality in the current rental market for all of China and provide policy recommendations for a more accessible and equitable migrant housing provision system. On the basis of China's Migrant Dynamics Monitoring Survey (MDMS) conducted in 2011 and 2016, this paper analyzes the dynamic spatial inequalities of the rent affordability stress (rent-to-income ratio) among migrants from 2011 to 2016 across China's prefecture-level cities and above. We use CV, Gini and Theil indices to investigate the interregional, interprovincial and inter-prefectural inequalities of migrant rent stress, and then adopt spatial autocorrelation to examine the regional variance for these urban units. Our study reveals the convergence of rent stress inequality at different geographical scales and an increasingly apparent north-south divide in housing affordability inequality in the rental market accessible to the migrant workers of China. The agglomeration of the high rent-stress migrants in the “local buzz” in China is found, too, which is closely associated with policy and economic factors, as well as being embedded in the hierarchical structure of the Chinese urban administrative system and the contrasting urbanization paths of the north and south, and of the rustbelt and sunbelt.

Do renters skimp on energy efficiency during economic recessions? Evidence from Northeast Scotland

This paper investigates tenants' willingness to pay (WTP) for energy efficiency in the private rented housing sector. Using data from Aberdeen city and Shire in Scotland between the third quarter of 2013 and the second quarter of 2017, rent premiums of 2–11% associated with more energy efficient dwellings are found, and the magnitudes of these premiums are considerable compared to those of other physical attributes. Such premiums however, are significantly reduced during economic recession, suggesting that tenants' WTP for energy efficiency varies under different economic conditions. From a methodological perspective, the study uses a multilevel model, where the unobservable neighbourhood and age effects are approximated. Our results implicate that although tenants’ WTP for more energy efficient is present, there still might be a need for public strategy to facilitate the improvement of energy performance in the private rented sector.

Enclave Tenement Trap

This article investigates the housing process of ethnic minorities in Hong Kong. The study is an attempt to explain how these minority ethnic groups are filtered and trapped in the private rented housing sector in inner city enclaves. Focus group and in-depth interviews are used to study the low-income Pakistani and Nepalese migrants in two districts in Hong Kong. Affordability, discrimination and locational consideration draw the Pakistani and Nepalese families towards the private rented sector in tenement slums. A model of enclave tenement trap is built based on empirical research conducted in Hong Kong. The model and findings provide directions for civil society institutions and housing policy.

Vulnerable Adults in the Privately Rented Sector in England: A Snapshot of Current Practice Issues

In the UK, in common with many developed countries, there is a crisis in the provision of adequate, affordable and quality housing. This paper discusses how an unprecedented rise in the privately rented housing sector has impacted on housing security for vulnerable adults and the challenges for social work emerging from this situation (The core definition of ‘vulnerable adult’ from the 1997 Consultation ‘Who Decides?’ issued by the Lord Chancellor’s Department, is a person: ‘Who is or may be in need of community care services by reason of disability, age or illness; and is or may be unable to take care of unable to protect him or herself against significant harm or exploitation’. This definition of an adult covers all people over 18 years of age.). We report on a scoping review of the relevant literature and a subsequent online survey of practitioner’s views on the challenges and possible solutions to this issue. Together these provide a snapshot of practice issues and concerns which can be used to promote further debate and help shape recommendations.

Quality of Life (QoL) Survey in Hong Kong: Understanding the Importance of Housing Environment and Needs of Residents from Different Housing Sectors.

This study presents a Quality of Life (QoL) survey to understand the influence of the housing environment and needs of residents from different housing sectors. The research focuses on Hong Kong where living conditions have become the main affect for people’s QoL. Through a household survey using a standard instrument “Word Health Organisation (WHO) Quality of Life-BREF”, the article found that among the four WHO QoL domains (Physical Health, Psychological Health, Social Relations And Environment), Environment, particularly its constitute aspect housing environment was the most influential factor for overall quality of life for the public rental housing sector where low-income people live. This research also found that different groups of people have differing needs of their housing environments: the low-income group needs better location and privacy while the medium and high-income groups need better architectural quality. Based on differentiating their needs and wants, this research argues for prioritizing the low-income group’s needs for effectively improving their QoL.

ANALYSIS OF FACTORS INFLUENCING REPORTED HOUSING MAINTENANCE COSTS IN SWEDEN’S PUBLIC AND PRIVATE RENTAL SECTORS

The reported maintenance costs per unit area within the public rental housing sector in Sweden are consistently higher than those within the private rental sector. This paper uses crosssectional panel data analysis as well as a questionnaire survey sent to 196 managers in the private and public housing sectors to identify the factors that might explain this divergence. The findings indicate that “fundamental” factors such as the age of the houses or the composition of the tenants cannot explain the observed difference. However how the activities are classified and the timing of the measures are factors that can. The conclusions from the study are that the public companies should act more as the private sector in their accounting; wait longer than they currently do before carrying out some renovations; and that they should be more stringent when determining the resources to spend on large-scale maintenance and/or renovation projects.

Identifying Distributive Injustice Through Housing (Mis)Match Analysis: The Case of Social Housing in Amsterdam

In this paper, an analytical model for measuring match and mismatch between social housing units and their tenants is presented and applied to the social rented housing sector of Amsterdam, The Netherlands. Through the use of a large set of unique micro-data combining housing unit and household characteristics, mismatches on two key dimensions of physical adequacy and affordability and for different household types and parts of the city can be revealed. Empirically assessing the (mis)match of social housing units at a small scale – where socio and spatial (mis)matches manifest – creates opportunities for innovation in the analysis of effects of market mechanisms and local housing allocation policies. An improved understanding of these mismatches based on a strong empirical base can be related to and evaluated against different principles of distributive justice. The findings for the case of Amsterdam show that the famous large social housing stock incorporates significant mismatches. Households in the least popular parts of the city comparatively do not live affordably and large inequities exist between households based on length of residence. These findings offer a basis for further exploration of the complex of housing allocation, changing housing distributions and the resulting outcomes in terms of distributive justice.