"Rental Housing Markets and the Natural Vacancy Rate." AREUEA Journal 16, no.
Hansen, "Rental Housing and the Natural Vacancy Rate," Journal of Real Estate Research 32, no.
What matters besides the shift in the Beveridge curve is the change in the natural vacancy rate. For the period before the 2007-2009 recession, estimates of the natural rate of unemployment are generally around 5 percent.
Secondly, even if it were persistent, the shift at the current level of the job openings rate is higher than at any plausible new natural vacancy rate. Finally, there are no good estimates of how the natural job openings rate changes when the Beveridge curve shifts outward.
This is sometimes called the natural vacancy rate
. A vacancy rate of about 14 percent in the Houston area since the mid-80s is observed in the data.
(ii) The Long-Run Natural Vacancy Rate
. An important feature of the rental market model is that new construction of rental housing can occur even if the vacancy rate is not zero.
(Constants): [Beta] is an agent intertemporal discount factor, Vn = natural vacancy rate, assumed to be fixed at 5 percent.
The Price Adjustment Process for Rental Housing and the Natural Vacancy Rate, AER, September, pp.
In recent studies, Wheaton and Torto|24~ and Voith and Crone|21~ examine office rent changes and the natural vacancy rate. Both studies find support for the natural vacancy process.
"The Price Adjustment Process for Rental Housing and the Natural Vacancy Rate." American Economic Review 73: 779-86, 1983.
Conceptually, the natural vacancy rate
(NVR) is that which corresponds with market equilibrium and rent stability.
Dunning, Natural vacancy rates
in Canadian urban centres, Will Dunning Inc.