Relative cost of owner-occupation and renting: A study of six Dutch neighborhoods

Who pays less for housing: the homeowner or the renter? It is widely accepted that the answer is related to the period in time and the income of the households involved. This contribution is concerned with the added effect of place (neighborhood). We calculated the user cost over the period 1978 to 1993 for six different neighborhoods with a stock similar of owner-occupied and rented dwellings. Six neighborhoods in Randstad Holland were selected, each representing a given building period. The data were derived from a questionnaire held in 1993 among renters and homeowners in these neighborhoods. National figures elucidate the differences between income groups and over time. Our data show that the influence of place is not negligible. The housing costs of homeowners and renters alike differ from one neighborhood to another. The influence of place may be attributed to several factors: the building period and the subsidy rules in force at that time; the development of the value of the owner-occupied dwellings; the rent policy; and the land policy.