Self-reported and Market Home Values in Housing Wealth Inequality Measurement: Evidence from Warsaw and Prague
Self-reported and Market Home Values in Housing Wealth Inequality Measurement: Evidence from Warsaw and Prague
Author(s): Mateusz TomalSubject(s): National Economy, Rural and urban sociology, Socio-Economic Research
Published by: AV ČR - Akademie věd České republiky - Sociologický ústav
Keywords: coefficient of variation; hedonic model; housing wealth inequality; Prague; subjective versus objective, Warsaw
Summary/Abstract: This paper aims to examine whether self-reported home valuations can be a substitute for objective market data in studies on the level of housing wealth inequality. In order to achieve this aim, information on subjective values of flats and their features in Warsaw (Poland) and Prague (Czechia) was used. Next, hedonic models were estimated to calculate the objective values of these residential properties. The results indicated that, on average, homeowners overestimated their real estate by 2.10% in Warsaw and underestimated by 5.49% in Prague. Finally, using tests for the equality of variances, it was examined whether the level of housing wealth inequality differed significantly when calculated using subjective and objective home values. The findings showed that self-reported home values cannot serve as a perfect proxy for market values when assessing the level of housing wealth inequality in both cities.
Journal: Critical Housing Analysis
- Issue Year: 9/2022
- Issue No: 1
- Page Range: 29-38
- Page Count: 10
- Language: English