Abstract
Large similarities exist between the labor and real estate space markets. The natural rate of unemployment (NRU) and the natural vacancy rate (NVR) are important in modeling these markets. The real estate literature has drawn on early modeling of the labor market and has predominantly assumed the NVR to be constant in time. We consider a range of approaches to estimate cross-sectional and time variation in the NVR for the US office market. The results provide no evidence for a time trend, but the NVR may still vary temporally although it is difficult to identify plausible and consistent variation.
Original language | English |
---|---|
Pages (from-to) | 83-108 |
Journal | Journal of Real Estate Literature |
Volume | 29 |
Issue number | 2 |
Early online date | 13 Dec 2021 |
DOIs | |
Publication status | Published - 2021 |
Bibliographical note
AcknowledgementWe thank CBRE Econometric Advisors for provision of most of the data used for this study. Open access via T&F agreement.
Keywords
- Natural Vacancy Rate
- Natural Rate of Unemployment
- Office Markets