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Border Effects in House Prices

Author

Listed:
  • Martin Micheli
  • Jan Rouwendal
  • Jasper Dekkers

Abstract

This article estimates the effect of the Dutch–German border on house prices. We argue that the difference between house prices at the border indicates the willingness to pay to stay in a country compared to living across the border. After a change in the tax rules in 2001, migration from the Netherlands to Germany increased substantially and the gradient of Dutch house price towards the German border steepened. Combining a German and Dutch real estate dataset and using different estimation strategies, we find that asking prices of comparable housing drop by about 16% when one crosses the Dutch–German border.

Suggested Citation

  • Martin Micheli & Jan Rouwendal & Jasper Dekkers, 2019. "Border Effects in House Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 47(3), pages 757-783, September.
    • Handle: RePEc:bla:reesec:v:47:y:2019:i:3:p:757-783
    DOI: 10.1111/1540-6229.12255
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    Cited by:

    1. Bruns, Daniel & Thomsen, Stephan L., 2025. "The Impact of Germany's Coal Phase-Out on Local Property Values," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325450, Verein für Socialpolitik / German Economic Association.
    2. Anja M. Hahn & Konstantin A. Kholodilin & Sofie R. Waltl & Marco Fongoni, 2024. "Forward to the Past: Short-Term Effects of the Rent Freeze in Berlin," Management Science, INFORMS, vol. 70(3), pages 1901-1923, March.
    3. Frondel, Manuel & Kussel, Gerhard & Sommer, Stephan & Vance, Colin, 2019. "Local cost for global benefit: The case of wind turbines," Ruhr Economic Papers 791, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen, revised 2019.
    4. Dominik Engel & Philip Gärtner & Hans-Joachim Linke, 2021. "Der Zusammenhang zwischen Wohnungsgröße und Miethöhe in Deutschland und dessen Einfluss auf die Projektentwicklung [The correlation of apartment size and rent in Germany and its influence on projec," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 7(2), pages 99-119, October.
    5. Hoffmann, Christin & Byrukuri Gangadhar, Shanmukha Srinivas & Müsgens, Felix, 2025. "Smells like Green Energy: The Impact of Bioenergy Production on Residential Property Values in Germany," Energy Economics, Elsevier, vol. 145(C).
    6. Jacobs-Crisioni, Chris & Koomen, Eric, 2017. "Population growth, accessibility spillovers and persistent borders: Historical growth in West-European municipalities," Journal of Transport Geography, Elsevier, vol. 62(C), pages 80-91.
    7. Darius Kulikauskas, 2015. "Measuring fundamental housing prices in the Baltic States: empirical approach," ERES eres2015_31, European Real Estate Society (ERES).

    More about this item

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • F15 - International Economics - - Trade - - - Economic Integration
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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