Schwabe's law

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As Schwab's Law is defined as the 1868 Berlin statistician Hermann Schwabe formulated (1830-1874) Observation:

"The poorer someone is, the greater the amount they have to spend on renting an apartment in relation to their income."

In other words, this means that the income elasticity of housing demand is less than one. In contrast to Engel’s law , however, Schwab’s law is not generally valid, as households with very high incomes tend to increase the share of rental expenses.

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