Objectified Housing Sales and Rent Prices in Representative Household Surveys: the Impact on Macroeconomic Statistics Surveys

M. Denisa Naidin
Luxembourg Institute of Socio-Economic Research (LISER) & University of Luxembourg

Sofie R. Waltl
Luxembourg Institute of Socio-Economic Research (LISER) & Vienna University of Economics and Business (WU)

Michael H. Ziegelmeyer
Banque centrale du Luxembourg (BCL) & Munich Center for the Economics of Aging (MEA)


This article incorporates market sales and rent data into the Luxembourg Household Finance and Consumption Survey via hedonic imputation models. By this, we create objectified sales and rent prices for all dwellings described in the survey, and add objectified values to otherwise subjectively reported survey data. We characterise survey participants who tend to under- or over-report, respectively, and find strong correlations with tenure length, tenure type (renting versus owner-occupying), type of dwelling, as well as household income and wealth. We use the objectified prices to compile macro-economic statistics: total (housing) wealth, distributional break-downs, aggregate and regional price-to-rent, price-to-income and rent-to-income ratios, as well as housing affordability measures. We find structural shifts in the wealth distribution, large regional variation in price-to-rent, price-to-income and rent-to-income ratios as well as affordability concerns: only roughly 15% of all renting households could afford and would economically benefit from purchasing their inhabited dwelling given current market prices.

JEL Codes: E58; G51; R21; R31.
Keywords: Macroeconomic Statistics; Housing and Rent Markets; Household Surveys; Affordability; Housing Wealth; Price-to-Rent Ratios; Price-to-Income Ratios.

This research benefits from funding by the FNR Luxembourg National Research Fund, CORE Grant No. 3886 (ASSESS). This article uses data from the Luxembourg Observatoire de l’Habitat and the Luxembourg Household Finance and Consumption Survey. The views expressed are solely those of the authors and may not be shared by the data providers nor the BCL or the Eurosystem.


Presentations (incl. scheduled): [National Bank of Slovakia Research Webinar][2021 Economic Statistics Centre of Excellence (ESCoE) Conference on Economic Measurement][European Central Bank (DG Statistics)][Banque centrale du Luxembourg][2021 User workshop of the Eurosystem Household Finance and Consumption Survey, European Central Bank][2022 ASSA Virtual Annual Meeting]