In the long term, real estate in Germany and the USA delivers high returns of 5% to 8% per year. However, the path to these average yields differs greatly: total returns on the German real estate markets tend to develop similarly to the gross domestic product with only slight fluctuations. The...

This paper analyses the behaviour of prices and supply on the German housing market taking into account the interaction between prices and quantities. A novel price index for residential property prices covering the whole country going back to 1993 is used in a macroeconomic model to estimate...

This paper examines the behaviour of housing prices and identifies their determinants across Czech regions from 2000 to 2017. The effect of a wide range of variables on apartment prices is analyzed on quarterly data for all regions of the Czech Republic using panel dynamic OLS estimator....

In this paper, we construct a quality-adjusted rent index for the office market in Oslo. Commonly used rent indices are based on average developments or expert opinions. Such indices often suffer from compositional biases or low data coverage. Using detailed data from more than 16,000 rental...

This paper investigates whether housing collateral is important to the business cycle in China. We develop two models, one without housing collateral as benchmark and one variant allowing for it. Indirect Inference procedure tests these two models' compatibility with the data. We find that the...

Real estate markets are subject to dynamic, ever-changing influences from location, amenities and neighborhoods; regulation, zoning and population changes; but also - macroeconomic variables, such as interest rates, inflation and economic cycles. The decision to buy or rent a durable,...

Rund 28% der Haushalte in Luxemburg sind Mieter einer Immobilie, um dort zu wohnen und/oder zu arbeiten. Im geschäftlichen Bereich werden Räumlichkeiten und Grundstücke für gewerbliche, handwerkliche, industrielle Zwecke oder auch zur Ausübung eines selbständigen Berufs gemietet. In allen...

Which housing characteristics are important for understanding homeownership rates? How are housing characteristics priced in the rental and owner-occupied markets? And what can the answers to the previous questions tell us about economic theories of homeownership? Using the English Housing...

In the long term, real estate in Germany and the USA delivers high returns of 5% to 8% per year. However, the path to these average yields differs greatly: total returns on the German real estate markets tend to develop similarly to the gross domestic product with only slight fluctuations. The...

We extend the Central Bank of Malta's core DSGE model - MEDSEA - with housing and financial frictions to capture the important theoretical links betweeen house prices, credit and consumption. The model features a rich set of features that are inherent to small open economies in a monetary union....

This paper assesses to which degree housing purchase subsidies are capitalized into property prices. Using a large-scale micro data set on German house prices, I exploit the introduction of a new subsidy scheme in the state of Bavaria. My difference-indifference estimations at the Bavarian...

Since the onset of the Global Financial Crisis, the presence of institutional investors in housing markets has steadily increased over time. Real estate funds (REIFs) and other housing investment rms leverage large-scale buy-to-rent investments in real estate assets that enable them to set...

Recent developments on German real estate markets show a striking increase of rents, especially in larger towns. This development is, however, not homogeneous: The market dynamics vary between different parts of cities and prices develop highly heterogeneously. Therefore, small-scale results are...

This paper shows, using data from the Family Income and Expenditure Survey, that housing credit has become increasingly available over time in Japan, especially since 2000, and that this has made it easier for Japanese households to purchase housing and enabled them to do so at an earlier age....

The house price in Hong Kong is well-known to be "unaffordable." This paper argues that the commonly used house price-to-income ratio may be misleading in an economy with almost half of the population living in either public rental housing or subsidized ownership. Moreover, we re-focus on the...

This paper examines the effects of real estate transfer taxes (RETT) on house prices using a rich micro dataset on German properties covering the period from 2005 to 2018. We exploit a 2006 constitutional reform that allowed states to set their own RETT rates, leading to frequent increases in...

Over the last years, prices for European office space have reached new peaks. This naturally provokes discussion about a possible overheating in the market. One approach to assess price development of real estate markets is the so-called "user cost approach". Typically, this approach is applied...

This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house...

Following the global financial crisis, many countries have introduced or tightened macroprudential policies. Using an agentbased model (ABM), this paper seeks to measure the impact on house price cycles of two distinct borrower-based macroprudential instruments, namely loan-to-income and...

Aggregate housing demand shocks are an important source of house price fluctuations in the standard macroeconomic models, and through the collateral channel, they drive macroeconomic fluctuations. These reduced-form shocks, however, fail to generate a highly volatile price-to-rent ratio that...

This paper analyses the impact of lending standards for residential real estate (RRE) loans on default rates, using a novel loan-level dataset from the European DataWarehouse (EDW) that covers eight euro area countries. To the best of the authors' knowledge, this paper is the first to use, for...

Korea's housing supply ratio, based on the number of households, and housing stock, based on population size, are rising rapidly on the back of large-scale provisions of apartments. - The supply market, however, has become highly volatile, with sharp recurring ascents and descents, and the...

Based on a behavioral stock-flow housing market model in which the expectation formation behavior of boundedly rational and heterogeneous investors may generate endogenous boom-bust cycles, we explore whether central banks can stabilize housing markets via the interest rate. Using a mix of...