Online information search, market fundamentals and apartment real estate

Das, Prashant (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Ziobrowski, Alan (Georgia State University, 35 Broad Street Suite 1404, Atlanta, GA 30303, USA) ; Coulson, N. Edward (University of Nevada Las Vegas, BEH 530A, 4505S Maryland Pkwy, Las Vegas, NV 89154, USA)

We examine the association between online apartment rental searches and fundamental real estate market variables namely, vacancy rates, rental rates and real estate asset price returns. We find that consumer real estate searches are significantly associated with the market fundamentals after controlling for known determinants of these variables. In particular, we show that apartment rental-related online searches are endogenously and contemporaneously associated with reduced vacancy rate. However, the association between the searches and rental rates is not significant. The searches are also contemporaneously associated with positive returns on the appraised values of multifamily assets. There is some evidence that the searches are fundamentally associated with REIT returns in the short run and that REIT investors watch the online search trends to inform their stock pricing decisions


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Date:
2015
Published in:
The journal of real estate finance and economics
Numeration (vol. no.):
December 2015, vol. 51, no. 4, pp. 480-502
DOI:
ISSN:
0895-5638
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2016-03-16, last modified 2018-12-20

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