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Although the economic literature has analyzed some components of the headship decision, study of household formation has been primarily in the realm of demography. We begin with a pure demographic model and expand it to include additional determinants of the decision to remain with parents or not, to marry or not, and to live with a group or separately. Our results, based on a sample of 2355 youth in their twenties, indicate that (1) rental costs, wealth, and the potential wage that a youth could earn are important variables in explaining the outcomes of these choices am (2) including the economic variables significantly changes the estimated impacts of the demographic variables. One insight that the expanded economic model allows is the prediction that some public policies will affect headship rates of youth. This prediction is of interest because choices of living arranqements often have implications for demands upon public services and housing. We use as an example the 1986 Tax Reform Act and focus on a single outcome: the expectation of higher rental costs. If rentals rise by 20 percent, as predicted by some tax analysts, we estimate a half million reduction in the number of 1986 households formed by youth ages 21 to 29.

Rental housing

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Examines the economics of owning and operating rental property from the viewpoint of the landlord in two midwestern housing markets. Increased cost factors during the time of the study (1973-1977) included greatly increased energy costs, price of repairs, and a sharp increase in operation inputs (labor). The prices of capital and land fell during the time period. The portion of gross rent that landlords receive for owning a property constitutes a relatively small fraction of their equity income. Landlords in both sites made most of their money through appreciation in property values. Tax benefits help wealthy landlords and do not help the poorer ones. Subsidies that lower capital or operating costs for all rental properties succeed in treating comparable households similarly. Housing allowances provide benefits directly to needy renters. The benefits reach landlords as reduced vacancy losses, fewer bad debts, or in tight markets, higher rent levels. By increasing rates of return in the lower part of the market, housing allowances concentrate growth in supply, where it is needed most.

Rental housing

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Rental housing.

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This work presents a conceptual framework to allow a critical study of comparative rental markets. The framework centres around the concept of the process of maturation of cost rental housing and two policies for handling this which have been adopted by industrial societies.

Rental housing. --- Rental housing --- Government policy.

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The Housing Assistance Supply Experiment (HASE) was undertaken primarily to demonstrate how a full-scale housing allowance program would affect local housing markets; in particular, how it would affect the price of housing services. If program-induced price increases were large, they would disrupt the housing market and divert program subsidies from their intended recipients. In the outcome, however, price effects caused by the experimental program were so small as to be negligible. Section II examines the changes in the price of rental housing services that occurred in the experimental sites during the first three years of the allowance program. Section III determines that the allowance program had such a small effect on housing prices because it caused only a modest increase in housing demand and because housing supply responds to demand shifts with surprising ease. Section IV assesses the generalizability of the price effects found in the HASE sites, and discusses ways in which the results improve the understanding of housing-market behavior

Rent subsidies --- Rental housing