The hidden cost of smoking: rent premia in the housing market

Cigdem Gedikli; Robert Hill; Oleksandr Talavera; Okan Yilmaz

doi:10.1111/1540-6229.12399

The hidden cost of smoking: rent premia in the housing market

Cigdem Gedikli, Robert Hill, Oleksandr Talavera, Okan Yilmaz

Economics

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Abstract

In this article, 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%. This translates into £14.40 of indirect costs, in addition to £40 of weekly spending on cigarettes estimated for an average smoker in the United Kingdom.

Original language	English
Journal	Real Estate Economics
Early online date	16 Jun 2022
DOIs	https://doi.org/10.1111/1540-6229.12399
Publication status	E-pub ahead of print - 16 Jun 2022

Bibliographical note

Publisher Copyright:
© 2022 The Authors. Real Estate Economics published by Wiley Periodicals LLC on behalf of American Real Estate and Urban Economics Association.

Keywords

ORIGINAL ARTICLE
ORIGINAL ARTICLES
contracting frictions
hedonic regression
matching
random forest
rental market
smoking
smoking rent premium
text mining

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Cite this

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The hidden cost of smoking: rent premia in the housing market

Abstract

Bibliographical note

Keywords

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