How housing killed the Celtic tiger: anatomy and consequences of Ireland’s housing boom and bust

Norris, Michelle; Coates, Dermot

doi:10.1007/s10901-013-9384-z

Cited by 53 publications

(18 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Real estate related lending increased significantly and reached a peak of 72 per cent in 2006 of total lending by Irish mortgage lenders (Norris and Coates, 2014). While concern was expressed at the vulnerability of the Irish banking sector to the real estate market (Kearns and Woods 2006) rising house prices over the period led many to expect a 'soft landing'.…”

Section: Financial Settings 221 Creditmentioning

confidence: 99%

The changing institutions of private rental housing: an international review

Martin¹,

Hulse²,

Pawson³

2018

AHURI Final Report

View full text Add to dashboard Cite

Related reports and documents AHURIAHURI is a national independent research network with an expert not-for-profit research management company, AHURI Limited, at its centre.AHURI's mission is to deliver high quality research that influences policy development and practice change to improve the housing and urban environments of all Australians.Using high quality, independent evidence and through active, managed engagement, AHURI works to inform the policies and practices of governments and the housing and urban development industries, and stimulate debate in the broader Australian community.AHURI undertakes evidence-based policy development on a range of priority policy topics that are of interest to our audience groups, including housing and labour markets, urban growth and renewal, planning and infrastructure development, housing supply and affordability, homelessness, economic productivity, and social cohesion and wellbeing.

show abstract

Section: Financial Settings 221 Creditmentioning

confidence: 99%

The changing institutions of private rental housing: an international review

Martin¹,

Hulse²,

Pawson³

2018

AHURI Final Report

View full text Add to dashboard Cite

show abstract

“…As a consequence, private banks moved into the mortgage market, replacing the earlier system dominated by mutual building societies and local governments (Kelly and Everett 2004;Norris and Coates 2010;Dellepiane et al 2013). From 2003 onward, Irish banks started to rely heavily on interbank lending not only from the euro area, but also the USA and UK (Honohan 2010;Lane 2015).…”

Section: Mortgage Booms In Ireland and Icelandmentioning

confidence: 99%

Mortgaging Europe's Periphery

Böhle

2017

SSRN Journal

View full text Add to dashboard Cite

This paper asks why peripheral European countries have been particularly vulnerable to housing and mortgage booms in recent decades; how these booms have shaped their exposure to the global financial crisis (GFC), and how the GFC has affected peripheral housing finance. To answer these questions, it explores the interaction between European processes of financial integration and domestic housing (finance) policies in four peripheral countries. It argues that the EU framework for free movement of capital and financial service provision as well as the availability of cheap credit has induced a trajectory of housing financialization, which has taken two forms: funding from wholesale markets and direct penetration of foreign financial institutions. These two forms attest to a core-periphery relationship in housing financialization, whose hierarchical character came to the fore in the crisis. Peripheral European countries experienced sudden stops and reversals of capital flows, which badly affected their banking systems. Unable to solve the looming banking crises on their own, they had to turn to creditors to gain access to much needed capital. A combination of international conditionality and domestic policy responses, and the original level of mortgage debt result in different trajectories in housing finance after the crisis.

show abstract

“…Although declining interest rates following Ireland and Spain's accession to membership of the Euro in the late 1990s made these large borrowings more affordable, lenders in both countries found it necessary to employ financial product innovation to further increase affordability. In Ireland the advent of 100 per cent mortgages, longer maturities, and mortgage equity withdrawal products all further inflated house prices and by extension risks for borrowers (Hogan and O'Sullivan, 2007;Doyle, 2009;Norris and Coates, 2014;Downey, 2014). to 1.6 per cent over the same period) (see Table 1 …”

Section: The Irish and Spanish Housing Booms And Busts: Anatomy Drivmentioning

confidence: 99%

“…In common with many developed countries, residential property price inflation in Ireland and Spain increased dramatically from the late 1990s but, more unusually, this was accompanied by a very large increase in new house building. Thus the Irish and Spanish economies were particularly severely affected when credit availability contracted following the 2008 international credit crunch 2008 because this development precipitated a simultaneous decline in construction and had a marked negative knock-on impact on the employment, tax revenue and consumer spending which the housing boom had underpinned (Norris and Coates, 2014;López and Rodríguez, 2011). This article argues that the Irish and Spanish housing booms and busts are similar not just in terms of scale, impact and proximate causes but also in terms of fundamental causes.…”

Section: Introductionmentioning

confidence: 99%

Asset Price Keynesianism, Regional Imbalances and the Irish and Spanish Housing Booms and Busts

Norris¹,

Byrne²

2015

Built Eviron

Self Cite

View full text Add to dashboard Cite

Ireland and Spain were amongst the European countries which experienced the most severe economic and fiscal problems following the global financial crisis. The proximate causes of these economic crashes have been explored in-depth by researchers and governments, who have highlighted strong parallels between the policy, regulatory and economic factors which underpinned them. In both countries residential property price inflation increased dramatically from the late 1990s driven by increased availability of cheap mortgages but unusually was accompanied by marked growth in new house building. Thus, following the international credit crunch in 2008, a simultaneous contraction in both mortgage credit and house building occurred in Ireland and Spain, which precipitated a marked knock-on decline in the employment, tax revenue and consumer spending which the housing boom had underpinned. This paper argues that the Irish and Spanish housing booms and busts are similar not just in terms of scale and proximate causes but also in terms of fundamental causes. In both countries the housing boom/bust cycle was underpinned by a suite of macroeconomic policies which aimed to use asset price growth to underpin rising demand and economic growth, or in other words achieve what Robert Brenner (2006) terms 'asset-price Keynesianism'. This approach was particularly attractive to the Irish and Spanish governments because it enabled them to resolve historical legacies of industrial underdevelopment and regional imbalances by generating construction jobs in underdeveloped areas. As a result of the latter, local/regional governments in both countries played a key role in facilitating the implementation of this policy.2 Introduction:

show abstract

How housing killed the Celtic tiger: anatomy and consequences of Ireland’s housing boom and bust

Cited by 53 publications

References 11 publications

The changing institutions of private rental housing: an international review

The changing institutions of private rental housing: an international review

Mortgaging Europe's Periphery

Asset Price Keynesianism, Regional Imbalances and the Irish and Spanish Housing Booms and Busts

Contact Info

Product

Resources

About