This Technical Report documents the construction and coverage of the IWH European Real Estate Index (EREI). Since 2018, we have used machine-learning methods to collect monthly listings of residential real estate available for sale or rent in up to 20 European countries. The Technical Report...

The aim of the study was to develop a method for estimating the profitability of housing investments. Market practice shows that the profitability of this type of investment is influenced by specific determinants that are absent in the classical approach to profitability analysis. The most...

Bedingt durch den Mix aus gestiegenen Zinsen und gestiegenen Baukosten befindet sich der Wohnungsneubau in Deutschland in einer sehr schwierigen Lage. Darüber hinaus wird die Lage erschwert durch Unsicherheiten über zukünftige Mietregulierungen, Klimaschutzmaßnahmen, Stadtentwicklungstrends...

This paper introduces short-term and long-term rental investments into a standard portfolio choice model to analyze the impacts of Airbnb on housing and wealth allocations in New York City. Despite their simplicities, the models successfully explain the housing allocations, with and without the...

The empirical literature on models of cyclical growth and distribution still lacks an explicit treatment of capital accumulation. Further, and from different theoretical perspectives, residential investment is seen as a critical driver of the business cycle. This paper addresses both issues....

This paper explores the relationship between land tenure security and housing investment among households in Bangladeshi poor settlements. The level of housing investment is measured through the type of physical structure of the house, or more specifically, floor materials. Cluster-robust...

The environment for investment in housing construction has changed drastically. Rising interest rates and construction costs are leading to a signifi cant decline in investment activity. This will exacerbate the shortage on the housing market, as refugees from Ukraine also require housing on a...

This study applies a model averaging approach to conditionally forecast housing investment in the largest euro area countries and the euro area. To account for substantial modelling uncertainty, it estimates many vector error correction models (VECMs) using a wide set of short and long-run...

This study applies a model averaging approach to conditionally forecast housing investment in the largest euro area countries and the euro area. To account for substantial modelling uncertainty, it estimates many vector error correction models (VECMs) using a wide set of short and long-run...

Previous efforts exploring options to increase residential sector's energy efficiency have overlooked that highlighting co-benefits associated with energy efficiency may represent a promising strategy to draw attention from decision makers. For instance, in addition to savings in energy costs,...

This study evaluates the impact of the second home restriction (Lex Weber) on construction investments in Switzerland. Different specifications and variations are defined, and the changes in investment behaviour are analysed. A first basic model considers the variation in investments through a...

The empirical literature on neo-Goodwinian models of growth and distribution still lacks an explicit treatment of capital accumulation. Further, and across different theoretical approaches, residential investment is seen as a critical driver of the business cycle. This paper addresses these two...

We develop a stylized model to explore the relationship between local corruption and over-investment in residential housing sector. The model has four predictions: i) higher corruption increases investment in the residential housing sector, ii) higher corruption decreases investment in the...

This paper explores the property prices and investment dynamics over the business cycle when there is competition between households and firms for real estate. We introduce a construction sector into an RBC framework, which uses land, capital, and labour to produce both commercial and...

This paper investigates the impact of social interactions on housing investment decisions using comprehensive longitudinal micro-level data from the entire Swedish population and sales data detailing the physical attributes of the nation’s housing stock. The primary objective is to understand...

This paper explores the property prices and investment dynamics over the business cycle when there is competition between households and firms for real estate. We introduce a construction sector into an RBC framework, which uses land, capital and labour to produce both commercial and residential...

We provide new evidence that short-term rental (STR) platforms like Airbnb incentivize residential real estate investment. We exploit two complementary identification strategies. First, we use variation in the timing of STR regulations to estimate the effect of regulation on both Airbnb listings...

The two major earthquakes which struck northwestern Turkey in 1999, not only caused enormous amounts of death, destruction and suffering, but also exposed rampant government corruption involving construction and zoning code violations. The incompetence shown by the government in providing...

The unpegging of China’s currency in 2005 creates positive wealth effects that trigger Chinese foreign buyers’ responses in the intensive margin to pay 3.42% more in housing prices relative to other foreign buyers. We find evidence of a higher propensity to purchase housing units with more...

Migration policies need to consider how immigration affects investment behavior and productivity, and how these effects vary with the type of migration. College-educated immigrants may do more to stimulate foreign direct investment and research and development than low-skilled immigrants, and...

We analyze the evolution and main drivers of residential investment in 15 advanced economies using a large panel with quarterly data since the 1970s. Residential investment is a notably volatile component of real GDP in all countries in the sample. Real house price growth, net migration inflows,...

This paper studies the transmission of the major shocks in the U.S. housing market in the 2000s to consumption and residential investment. Using geographically disaggregated data, I show that residential investment is more responsive to these shocks than consumption, as measured by elasticities...

The emergence of platform-based home sharing, such as Airbnb, allows investors to purchase houses from residential markets and rent them out as transient accommodations. Debates on housing affordability have arisen due to redistributed home supply from residential markets to home-sharing...