Housing rent market: the relevance of a micromarket

Paloma Taltavull de La Paz

University of Alicante, Spain

ERES Yearly ConferenceEindhowen, June, 2011

1June, 2011

Paper topic

• Rent market in Spain is very small: 11,2% of total family homes (census 2001)

• Perception of a tiny market:– Retrictions to mobility– Inefficiencies in housing market

• Is that true?

• Has the market balance in some way to develop micro markets on rent?

June, 2011 2

Agenda

• Introduction

• Aim of the paper

• General overview of Spanish rent market

• Data

• Models: factorial analysis

• Discussion and conclusions

3June, 2011

Research questions

• Small rent market .. To who?. House mkt segmented?

• Type of house rented• The role of a small rent market to:

• Cover mobility needs of population/work market• Cover housing needs

June, 2011 4

Findings

• Small in average but larger in urban areas

• Covering mobility needs

• 2 main types of houses rented

• 5 types of household renting homes

• Factors affecting mobility and quality.. Supply

June, 2011 5

Data description

• Census 2001, microdata

• 92088 observations for all Spain, – Statistically significant of all market

• Information including:– House characteristics… 33, 31 usable– Construction history– Demand features of households renting houses

June, 2011 6

Methodology

• 2 steps:– Cluster analysis to define the typical house

rented– Factor analysis to find the ‘typical’ household

renting homes in Spain

June, 2011 7

RENT MARKET IN SPAIN

June, 2011 8

Introduction

9June, 2011

0

2000000

4000000

6000000

8000000

10000000

12000000

Ownership Rent

OWNERSHIP AND RENT STOCK EVOLUTION IN SPANISH HOUSING STOCK. 1960 - 2001

1950

1960

1970

1981

1991

2001

(EN UNIDADES

Source. INE

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

1950 1960 1970 1981 1991 2001

HOUSING MARKET TENURE PATTERN IN FAMILY HOUSING. OWNERSHIP/RENT RATES

Ownership RENT

( % on total family houses)

Source. INE, Censo de viviendas. Varios años

General overview

10June, 20110,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18,00 20,00

01-Álava02-Albacete

03-Alicante/Alacant04-Almería33-Asturias

05-Ávila06-Badajoz

07-Balears (Illes)08-Barcelona

09-Burgos10-Cáceres

11-Cádiz39-Cantabria

12-Castellón/Castelló51-Ceuta

13-Ciudad Real14-Córdoba

15-Coruña (A)16-Cuenca17-Girona

18-Granada19-Guadalajara

20-Guipúzcoa21-Huelva

22-Huesca23-Jaén24-León

25-Lleida27-Lugo

28-Madrid29-Málaga52-Melilla30-Murcia

31-Navarra32-Ourense34-Palencia

35-Palmas (Las)36-Pontevedra

26-Rioja (La)37-Salamanca

38-Santa Cruz de Tenerife40-Segovia

41-Sevilla42-Soria

43-Tarragona44-Teruel45-Toledo

46-Valencia/València47-Valladolid

48-Vizcaya49-Zamora

50-Zaragoza

SPATIAL DISTRIBUTION OF SPANISH STOCK IN RENT BY PROVINCES. 2001

Rental house stock

Total Housing Stock

( % of total stock and rent stock)

Fte. INE, Censo 2001

General overview

June, 2011 11

0,00 5,00 10,00 15,00 20,00 25,00 30,00

TOTAL01-Álava

02-Albacete03-Alicante/Alacant

04-Almería33-Asturias

05-Ávila06-Badajoz

07-Balears (Illes)08-Barcelona

09-Burgos10-Cáceres

11-Cádiz39-Cantabria

12-Castellón/Castelló51-Ceuta

13-Ciudad Real14-Córdoba

15-Coruña (A)16-Cuenca17-Girona

18-Granada19-Guadalajara

20-Guipúzcoa21-Huelva

22-Huesca23-Jaén24-León

25-Lleida27-Lugo

28-Madrid29-Málaga52-Melilla30-Murcia

31-Navarra32-Ourense34-Palencia

35-Palmas (Las)36-Pontevedra

26-Rioja (La)37-Salamanca

38-Santa Cruz de Tenerife40-Segovia

41-Sevilla42-Soria

43-Tarragona44-Teruel45-Toledo

46-Valencia/València47-Valladolid

48-Vizcaya49-Zamora

50-Zaragoza

RENT MARKET SIZE IN EACH PROVINCE HOUSING MARKET. SPAIN

Rent family houses

( % on each province's housing stock)

Fte. INE, Censo 2001

Melilla

España

Las Palmas

Santa Cruz de Tenerife

Madrid

Ceuta

Girona

A Coruña

Barcelona

Baleares

Cádiz

Asturias

General overview.

Spatial distribution

June, 2011 12

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

Urban area > 500.000 inhabitants

Urban area between 100.001-500.000

inhab.

Urban area between 50.001-100.000

inhab.

Urban area between 10.001-50.000 inhab

Intermediate zone Rural area

SPATIAL DISTRIBUTION OF SPANISH RENT MARKET: URBAN AREAS

Spain

Madrid

Barcelona

Sevilla

Valencia

Zaragoza

(% of TOTAL FAMILY HOMES IN RENT by province)

Fte. INE, Censo de viviendas 2001

Main provinces

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

50,00

Urban area > 500.000 inhabitants

Urban area between 100.001-500.000 inhab.

Urban area between 50.001-100.000 inhab.

Urban area between 10.001-50.000 inhab

Intermediate zone

SPATIAL DISTRIBUTION OF SPANISH RENT MARKET: SMALLER RENT MARKETS

Spain

38-Santa Cruz de Tenerife

15-Coruña (A)

11-Cádiz

33-Asturias

Fte. INE, Censo de viviendas 2001

(% of TOTAL FAMILY HOMES IN RENT by province)

Smaler rent market’s provinces

General overview

June, 2011 13

RENT MARKETS IN SPAIN. 25 EXTREME MUNICIPALITIES RANKING

Numer of homes in

rent

% distribution by tenancy. Rates of total stock of primary homes

OWNERSHIP Municipalities Ownership Ownership

On RENT Municipalities

Number of Primary houses Rent rate

Spain 1614221 82,17 11,38 Spain 14184026 11,38

28079-Madrid 178501 78,56 16,52 31211-Orreaga/Roncesvalles 9 88,89

08019-Barcelona 169137 68,15 28,45 20058-Olaberria 305 56,72

46250-Valencia 32761 83,58 11,89 17096-Llosses (Les) 98 56,12

50297-Zaragoza 29359 83,23 12,96 08177-Quar (La) 21 52,38

07040-Palma de Mallorca 26349 73,79 21,98 17021-Beuda 47 46,81

41091-Sevilla 23451 83,10 10,35 25111-Guixers 57 45,61 35016-Palmas de Gran Canaria 21429 69,72 18,99 08255-Santa Maria de Merlès 43 41,86

29067-Málaga 20882 82,24 12,23 35014-Oliva (La) 4179 40,70

15030-Coruña (A) 19580 71,54 22,75 17014-Vajol (La) 40 40,00

36057-Vigo 18086 71,97 19,36 08216-Sant Jaume de Frontanyà 10 40,00

08101-Hospitalet de Llobregat 14270 81,23 16,24 35034-Yaiza 2340 38,33

33024-Gijón 13470 81,19 13,33 17141-Puigcerdà 2661 36,60

11012-Cádiz 13399 64,69 31,59 28020-Berzosa del Lozoya 69 36,23

18087-Granada 13081 77,16 16,03 35003-Antigua 2103 36,00

38038-Santa Cruz de Tenerife 12658 70,06 20,55 17031-Cabanelles 87 34,48

48020-Bilbao 12441 87,01 9,62 08134-Figaró-Montmany 302 34,44

03014-Alicante/Alacant 11778 84,55 11,40 08272-Sora 64 34,38

47186-Valladolid 11580 85,24 10,60 17098-Maià de Montcal 120 34,17

33044-Oviedo 11504 78,82 15,78 43124-Riba (La) 269 33,83

24089-León 10698 74,06 22,32 35017-Puerto del Rosario 6777 33,63

14021-Córdoba 10276 85,72 10,20 38001-Adeje 8431 33,34

30030-Murcia 9800 85,67 8,47 08081-Fogars de Montclús 117 33,33

08015-Badalona 8822 84,10 12,30 08195-Sant Agustí de Lluçanès 27 33,33

30016-Cartagena 7737 81,77 12,98 26173-Villarroya 3 33,33

General overview: Segmentation

June, 2011 14

0,00

10,00

20,00

30,00

40,00

50,00

60,00

2,00 2,20 2,40 2,60 2,80 3,00 3,20 3,40 3,60 3,80

pers

ons

by r

ent

hous

e

persons by family house

USE DENSITY OF RENT HOUSES IN SPANISH HOUSING MARKET

Series1

High use density of total stockLow use density of total stock

Low use density of

rent market

Ceuta

Melilla

Higher use

density of rent

market

CuencaJaen

Zamora Ciudad Real

Cadiz

Baleares

BarcelonaGironaLas Palmas

Covering mobility

RENT AND MOBILITY RANKING(Ratio between new residents and rented houses) Source: INE

2000 2001 2000 2001

Provinces Provincias

19-Guadalajara 2,08 2,40 05-Ávila 0,87 0,91

03-Alicante/Alacant 1,57 1,83 25-Lleida 0,66 0,90

45-Toledo 1,44 1,56 35-Palmas (Las) 1,00 0,89

04-Almería 1,49 1,50 40-Segovia 0,81 0,87

26-Rioja (La) 1,37 1,40 41-Sevilla 0,93 0,86

16-Cuenca 1,37 1,35 09-Burgos 0,72 0,84

46-Valencia/València 1,22 1,34 20-Guipúzcoa 0,77 0,82

44-Teruel 1,10 1,34 27-Lugo 0,77 0,79

12-Castellón/Castelló 1,19 1,29 21-Huelva 0,88 0,79

31-Navarra 1,24 1,26 38-Santa Cruz de Tenerife 0,81 0,77

30-Murcia 1,25 1,21 07-Balears (Illes) 0,75 0,74

01-Álava 1,06 1,16 37-Salamanca 0,90 0,70

39-Cantabria 1,15 1,13 34-Palencia 0,80 0,69

43-Tarragona 1,24 1,13 36-Pontevedra 0,69 0,66

42-Soria 1,08 1,10 24-León 0,65 0,65

48-Vizcaya 1,07 1,09 23-Jaén 0,78 0,65

28-Madrid 1,09 1,09 15-Coruña (A) 0,68 0,64

22-Huesca 0,84 1,04 14-Córdoba 0,63 0,63

13-Ciudad Real 0,92 1,01 10-Cáceres 0,64 0,59

02-Albacete 0,93 1,00 08-Barcelona 0,54 0,56

32-Ourense 1,07 0,97 06-Badajoz 0,59 0,49

49-Zamora 1,00 0,97 51-Ceuta 0,53 0,48

17-Girona 0,87 0,95 33-Asturias 0,49 0,46

29-Málaga 0,93 0,92 11-Cádiz 0,49 0,44

47-Valladolid 0,74 0,91 50-Zaragoza 0,43 0,44

18-Granada 0,90 0,91 52-Melilla 0,35 0,32

June, 2011 15

Stable living house?

June, 2011 17

YEAR OF ARRIVAL TO RENT HOUSE, SPANISH MARKET 2001

15,5

10,3910,19

7,34

5,12

4,20

10,48

12,50

10,74

7,27

4,73

1,51

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

2001200019991998199719961991-19951981-19901971-19801961-19701941-1960Antes de

1941

RENT

( % of total family houses in rentr)

Source. INE, Censo

SOME RENT HOUSIGN SUPPLY CHARACTERISTICS

June, 2011 19

June, 2011 200,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

TOTAL Hasta 30 m2

30-45 m2 46-60 m2 61-75 m2 76-90 m2 91-105 m2 106-120 m2

121-150 m2

151-180 m2

Más de 180 m2

SIZE AND TENENCY OF FAMILY HOUSES IN SPAIN

Ownership Rent

Source INE, Censo 2001

( % of EACH SIZE group)

Distributed along groups with lower

size

June, 2011 21

RENT STOS BY AGE OF THE BUILDING. SPANISH HOUSING STOCK 2001

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

TO

TA

L

01-

Álav

a

02-

Alb

ace

te

03-

Alic

ante

/Ala

can

t

04-

Alm

ería

33-

Ast

uria

s

05-

Ávila

06-

Bad

ajoz

07-

Bal

ears

(Ill

es)

08-

Bar

celo

na

09-

Bur

gos

10-

Các

ere

s

11-

Cád

iz

39-

Ca

nta

bria

12-

Ca

ste

llón

/Ca

stel

ló

51-

Ce

uta

13-

Ciu

dad

Rea

l

14-

Cór

dob

a

15-

Co

ruña

(A

)

16-

Cu

enc

a

17-

Gir

ona

18-

Gra

nada

19-

Gu

adal

ajar

a

20-

Gu

ipúz

coa

21-

Hu

elv

a

22-

Hu

esc

a

23-

Jaén

24-

Leó

n

25-

Lle

ida

27-

Lug

o

28-

Mad

rid

29-

Mál

aga

52-

Mel

illa

30-

Mur

cia

31-

Na

varr

a

32-

Ou

ren

se

34-

Pal

enci

a

35-

Pal

mas

(L

as)

36-

Pon

teve

dra

26-

Rio

ja (

La)

37-

Sal

ama

nca

38-

San

ta C

ruz

de

40-

Seg

ovia

41-

Sev

illa

42-

Sor

ia

43-

Ta

rrag

ona

44-

Te

rue

l

45-

To

ledo

46-

Val

enci

a/V

alèn

cia

47-

Val

lado

lid

48-

Viz

caya

49-

Za

mor

a

50-

Za

rag

oza

Before 1971

1971-1990

After 1991

( % total rent houses)

Source. INE, Censo 2001

General overview: Quality

June, 2011 22

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

External noice Contamination Dirty streets Bad communications

and roads

Little green areas

Delinquency and vandalism

in the neighbourhood

No or insuf icient toilet facilities in

the house

HOUSING QUALITY: PROBLEMS ASSOCIATED TO THE NEIGHBOURHOOD BY TENENCY

Ownership Rent

(% of total houses in EACH tenency group)

Source. INE, Censo de 2001

SOME DEMAND CHARACTERISTICS OF RENT

MARKET

June, 2011 23

Model 2- data

description

June, 2011 242,00

2,20

2,40

2,60

2,80

3,00

3,20

3,40

3,60

3,80

4,00

HOUSEHOLD SIZE IN RENT MARKET. SPAIN, 2001

Ownership Rent

(number of members of households beeing in ownership or rent)

0,00

5,00

10,00

15,00

20,00

25,00

30,00

Single Couple 3 persons 4 persons 5 ó +

SIZE OF HOUSEHOLD LIVING IN RENT HOUSE. SPAIN, 2001

Ownership

Rent

(% of total households living in each tenure type)

Fte. INE, Censo 2001

Model 2- data description

June, 2011 25

0,00

5,00

10,00

15,00

20,00

25,00

HOUSEHOLD IN RENT HOUSES' STRUCTURE

Ownership Rent

( % of total stock by tenency)

Source. INE, Censo 2001

Model 2- data description

June, 2011 260,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0

TOTAL

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85-89

90 ó más

DISTRIBUTION BY AGE OF TENENCY PATTERN IN SPAIN. CENSUS 2001

Rent

Ownership

( % on total family houses) Source. INE, Censo 2001

Model 2- data

description

June, 2011 27

HOUSEHOLD CIVIL STATE BY TENENCY. SPAIN, CENSUS 2001

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

SINGLE MARRIED VIDOW SEPARATED/DIVORCED

RENT OWNERSHIP

( % of total people by tnency formula) Fte. INE, Censo 2001

Model 2- data description. Rent

by nationality

RENT TENENCY AND NATIONALITY(% of total population living in rent)

Spanish 79,60European without Spanish 4,81Áfricans 4,87Latinamericans 9,80Asians 0,92Others 0,02

Source. INE, Censo 2001

June, 2011 29

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

Foreign Spanish Foreign Spanish

% of total tenency pattern % on total population

HOUSING TENURE AND NATIONALITY. SPANISH HOUSING MARKET

Rent ownership

( % of total houses by tenency)

Source. INE, Censo 2001

Model 2- data description

RENT TENENCY AND NATIONALITY(% of total population living in rent)

Spanish 79,60European without Spanish 4,81Áfricans 4,87Latinamericans 9,80Asians 0,92Others 0,02

Source. INE, Censo 2001

June, 2011 30

0,00

5,00

10,00

15,00

20,00

25,00

30,00

TOTA

L01

-Ála

va02

-Alb

acet

e03

-Alic

ante

/Ala

cant

04-A

lmer

ía33

-Ast

uria

s05

-Ávi

la06

-Bad

ajo

z07

-Bal

ears

(Ill

es)

08-B

arce

lona

09-B

urg

os

10-C

ácer

es11

-Cád

iz39

-Can

tab

ria 12-…

51-C

euta

13-C

iud

ad R

eal

14-C

órd

ob

a15

-Co

ruña

(A

)16

-Cue

nca

17-G

irona

18-G

rana

da

19-G

uad

alaj

ara

20-G

uip

úzco

a21

-Hue

lva

22-H

uesc

a23

-Jaé

n24

-Leó

n25

-Lle

ida

27-L

ugo

28-M

adrid

29-M

álag

a52

-Mel

illa

30-M

urci

a31

-Nav

arra

32-O

uren

se34

-Pal

enci

a35

-Pal

mas

(La

s)36

-Po

ntev

edra

26-R

ioja

(La

)37

-Sal

aman

ca38

-San

ta C

ruz

de

…40

-Seg

ovi

a41

-Sev

illa

42-S

oria

43-T

arra

go

na44

-Ter

uel

45-T

ole

do

46-…

47-V

alla

do

lid48

-Viz

caya

49-Z

amo

ra50

-Zar

ago

za

POPULATION IN RENT BY NATIONALITIES. 2001. SPANISH HOUSING MARKET BY PROVINCES

Europeans (spanish no included)Africans

latinamericans

(% otf total population living in rent house)

Source. INE, Censo 2001

Model 2- data description.

Mobility and rent market

June, 2011 31

TENENCIA DE VIVIENDA Y LUGAR DE TRABAJO DE LA PERSONA DE REFERENCIA Y EL

CÓNYUGE O PAREJA: 2001

0,00

10,00

20,00

30,00

40,00

50,00

60,00

propiedad Alquiler Cedida gratis o a bajo precio Otra forma

En este municipio

Varios municipios

distinto municipio

(En % s/ total de las personas de referencia + cónyuges)

MOBILITY, TENENCY AND WORKING PLACE % on total reference person in household Residence 10 years ago Total

Working place Tenure regime

This municipality

other municipality or country

Same municipality or multiple Ownership 50,71 5,94 56,66

Rent 5,29 3,03 8,31

Other 4,22 0,74 4,95

Total 60,23 9,69 69,92

Distinct municipality propiedad 17,78 7,67 25,45

Alquiler 1,37 1,15 2,52

Other 1,42 0,44 1,84

Total 20,57 9,25 29,82

Other country propiedad 0,14 0,05 0,2

Alquiler 0,02 0,02 0,03

Other 0,02 0 0,03

Total Total 0,18 0,07 0,25

total 80,98 19,02 100

Model 2- data

description

June, 2011 320

5000

10000

15000

20000

25000

1930

1931

1932

1933

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

1945

1946

1947

1948

1949

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

POPULATION MOBILITY AND HOUSING TENURE BY NATIONALITIES

ownership of foreign res.

Rent of foreign res

ownership Spanish

Rent Spanish

(nUMBER OF HOUSEHOLDS BY YEAR OF ARRIVAL TO MUNICIPALITY )

Source. INE, Censo 2001. Microdatos

0

5000

10000

15000

20000

25000

30000

POPULATION MOBILITY IN SPAIN

Foreigners

Spanish

Model

• Rent market suplly/demand – … 44 variables ..profile of household in rent

– 22 about the head of household– 22 about structure of the household

– With 22 house characteristics– 92,088 observations microdata

• Cluster analysis … types?• Supply groups of houses by characteristics• Households…Demand groups

• Factorial analysis… Determinants of rentJune, 2011 33

Supply. Rent house type

• Average house… characteristics– Rented since 1992– Good neighbourhood quality– Good communications, enough public services– Low delinquency– Low green areas– Around 81 m2, 4 bedrooms, new– Good quality

June, 2011 34

Model 1. Supply.

• 2 cluster identified: 2 types of houses:

June, 2011 35

A B. Good accesibility neutral low contamination contamination Enough public facilities neutral No delinquency and noises Noises Not gren areas Not green areas Around 100 m2, 3rd floor around 64 m2 New building, multifamily Older building Garaje space provided Garaje provided Cleaned streets Low clean streets

Model 1. Supply.

Centroids

June, 2011 36

Cuadro 8.- Centroides de los Cluster estimados

Cluster

1 2

Año llegada a la vivienda 1992,40 1991,99

Régimen de tenencia 4,00 4,00

Ruidos exteriores 4,20 4,19

Contaminación 5,01 4,96

Poca limpieza en las calles 4,59 4,38

Malas comunicaciones 5,40 5,40

Pocas zonas verdes 4,18 3,97

Delincuencia en la zona 4,91 4,62

Falta de servicios 5,94 5,89

Refrigeración 5,44 5,55

Calefacción 2,62 2,91

Combustible para calefacción 1,88 1,78

Altura (en nº de plantas) en la que está la vivienda 3,14 3,14

Nº de habitaciones 5,08 3,99

Superficie útil 100,93 62,90

Disp. vehiculos a motor (no motos) 2,15 2,46

Número de plantas sobre rasante 4,97 4,95

Número de plantas bajo rasante 0,09 0,06

Tipo de edificio 2,35 2,37

Año de construcción 6,29 5,65

Año exacto 1995,62 1995,84

Estado del edificio 3,87 3,76

Clase de propietario 1,58 1,62

Accesibilidad del edificio 3,04 3,35

Agua corriente 1,03 1,03

Evacuación de aguas residuales 1,06 1,06

Portería 1,99 1,92

Garaje 1,68 2,00

Número de plazas de garaje 19,74 404,35

Gas 1,50 1,48

Model 2 Factors explaining supply side of rent market

Factors explaining housing rent. The supply side    

Factor 1- Type of building    

Númber of floors 0,88   Factor 7 – Water system KMO and Bartlett's Test  

Floor of the apartment 0,79 Water system 0,82 Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0,75

Type of building 0,75 Water distribution network 0,78 Bartlett's Test of Sphericity Approx. Chi-Square 14724,87

Type of owner 0,59 Factor 8 – Building quality df 378

Number of garaje parking 0,51 Building quality 0,71   Sig. 0

Factor 2- Problems in the neighbourhood Bad road network 0,52      

Contamination 0,66     Matrix Determinant 0 ,012

Not well cleaned streets 0,64 Factor 9- Accesibility  

Noises 0,63 Vehicles availabilty (cars..) 0,7  

Delinquency, insecurity 0,58 Total Varianza explicada    

No green space 0,47 Componentes- Factores Initial Eigenvalues    

Bad accesibility 0,3 Total % de la varianze % Acc  

Factor 3- Size 1 3,85 13,75 13,75  

Nº of rooms 0,87 2 1,99 7,11 20,86  

Surface 0,86 3 1,68 5,99 26,85  

Factor 4- Year of arrival 4 1,59 5,69 32,55  

Year of arrival to city 0,83 5 1,31 4,67 37,22  

Year of arrival to house 0,77 6 1,22 4,37 41,59  

Factor 5- Energy 7 1,13 4,04 45,63  

Type of energy used 0,77 8 1,09 3,89 49,52  

Gas 0,59 9 1,08 3,85 53,36  

Factor 6- Facilities          

Telephone 0,64    

Hitting 0,61    

*Coeficientes de la matriz de componentes rotados    

Método de extracción: componentes principales, rotación: Varimax con normalización de Kaiser    June, 2011 37

Demand

• Household renting house ‘average-type’– Spanish, male, around 35 years old– Living in hte municipality from more than one

decade– Married, 3 – 4 people: couple plus children– Working in the same municipality. 2 workers

• 20 minutes commuting• Permanent contract, working for other

– Bachelor level– Good quality in the house

June, 2011 38

Model 1. Demand…5 Clusters identified

• Three foreign households– 1.- Single immigrant men (Latinoamerica) living with others, young,

medium education level• High mobility, commuting 1.5 hours• Recent arrived, working more hours than average• Good quality in house neighbourhood, 80 m2

– 3.- Single female also immigrant (Latinoamerica), medium age, low education level

• Living with other person (child or partner)• No recent arrived (moving from other city), working little hours• No so good quality in neighbourhood

– 2. Married man, from Europe (main UK)

• High education level, working in services• Working in the city, stable work • High quality in living conditions, large houses

June, 2011 39

Model 1. 5 Clusters identified• 2 Spanish rent households.

– 4. Single man, 37 years old, medium education• Not migrant (living in the municipality from long time)• Working in companies link to services, medium level

salary• Good quality in the neighbourhood, 70 m2

– 5. Single man, 45 years old, high level of education

• Moved to municipality long time ago• Commuting in own car• Good or very good quality in neighbourhood

June, 2011 40

Model 2: Household factors

determinants of rent a house. Demand side

June, 2011 41

Factor definition Corr (1) Var (2)Factor 1- Type of household 7,9 Corr (1) Var (2)Couple plus children 0,83 4Persons from 16 to less tan 64 years old 0,83 Low number of green areas 0,83

Delinquency 0,61Low cleaning level in the street 0,48

Relatives living at home -0,86 4Factor 2- Type of building 7,4 Nº rooms 0,84Number of floors 0,9 Surface m2 0,59Type of owner 0,8 3,7Floor of the apartment 0,78 Lack on public services 0,67Number of garaje units 0,64 Bad accesibility and communic. 0,61Type of building 0,6 Factor 13.- Children types 3,5

5,7 Children type (student, worker.. 0,58Socioeconomic condition 0,86 3,4Professional position 0,8 Car availability 0,79Profesional level 0,61 3,2Education level -0,61 Hours a week of work 0,8

5,6 Sector activity -0,47Year of arrival 0,85 Factor 16.- Nationality 2,7Residence 10 years ago 0,8 Spanish or foreign 0,86Year arriving Spain 0,63Factor 5- Main houseold person 5,4

Position in the household 0,9 Componente Total % de varianza accNumber of household in the house 0,59 1 3,63 7,88Gender 0,27 2 3,4 15,26Civil state -0,85 3 2,62 20,96

5,3 4 2,55 26,51Size, number of members 0,8 5 2,46 31,86Number of generations 0,79 6 2,42 37,13Number of household in the house 0,63 7 2,32 42,18 Bartlett's Test de SphericityAprox. Chi2 3433,678Parents plus chidren 0,43 8 1,91 46,32 df 1035Factor 7 – Quality of building 5 9 1,85 50,35 Sig. 3,40E-254Year of house arrival 0,81 10 1,84 54,35Year of construction 0,79 11 1,83 58,32Quality of building 0,7 12 1,69 62,01

4,1 13 1,6 65,49Contamination 0,85 14 1,55 68,86Noises in the neighbourhood 0,79 15 1,47 72,04Factor 9- Work mobility 4 16 1,26 74,78Time of commuting 0,75Place of work 0,6Number of dayly trips -0,55

Kaiser-Meyer-Olkin,Adecuación de la muestra.0,52

FACTORS SHOWING HOUSEHOLD IN RENT TYPOLOGY. SPAIN, 2001

Significant statisticsKMO and Bartlett's Test

Age 0,4

Factor 10.- Neighbourhood quality 1

Factor 11.- Size of house

Factor 12.- Neighbourhood quality 2

Factor 14.- Car availability

Total Variance Explained (tras rotación)

Factor 3- Level of education of main household person

Factor 4- Time arriving themunicipality

Factor 15.- Work type of main person in the household

Método de extracción: Análisis de Componentes Principales

Factor 6- Size and household structure

Factor 8 – Environmental features

Model 2: factor analysis

June, 2011 42

GRUPOS DE FACTORES IDENTIFICATIVOS DE LOS HOGARES EN ALQUILER EN ESPAÑA. Varianza explicada

Hogar Empleo y movilidad Calidad de la vivienda Calidad del barrio

Factor 1- Tipo de hogar 7,88 Factor 9- Movilidad al trabajo 4,03

Factor 2- Tipo de edificio de la vivienda 7,38

Factor 8 - calidad del barrio 1 (medioambiental) 4,14

Factor 3- Característica de formación de la persona principal 5,69

Factor 14.- Disponibilidad de vehículo 3,37

Factor 7 - Estado del edificio 5,05

Factor 10.- calidad del barrio 2 (mantenimiento) 4,00

Factor 5- Persona principal 5,35

Factor 15.- Actividad de la persona principal 3,19

Factor 11.- Superficie de la vivienda 3,98

Factor 12.- Calidad del barrio 3 (falta urbanización) 3,68

Factor 6- Tamaño y formación del hogar 5,27

Factor 4- Momento de llegada al municipio 5,55

Factor 13.- Hijo del hogar 3,48 Factor 16.- Nacionalidad 2,74

TOTALES 30,42 16,14 16,41 11,82

Conclusions

• Rent market in Spain– Census 2001 data: stock&population, no other sources– Microdata

• Two level of analysis:– Typology of houses supplied in rent– Typology of rent house demanders

• Cluster and factorial analysis• Including information about mobility for labour

reasons

June, 2011 43

Conclusions

• Micro rent market in Spain but with relevance in capitals

• Most associated to mobility needs for labour purposes– Direct and possitive relationship statistically

significant

• Rent houses not statistically distinct from owned homes …

• Good quality.. Similar conditions• Smaller than the owned stock

June, 2011 44

Conclusions

• Relevant to cover immigrants’ demand– From all income ranges

• Not homogeneous for Spanish households• There is no a ‘Rent typology’ for Spanish households

• Main role for single households, both foreign as well as Spanish

• Not relevant for traditional households… ownership rate

June, 2011 45

Conclusions

• Very relevant in some provinces/cities, with rent rates similar to the international ones– Ceuta, Melilla, Canary Islands, Baleares,

Barcelona, Cádiz, León, Coruña…

• Limitations in housing mkt in other:– Madrid,

• Housing needs has been covered by ownership

June, 2011 46

Future

• Rent market in Spain changes during 2000’s

June, 2011 47

0

50000

100000

150000

200000

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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

POPULATION MOBILITY IN SPAIN AMONG CITIES

Whithin Spanish regions

from abroad Spain

Source. INE, EVR

(number of persons by month moving f rom one house to another in dif ferent city)

Credit crunch shock