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A comparison of Residential Rental Indices

Author/s: Bob Hargreaves, Mike Chen

Date Published: 1/01/2001

Published in: Volume 7 - 2001 Issue 1 (pages 35 - 46)

Abstract

This paper compares and evaluates several different methods of measuring changes in residential rental levels for North Shore City in New Zealand. The indices compared were median, hedonic, repeat rent, weighted repeat rent and hybrid. Technically the hybrid method appeared to be the most appropriate, but the trade off was this method is relatively costly in terms of operator time and data requirements. The repeat rent method is reasonably simple and has lower administrative costs. The median method is very easy to set up but suffers from both seasonal and constant quality difficulties. The hedonic method is also costly in terms of time and data requirements. On balance, the hybrid method was preferred.

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Keywords

Measuring Rents - New Zealand - Rental Housing - Rental Indices

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