Our baseline state price rent ratios are based on (average-quality) owner occupied houses (Zillow series: "ZHVI All Homes" here)
One could be concerned that these houses have, on average, higher prices than rented houses. Hence, we would impute prices of rented houses which are too high. This would result in excess imputed property taxes paid by renters.
To address this concern, we can repeat the renter property tax imputation using the "ZHVI All Homes - Bottom Tier" series as a robustness exercise. These houses are less valuable than the baseline case ones.
Our baseline state price rent ratios are based on (average-quality) owner occupied houses (Zillow series: "ZHVI All Homes" here)
One could be concerned that these houses have, on average, higher prices than rented houses. Hence, we would impute prices of rented houses which are too high. This would result in excess imputed property taxes paid by renters.
To address this concern, we can repeat the renter property tax imputation using the "ZHVI All Homes - Bottom Tier" series as a robustness exercise. These houses are less valuable than the baseline case ones.