IDEAS home Printed from
   My bibliography  Save this article

Chapter 5: House Prices in Europe


  • Lars Calmfors
  • Giancarlo Corsetti
  • Seppo Honkapohja
  • John Kay
  • Willi Leibfritz
  • Gilles Saint-Paul
  • Hans-Werner Sinn
  • Xavier Vives


This chapter considers recent developments of house prices in different European countries. There has been widespread worry that house prices might collapse as happened in Japan, the United Kingdom and the Nordic countries in the early 1990s. The country experiences in the last ten years are far from uniform, with rapid price rises in some countries (for example, Ireland, Spain, the Netherlands and the UK) and only small price increases in other countries (for example, France and Germany). A variety of different economic determinants influence the level of house prices. Houses provide accommodation services, and, being durable assets, investment motives also affect house prices. Analysis of these economic factors suggests that, while current house prices may be overvalued to some extent in some EU countries, there is little evidence of major speculative bubbles in house prices in these countries. In our view, there is no scientific basis for claims that house prices are about to collapse due to a bursting bubble.

Suggested Citation

  • Lars Calmfors & Giancarlo Corsetti & Seppo Honkapohja & John Kay & Willi Leibfritz & Gilles Saint-Paul & Hans-Werner Sinn & Xavier Vives, 2005. "Chapter 5: House Prices in Europe," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 102-112, March.
  • Handle: RePEc:ces:eeagre:v::y:2005:i::p:102-112

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Jonathan McCarthy & Richard Peach, 2004. "Are home prices the next "bubble"?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-17.
    2. Karl E. Case & Robert J. Shiller, 2003. "Is There a Bubble in the Housing Market?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 299-362.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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:ces:eeagre:v::y:2005:i::p:102-112. 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: (Klaus Wohlrabe). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.