The Effects of Fixed-term Cashb ack Program on Exit Behavio

T he Case of Osaka Municipal Housing Corporation

Abstract

Public housing corporations (Jyutaku-kyokyu-kosha) in Japan have financial problems due to a decline in land prices and an increase in the vacancy rate of specified good rental housing (Toku-yu-chin). Osaka municipal housing corporation started fixed-term cashback programs for new renters from 2004 to reduce the vacancy rate. This paper examines the effects of these programs on the exit behavior of renters using a survival analysis. We found: (1) renters who receive a cashback exit earlier, especially when the cashback expires; and, (2) newlyweds and child-raising families who receive cashbacks do not exit earlier significantly. This result suggests that public housing corporations can reduce the number of vacant rooms using a cashback program for newlyweds and child-raising families.