Japanese Housing Tenure Choice and Welfare Implications after the Revision of the Tenant Protection Law

Seko, Miki; Sumita, Kazuto
October 2007
Journal of Real Estate Finance & Economics;Oct2007, Vol. 35 Issue 3, p357
Academic Journal
A new mode of housing tenure in Japan, rental housing with fixed rental terms, was introduced in March 2000 with the revision of the Japanese Tenant Protection Law. This paper examines the implications of this new system by analyzing the determinants of the choices by households among the three types of housing tenure in Japan: owned housing, general rental housing, and rental housing with fixed rental terms, and calculates the estimated compensating variation. Our micro-data is based on the three waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) covering all of Japan. The difference between general rental housing and rental housing with fixed rental terms is reflected in the length of the contract term and the level of rent. We carefully eliminate potential sample selection bias introduced to the conditional logit housing tenure choice model through the estimation of the hedonic price regression of each housing tenure alternative. We find that households with a smaller number of family members, those who moved from outside the local housing market, those headed by an unmarried household head, and those with plans to own a house in the near future tend to select rental housing with fixed rental terms. The estimated mean compensating variation by introducing rental housing with fixed rental terms for all households selecting that tenure is 1,205 JPY per month or 1.96% of their monthly rent. Moreover, younger and/or lower income households derived the greatest benefit from the revised law in the form of lower rents.


Related Articles

  • Look at assets to benefit both landlord and tenant. Ashbridge, Ian // Farmers Weekly;4/11/2008, p82 

    The article states that British landlords and tenants should look beyond the rent review process and use the chance to strategically assess what the holding can offer both parties, according to rural consultant Strutt & Parker. Convention dictates that tenants, landlords and their advisers will...

  • Elimination of Rent Control in the Swedish Rental Housing Market: Why and How? Andersson, Roland; Söderberg, Bo // Journal of Housing Research;2012, Vol. 21 Issue 2, p159 

    If housing market rent control is completely eliminated, welfare gains may arise from tenant redistribution. The amount of such welfare gains is estimated at approximately SEK 20 billion (approximately USD 3 billion) for inner Stockholm. In addition, welfare gains may arise from the production...

  • Law. Hadley, Joanne // EG: Estates Gazette;4/18/2015, Issue 827, p15 

    The article discusses the proposal of the Labour Party to provide a better deal for renters in Great Britain and its impact on the law governing residential short-term renters. Topics discussed include the assured shorthold tenancy (AST) as the default mode of renting in England and Wales since...

  • Subleasing Rules for the Road. Clark, Alicia B. // National Real Estate Investor;Jan/Feb2010, Vol. 52 Issue 1, p48 

    The article offers information on the subleasing rules that landlords, tenants, and subtenants must be aware of to avoid conflict. It provides provisions that are classified into three categories, such as silent consent clause, consent not to be unreasonably withheld, and consent with specified...

  • Law Blames Short-Term Apartments For Affordable Housing Shortage.  // Assisted Housing Alert;Aug2010, Vol. 6 Issue 8, p61 

    The article reports an issue on short-term rental which is the cause in the shortage of affordable housing in New York. The said rental lasts less than 30 days and is located in a traditionally residential building or neighborhood. A new bill was enacted against these rentals that converts a...

  • Rent decontrol working in L.A.  // Crain's New York Business;05/03/99, Vol. 15 Issue 18, p8 

    Editorial. Cites how rent decontrol is working in Santa Monica, California to emphasize how rent controls may improve the situation in New York City. High residential rates in New York City; Costs of the system in New York City.

  • CHAPTER 3: All About Rent. Portman, Janet; Brown, David // California Tenants' Rights;Jun2013, p45 

    The article provides an overview of rent control rules in the state of California including details for each community with rent control. A landlord can legally charge as much rent as he or she wants as there is no state or federal law that dictates what landlords can charge, unless the premises...

  • Learn the rules: Rent control may spread. Frank, Cheryl // ABA Journal;Jul85, Vol. 71 Issue 7, p22 

    Reports on key issues and developments relevant to rent control laws and legislation in the U.S. compiled as of July 1985. Implications of rent control on rental housing and property deterioration; Supreme Court rulings on cases involving rent control ordinance and a landlord's unilateral right...

  • Center for Student Legal Services Q&A: Security Deposits.  // Athens News;4/14/2014, p16 

    The article presents questions and answers related to legal issues in rental housing including getting back security deposit at the end of tenancy, paying last month rent even after paying security deposit, and another on returning security deposit by landlord.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics