A Study on Relationship between House Rental Price and Macroeconomic Variables

Abstract In this study, we investigated the macroeconomic variables that affect housing prices thus creating a large impacton people’s lives as well as the real estate market. For the study, the m acroeconomic variables able to influence theHouse Rental Price (housing price by lease or deposit) were use d for an analysis as follows: housing sales price index,household loans rate, total household savings, the number of em ployees and a multiple regression analysis wasperformed using a time series for each macroeconomic variable. As a result of the analysis, the House Rental Pricewas affected by all of four macroeconomic variables. The House Rental Price increased as each variable enlarged. Inconclusion, this study may be useful for finding a solution for stabilizing the House Rental Price as well as for theestablishment of efficient and sustainable policies for the hou sing market.Keywords :House Rental Price, Macroeconomic Variables, Ordinary Least Squares Estimation(OLS), Time Series Data