Housing market between choice and chance Housing allocation by lottery in the rental market of Eindhoven M.I.K. Leussink J.J.A.M. Smeets Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Content Introduction Structure and use of housing stock Eindhoven Allocation of housing The choice based allocation system with lottery Research method Advertisements, applications, rejections and acceptations Conclusions Discussion Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Introduction Mature housing market Qualitative mismatch Starters / movers ratio: 20 / 80% Adequate allocation system Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Figure A: Structure and use of the housing stock in Eindhoven (2007) Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Allocation FromTowards Distribution model Landlord controlled Administrative allocation Matching criteria Passive attitude (waiting list) Restricted freedom of choice Supply model (CBL-model) Quasi-market Choice based allocation No or less criteria Active participation Enlarged freedom of choice Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Allocation in Eindhoven Since 2003 revisited allocation system Freedom of choice Counteracting segregation Quality of live Advertising of supply Selection by lottery Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Benefits of a lottery (Boyle, 1994) Hopefulness You have not to wait many years, you have a chance soon Fairness In the long run the tenant mix reflect the make-up of the waiting list Convenience The administrators need only keep a list of those applying Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Choice (Brown & King, 2005) Capability to act Effective choice (Brown & King, 2005) Connects choice with access to resources Three principles for housing processes (King, 1996) Limitation of regulation Control by users Access to resources Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Figure B: the choice based allocation system with lottery Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Research method Data-mining process Existing database: 13,264 active dwelling seekers Internet survey: 3,780 participants Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Active house-hunters At least one application in the last year AgeN% < 23 years288321,8% years554441,8% years385529,1% years7205,4% 71 > years2501,9% Total ,0% = 63,6% = 36,4% 20% starter 80% mover Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Rent-alerts AgeHouse-huntersHouse-hunters with rent-alertPercentage < 23 years ,2% years ,7% years ,3% years ,3% 71 > years ,4% Total ,5% Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and applications (1a) Types of dwelling types of dwellingapplicationsadvertisementsapplications/advertisementchance apartment with elevator ,4% apartment without elevator ,2% single-family dwelling ,1% room/lodging ,8% total ,2% Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and applications (1b) Rental price rental priceapplicationsadvertisementsapplications/advertisementchance cheap ,2% affordable ,2% expensive ,2% total ,2% Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and applications (1c) Target groups target groupsapplicationsadvertisementsapplications/advertisementchance < 30 years old ,4% years old ,1% > 55 years old ,8% total ,2% Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and rejections (2a) Types of dwelling types of dwellingadvertisementsrejectionsrejections/advertisement apartment with elevator ,74 apartment without elevator155670,43 single-family dwelling123380,31 room/lodging37611,65 total ,66 Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and rejections (2b) Rental price rental priceadvertisementsrejectionsrejections/advertisement cheap ,74 affordable ,53 expensive102910,90 total ,66 Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Advertisements and rejections (2c) Target groups target groupsadvertisementsrejectionsrejections/advertisement < 30 years old , years old ,43 > 55 years old ,88 total ,66 Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Acceptation applicants (3) year applicantN%N%N% 1st5476%16573%14877% 2nd1217%3716%3317% 3rd34%146%63% 4th23%84%42% 5th00%21%1 6th00%1 0 Total71100%227100%192100% Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Conclusions Access to scarce resources Choices are competitive System more chance-based then choice-based System more effectively for supplier Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Discussion Access to resources is not opened up by choice-based systems Information between applicants unequal Housing allocation by lottery in the rental market of Eindhoven Housing market between choice and chance Thanks for your attention The full paper will be put into the ERES digital library: