Impact of decentralized long-term rental apartments on the value of community housing--taking Tianjin, China, as an example

Abstract

Purpose This study aims to explore the impact of decentralized long-term rental apartments on the value of in-community housing from two perspectives of housing price and rent. Design/methodology/approach This study uses the hedonic model to identify the factors affecting the housing value, and the influence of distributed long-rented apartments on the housing value in the community is analyzed from two aspects of housing price and rent by using the ordinary least square method and propensity score matching method. Findings The primary finding indicates that decentralized long-term rental apartments increase housing prices while decreasing general rental housing rents in the community, with the average degree of increase ranging from 0.93% to 2.59% and the average degree of decrease ranging from 2.23% to 4.34%. According to additional research, the prices of houses within communities rise by 0.042% for every 1% increase in the share of decentralized long-term rentals, while the rents for other types of rental property fall by 0.162%. Practical implications The government can regulate the housing market by regulating the access and layout of distributed long-rent apartments. Originality/value The findings of this study indicate that the existence and share of distributed long-rent apartments have a heterogeneous impact on the housing price and rent in the community, respectively.