How responsive are housing markets in the OECD? Regional level estimates

Bétin, Manuel; Ziemann, Volker

doi:10.1787/1342258c-en

Cited by 5 publications

(4 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Several structural factors explain elevated housing demand in cities. These include trends in urbanisation and the concentration of populations (including refugees and migrants) in urban centres in search of better opportunities and lifestyles (Awaworyi Churchill, Hailemariam and Erdiaw-Kwasie, 2020 [21]). Falling marriage rates and rising divorce rates (OECD, 2023 [22]) are generating additional demand for (smaller) housing units (OECD, 2021 [15]).…”

Section: Mismatch Between Housing Supply and Demandmentioning

confidence: 99%

Confronting the cost-of-living and housing crisis in cities

2023

OECD Regional Development Papers

View full text Add to dashboard Cite

The OECD is a multi-disciplinary inter-governmental organisation with member countries which engages in its work an increasing number of non-members from all regions of the world. The Organisation's core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and co-ordinate domestic and international policies. More information available: www.oecd.org.

show abstract

Section: Mismatch Between Housing Supply and Demandmentioning

confidence: 99%

Confronting the cost-of-living and housing crisis in cities

2023

OECD Regional Development Papers

View full text Add to dashboard Cite

show abstract

“…Betin and Ziemann (2019) use regional cross-country GIS data from 12 OECD countries. They confirm that land use restriction is an important influence on supply elasticities.…”

Section: Literature Reviewmentioning

confidence: 99%

House price dynamics under lower leverage: the case of metropolitan cities in India

Pani

2022

IJHMA

View full text Add to dashboard Cite

Purpose This paper aims to examine the dynamics of house prices in metropolitan cities in an emerging economy. The purpose of this study is to characterise the house price dynamics and the spatial heterogeneity in the dynamics. Design/methodology/approach The author explores spatial heterogeneity in house price dynamics, using data for 35 Indian cities with a million-plus population. The research methodology uses panel econometrics allowing for spatial heterogeneity, cross-sectional dependence and non-stationary data. The author tests for spatial differences and analyses the income elasticity of prices, the role of construction costs and lending to the real estate industry by commercial banks. Findings Long-term fundamentals drive the Indian housing markets, where wealth parameters are stronger than supply-side parameters such as construction costs or availability of financing for housing projects. The long-term elasticity of house prices to aggregate household deposits (wealth proxy) varies considerably across cities. However, the elasticity estimated at 0.39 is low. The highest coefficient is for Ludhiana (1.14), followed by Bhubaneswar (0.78). The short-term dynamics are robust and show spatial heterogeneity. Short-term momentum (lagged housing price changes) has a parameter value of 0.307. The momentum factor is the crucial dynamic in the short term. The second driver, the reversion rate to long-term equilibrium (estimated at −0.18), is higher than rates reported from developed markets. Research limitations/implications This research applies to markets that require some home equity contributions from buyers of housing services. Practical implications Stakeholders can characterise stable housing markets based on long-term fundamental value and short-run house price dynamics. Because stable housing markets benefit all stakeholders, weak or non-existent mean reversion dynamics may prompt the intervention of policymakers. The role of urban planners, and local and regional governance, is essential to remove the bottlenecks from the demand side or supply side factors that can lead to runaway prices. Originality/value Existing literature is concerned about the risk of a housing bubble due to relaxed credit norms. To prevent housing market bubbles, some regulators require higher contributions from home buyers in the form of equity. The dynamics of house prices in markets with higher owner equity requirements vary from high-leverage markets. The influence of wealth effects is examined using novel data sets. This research, documents in an emerging market context, the observations cited in low-leverage developed markets such as Germany and Japan.

show abstract

“…The resulting price increases generally have far-reaching social and economic consequences. Despite the importance of the issue, international evidence on the responsiveness of housing supply remains scarce, although a growing body of work is addressing the subject (Bétin and Ziemann, 2019;Cavalleri et al, 2019).…”

Section: The Basic Functioning Of Housing Markets In Cities: An Overviewmentioning

confidence: 99%

Housing policies for sustainable and inclusive cities

Moreno-Monroy¹,

Gars²,

Matsumoto³

et al. 2020

OECD Regional Development Working Papers

View full text Add to dashboard Cite

PUBE 2  HOUSING POLICIES FOR SUSTAINABLE AND INCLUSIVE CITIES © OECD 2020 ABOUT THE OECDThe OECD is a multi-disciplinary inter-governmental organisation of 36 member countries which engages in its work an increasing number of non-members from all regions of the world. The Organisation's core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of 250 specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and co-ordinate domestic and international policies. More information available: www.oecd.org. ABOUT OECD REGIONAL DEVELOPMENT WORKING PAPERSWorking papers from the Regional Development Policy Division of the OECD cover a full range of topics including regional statistics and analysis, urban governance and economics, rural governance and economics, and multi-level governance. Depending on the programme of work, the papers can cover specific topics such as regional innovation and networks, the determinants of regional growth or fiscal consolidation at the subnational level. OECD Regional Development Working Papers are published on http://www.oecd.org/cfe/regional-policy.

show abstract

How responsive are housing markets in the OECD? Regional level estimates

Cited by 5 publications

References 6 publications

Confronting the cost-of-living and housing crisis in cities

Confronting the cost-of-living and housing crisis in cities

House price dynamics under lower leverage: the case of metropolitan cities in India

Housing policies for sustainable and inclusive cities

Contact Info

Product

Resources

About