Where the Landlords Are: Identification of Regions and Megaregions through Networks of Rental Ownership

Keywords: urban networks, housing markets, spatial analysis, urban flows
Abstract Type: Paper Abstract

Abstract

This study uses a multiscalar network-based approach to identify regions and interconnections between regions of rental markets. Many US cities require landlords to acquire a license for each rental property they own. Building on this administrative data of rental property and landlord location, I define rental property networks as a spatial bipartite network, where landlords are connected to their properties, both of which exist in physical space. First, I simplify this network by extracting its backbone, defining a rental market area. This rent-based definition of a region provides for a clear boundary of rental markets based on renter and landlord concentration and location. I show the geographical extent of the network-based rental market area, and compare the socioeconomic differences between landlord and property nodes. I then compare these rental market areas against existing administrative definitions of a region and to commuting network backbones, finding substantial and meaningful differences between the approaches. Second, I define rental housing megaregions based on common institutional ownership across regions, where distinct regional rental housing markets have large concentrations of the same landowner. These megaregions are then evaluated based on their physical distance and other connections, such as through migration. Researchers and policymakers have historically viewed rentals in markets as unconnected nodes. By identifying appropriate definitions of regions and megaregions through the creation and analysis of a rental ownership network, this research provides a more robust foundation to understand rental market dynamics and the relationship between owner, renter, and property.