Abstract
This paper establishes a simple affordability model that implicitly incorporates the major Dutch market features to elucidate long-run house prices under a regulatory environment. The results reveal a long-run relationship for house prices under strict regulations. The association among house prices, income, interest rates, and inflation is verified using an aggregated dataset. In the long-run, incomes and interest rates function as the two prime forces driving price dynamics, whereas the role of inflation is limited.
Original language | English |
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Pages (from-to) | 1-25 |
Journal | Housing Studies |
DOIs | |
Publication status | E-pub ahead of print - 18 Jul 2017 |
Keywords
- House prices
- long-run equilibrium
- regulations
- the Netherlands