Agenda for the Housing Market

The housing market is the theme of the Reports to the 2008 Annual Meeting of the Royal Netherlands Economic Association. Current housing market policies in the Netherlands generate substantial welfare losses. The direct and indirect subsidies on housing distort the housing market, house moving behav...

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Bibliographic Details
Published in:De Economist (Netherlands) 2009-06, Vol.157 (2), p.251-264
Main Author: Don, Henk
Format: Article
Language:English
Subjects:
Construction costs
Councils
D61
E64
Economic Policy
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Economists
Housing
Housing prices
housing societies
Housing subsidies
Interest rates
L85
Labor market
Land policy
Land use planning
Macroeconomics
Market prices
Microeconomics
Netherlands
physical planning
Planning methods
Public Finance
R52
Real estate market
Studies
Subsidies
Tax incentives
Tax rates
Tax reform
Transfer taxes
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Summary:The housing market is the theme of the Reports to the 2008 Annual Meeting of the Royal Netherlands Economic Association. Current housing market policies in the Netherlands generate substantial welfare losses. The direct and indirect subsidies on housing distort the housing market, house moving behaviour, the labour market and the asset portfolio of households. The welfare loss is estimated at more than 6 billion euro per year. In addition, physical planning restrictions cost at least 3 billion euro per year, a price which is paid for the conservation of open space and nature, especially in the Green Heart of the Randstad. Developments on the housing market over the last fifteen years and the sizeable welfare losses from current policies are sufficient reason to develop an agenda for reform. The Reports suggest several elements for such an agenda, including a gradual reduction of housing subsidies in the owner–occupier sector as well as in the rental sector, an easier land policy to better meet the qualitative housing needs of the population, and an extension of the social tasks for the housing societies.
ISSN:0013-063X
1572-9982
DOI:10.1007/s10645-009-9114-9