Estimating regional house price levels

While quality‐adjusted indices tracing the evolutions of regional house prices are increasingly available, this is less the case for data on regional house price levels. Yet, such information is fundamental to assess housing affordability and barriers to labour mobility. This article puts forward a...

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Bibliographic Details
Published in:The Review of income and wealth 2024-12, Vol.70 (4), p.1116-1141
Main Authors: Pionnier, Pierre‐Alain, Schuffels, Johannes
Format: Article
Language:English
Subjects:
Affordability
Affordable housing
COVID-19
house price indices
house price levels
Housing
Housing prices
Indexes
Labor migration
Mobility
Occupational mobility
Price levels
Prices
regional statistics
Regions
Spain
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Summary:While quality‐adjusted indices tracing the evolutions of regional house prices are increasingly available, this is less the case for data on regional house price levels. Yet, such information is fundamental to assess housing affordability and barriers to labour mobility. This article puts forward a method to compile regional house price levels that are consistent with the evolutions given by house price indices, representative of the underlying stock of dwellings, and based on the information on house price levels that is available at all dates rather than in a single reference period. Results for Spain show that the decline in house prices following the 2008–2009 crisis initially reduced the dispersion in house prices across Spanish regions, but this dispersion has increased again afterwards. Moreover, the relative housing affordability of Madrid deteriorated compared to all other Spanish regions in the last decade. Monitoring whether COVID‐19 will reverse this trend will be key.
ISSN:0034-6586
1475-4991
DOI:10.1111/roiw.12676