Journal article 547 views 71 downloads
The hidden cost of smoking: Rent premia in the housing market
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Robert Hill ,
Sasha Talavera ,
Okan Yilmaz
Real Estate Economics, Volume: 51, Issue: 3
Swansea University Authors:
Cigdem Gedikli , Sasha Talavera , Okan Yilmaz
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DOI (Published version): 10.1111/1540-6229.12399
Abstract
In this paper, we provide novel evidence on the additional costs associated with smoking. While it may not be surprising that smokers pay a rent premium, we are the first to quantify the size of this premium. Our approach is innovative in that we use text mining methods that extract implicit informa...
| Published in: | Real Estate Economics |
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| ISSN: | 1080-8620 1540-6229 |
| Published: |
Wiley
2023
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa60149 |
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| Abstract: |
In this paper, we provide novel evidence on the additional costs associated with smoking. While it may not be surprising that smokers pay a rent premium, we are the first to quantify the size of this premium. Our approach is innovative in that we use text mining methods that extract implicit information on landlords’ attitudes to smoking directly from Zoopla UK rental listings. Applying hedonic, matching and machine-learning methods to the text-mined data, we find a positive smoking rent premium of around 6 percent. This translates into £14.40 of indirect costs, in addition to £40 of weekly spending on cigarettes estimated for an average smoker in the UK. |
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| Keywords: |
contracting frictions, hedonic regression, matching, random for-est, rental market, smoking, smoking rent premium, text mining |
| College: |
Faculty of Humanities and Social Sciences |
| Funders: |
None |
| Issue: |
3 |