Advanced Search
MyIDEAS: Login to save this paper or follow this series

Finland's Housing Market: Reducing Risks and Improving Policies

Contents:

Author Info

  • Laura Vartia
Registered author(s):

    Abstract

    While pronounced cycles in house prices have been a major cause of macroeconomic instability in the past, current house price developments do not yet suggest an overheating of the housing market. However, several important concerns are related to both direct effects of housing markets on overall activity and to more structural and regional issues. A factor making housing markets and the macro economy vulnerable to interestrate shocks is the high share of mortgage loans linked to variable interest rates. Tax subsidies to housing may largely be capitalised in higher land prices rather than increasing housing availability to the extent that slow planning procedures and municipalities' unwillingness to provide building land have limited the growth of the housing stock in growth regions. This would argue for improving municipalities' incentives to provide building land, speeding up planning procedures and a phased removal of the tax advantage associated with housing. Furthermore, the provision of social housing and the housing allowance system should be better targeted on those most in need of affordable housing. Le marché du logement en Finlande : réduire les risques et améliorer les politiques Si, par le passé, les cycles marqués qu'ont connus les prix des logements ont été un facteur majeur d'instabilité économique, l'évolution actuelle des prix des logements ne donne pas encore à penser qu'il y a surchauffe sur ce marché. Toutefois, les effets directs des marchés du logement sur l'activité globale et des problèmes plus structurels et plus régionaux sont des sujets de préoccupation importants. L'un des facteurs de la vulnérabilité des marchés du logement et de la macroéconomie aux chocs de taux d'intérêt est la part importante des prêts hypothécaires à taux d'intérêt variable. Les aides fiscales au logement peuvent être largement capitalisées dans la hausse des prix des terrains au lieu d'accroître le nombre de logements disponibles dans la mesure où la lenteur des procédures de planification et la réticence des communes à offrir des terrains constructibles ont limité la croissance du parc de logements dans les régions en expansion. Cela plaide en faveur de politiques visant à inciter davantage les communes à offrir des terrains à bâtir, à accélérer les procédures de planification et à supprimer progressivement l'avantage fiscal dont bénéficie le logement. En outre, l'offre de logements sociaux et le régime de l'allocation logement devraient être davantage ciblés sur les personnes ayant le plus de besoin de logements à un prix abordable.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1787/045113767231
    Download Restriction: no

    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 514.

    as in new window
    Length:
    Date of creation: 08 Sep 2006
    Date of revision:
    Handle: RePEc:oec:ecoaaa:514-en

    Contact details of provider:
    Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
    Phone: 33-(0)-1-45 24 82 00
    Fax: 33-(0)-1-45 24 85 00
    Email:
    Web page: http://www.oecd.org
    More information through EDIRC

    Related research

    Keywords: property tax; housing support; house prices; mortgages; housing wealth; social housing; richesse; impôt sur la propriété; emprunts hypothécaires; logement social; aides au logement; prix des logements;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:514-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.