Rental housing in site I : characteristics of the capital stock at baseline

by C. Peter Rydell

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback113 pages $30.00 $24.00 20% Web Discount

Rental properties in Brown County, Wisconsin, differ in the amounts, mix, and age of physical capital they embody. The diverse characteristics of this capital stock can be summarized by four variables: the quantity of land; the current market price of the land; the quantity of improvements; and the current market price of the improvements. It is shown that residential land prices vary with location; that the prices of capital improvements vary with their age and condition; and that the mix of land and improvements per property systematically varies with the relative prices of these inputs, the elasticity of substitution equaling 0.5 for all types of property. These results are obtained by constructing a CES production function for housing capital and fitting it to data for 1,018 rental properties in Brown County. Future analysis will extend this production function to include services provided by the landlord and will include a larger number of properties.

This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.