The effect of selected macroeconomic variables on rental prices in Kenya

Abstract

Housing is of vital importance to a country and as such a research on the effects of selected macroeconomic variables on rental prices. In Kenya, most of the research has been done on the determinants of real estate property prices unlike those that determine rental prices. This study investigated the effect of selected macroeconomic variables on rental prices in Kenya. Precisely, the study sought to establish whether Inflation, Real Gross domestic product (GDP) and Lending interest rates affect rental prices in Kenya. The study was based on secondary data obtained from the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS) and HassConsult Limited. Descriptive study was used to demonstrate relationship between the macroeconomic variables of interest and rental prices. Quarterly average percentage change in secondary data from January 2010 and December 2014 of rental prices, real GDP, inflation and lending interests rates were input and analysed using SPSS.