Demography and housing demand—what can we learn from residential construction data?
AbstractThere are obvious reasons why residential construction should depend on the populationâs age structure. We estimate this relation on Swedish time series data and OECD panel data. Large groups of young adults are associated with higher rates of residential construction. But there is also a significant negative effect from those above 75. Age effects on residential investment are robust and forecast well out-of-sample in contrast to the corresponding house price results. This may explain why the debate around house prices and demography has been rather inconclusive. Rapidly aging populations in the industrialized world makes the future look bleak for the construction industry of these countries.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Population Economics.
Volume (Year): 21 (2008)
Issue (Month): 3 (July)
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Other versions of this item:
- Lindh, Thomas & Malmberg, Bo, 2005. "Demography and housing demand - What can we learn from residential construction data?," Arbetsrapport 2005:20, Institute for Futures Studies.
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
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