IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2025i157p3-62.html
   My bibliography  Save this article

Contrasting Effects of Ownership Incentives on New and Second-Hand Housing Prices

Author

Listed:
  • Sylvain Chareyron
  • Tidiane Ly
  • Yohann Trouvé-Sargison

Abstract

This article examines the impact of ownership incentives on the housing market, with a specific focus on their differentiated effects on new and existing dwellings. We develop a novel theoretical model in which owners of new housing benefit from homeownership subsidies or rental investment incentives. We show that while both incentives increase the price of new housing, they reduce old housing prices and have an ambiguous impact on average housing prices. These effects result from residential spillovers from the old housing market to the new housing market. We empirically test these findings by exploiting a 2014 French reform that modified the local eligibility conditions for these programs. Difference-in-differences estimates show that in the five years following the reform, the price of new housing increased by approximately 6% in municipalities in which the eligibility conditions were relaxed compared to those for which remained unchanged. Our results also suggest that prices diminish in old dwellings.

Suggested Citation

  • Sylvain Chareyron & Tidiane Ly & Yohann Trouvé-Sargison, 2025. "Contrasting Effects of Ownership Incentives on New and Second-Hand Housing Prices," Annals of Economics and Statistics, GENES, issue 157, pages 3-62.
    • Handle: RePEc:adr:anecst:y:2025:i:157:p:3-62
    DOI: 10.2307/48820443
    as

    Download full text from publisher

    File URL: https://www.jstor.org/stable/48820443
    Download Restriction: no
    File URL: https://libkey.io/10.2307/48820443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Housing Prices; Mobility; Interest-Free Loan Policy; Rent Control; Difference-in-Differences.;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2025:i:157:p:3-62. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.