Exploring cross-market dynamics between renting and buying in the housing market of the city of Rome (Italy)

Purpose This study aims to investigate the relationship between the rental and sales segments of the housing market of the city of Rome (Italy), examining the factors influencing each sector. While renting and buying follow distinct market logics, both respond to shared social, economic and demographic dynamics. Identifying where these mechanisms align − or diverge − is crucial to understanding household and investor decisions. Design/methodology/approach To successfully achieve the mentioned goal, a methodological approach able to define two separate evaluation models (called BUY model and RENT model) for the identification of the most influencing factors on specific-segment dynamics and the the quantification of the relative marginal contribution of each regressor on selling prices/rents is proposed. With reference to the case study, two comparable data sets are elaborated: one for on rental properties and one for on sale properties located in the same geographical context, including intrinsic characteristics generally taken into account by buyers and tenants in negotiation phases. The analysis applies twice an econometric data-driven modelling technique that identifies functional relationships without predefining a mathematical form. Findings Results indicate that several attributes − such as property maintenance state, floor area, lift availability, energy label, property type (apartment), presence of terrace and photovoltaic systems − affect both markets, though not always in the same manner. Some characteristics, however, are market-specific: long-term structural factors predominantly shape selling prices, whereas short-term comfort and service-related amenities are more influential for rents. Practical implications This study highlights how buyers and tenants show different market appreciation to similar housing features and underscores the advantages of the proposed flexible methodological approach in capturing nuanced market behaviours to orient both private investment strategies and public housing policies. Originality/value This study provides an original contribution by jointly analysing the rental and sales housing markets within the same urban context, focusing on Rome. Unlike most studies that investigate these segments separately, it develops two parallel econometric models (BUY and RENT) based on comparable data sets to identify and compare the determinants of selling prices and rents. The research also adopts a flexible data-driven modelling technique that identifies functional relationships without imposing a predefined mathematical form, allowing the estimation of the marginal contribution of housing attributes.