#2172. The user cost of housing and the price-rent ratio in Shanghai

August 2026publication date
Proposal available till 30-05-2025
5 total number of authors per manuscript6520 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Urban Studies;
Economics and Econometrics;
Places in the authors’ list:
place 1place 2place 3place 4place 5
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Contract №2172.1 Contract №2172.2 Contract №2172.3 Contract №2172.4 Contract №2172.5
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)
5 place - free (for sale)

Abstract:
We compute hedonic quality-adjusted price-rent ratios for residential housing in Shanghai. We find that quality adjustment reduces the price-rent ratio by 14 percent. Even so, a price-rent ratio of 70 in 20XX is still very high by international standards. The key driver is the extremely high rate of expected capital gains, which we argue has turned the user cost of owner-occupying negative. We explore how this affects the interpretation of observed price-rent ratios.
Keywords:
Capital gains; Hedonic quality adjustment; Price–rent ratio; housing market; User cost

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