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Does the rental housing market stabilize the economy?: a micro and macro perspective

Rubio, Margarita; Rubaszek, Michal


Michal Rubaszek


© 2019, The Author(s). The size of the rental housing market in most countries around the globe is small. In this article, we claim that this may be detrimental to macroeconomic stability. We do it in three steps. First, using survey data for Poland, a country with a high homeownership ratio, we discuss microeconomic housing tenure choice determinants. Second, with a panel of 28 EU countries over the period 2004–2017, we provide evidence that the response of house prices to macroeconomic fundamentals is attenuated by the size of the private rental market. Third, we propose a DSGE model in which households satisfy housing needs both by owning and by renting. By simulating the model, we show that reforms enhancing the rental housing market contribute to macroeconomic stability. We conclude by formulating policy recommendations.


Rubio, M., & Rubaszek, M. (2019). Does the rental housing market stabilize the economy?: a micro and macro perspective. Empirical Economics,

Journal Article Type Article
Acceptance Date Jan 30, 2019
Online Publication Date Feb 12, 2019
Publication Date Feb 12, 2019
Deposit Date Apr 24, 2019
Publicly Available Date Feb 13, 2020
Journal Empirical Economics
Print ISSN 0377-7332
Electronic ISSN 1435-8921
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Keywords Economics and Econometrics; Statistics and Probability; Social Sciences (miscellaneous); Mathematics (miscellaneous)
Public URL
Publisher URL
Additional Information Received: 15 February 2018; Accepted: 30 January 2019; First Online: 12 February 2019; : ; : The authors declare that they have no conflict of interest.; : This article does not contain any studies with human participants or animals performed by any of the authors.


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