Disequilibrium in the housing market can be detected by comparing the actual price-rent ratio with its equilibrium … presence of omitted variables. Applying this method to a data set consisting of 730,000 individual price and rent transactions … we find that quality adjusting significantly reduces the actual price-rent ratio. We then insert these quality adjusted …

units from repeated cross-sections of geocoded micro data. The algorithm combines parametric and non-parametric estimation … the density bias of price-to-rent ratios in levels and trends, within and between cities. Our method lends itself to the … creation of comparable neighborhood-level qualified rent indices (Mietspiegel) across Germany. …

In this paper, we construct a quality-adjusted rent index for the office market in Oslo. Commonly used rent indices are … explanatory power increases considerably. Furthermore, indices controlling for micro-location portray a different picture of rent … developments than indices that do not take this into account. We also document a considerable rent premium for proximity to a metro …