Location Matters Most: Rent Prices Driven by Initial Relative Level
The article examines factors influencing changes in rent prices for rental units from 2001 to 2007. They found that initial rent level is the best predictor of rent growth, mainly due to mean reversion. Location also plays a significant role, with age and occupancy duration being notable factors as well. The study helps improve understanding of the rental market and assists statistical agencies in decision-making.