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The housing price index and the number of housing units: a surprising co-movement in France

Author

Listed:
  • Bator Anne

    (University of Perpignan Via Domitia)

  • Hervé Blanchard

    (University of Perpignan Via Domitia)

Abstract

We examine the relationship between the evolution of the housing price index and the number of housing units from 1968 to 2015. Using a simultaneous equation framework, we find a positive relationship between housing supply and the housing price index. Our research suggests that there is an analogy between the Braess paradox and the housing problem. We find a positive income elasticity of demand as well as a positive price elasticity of demand that tends to zero.

Suggested Citation

  • Bator Anne & Hervé Blanchard, 2024. "The housing price index and the number of housing units: a surprising co-movement in France," Economics Bulletin, AccessEcon, vol. 44(1), pages 490-499.
    • Handle: RePEc:ebl:ecbull:eb-22-00194
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    References listed on IDEAS

    as
    1. Lucienne Cahen, 1957. "Évolution des conditions de logement en France depuis cent ans," Etudes et conjoncture - Institut national de la statistique et des études économiques, Programme National Persée, vol. 12(10), pages 985-1376.
    2. Nathalie Girouard & Mike Kennedy & Paul van den Noord & Christophe André, 2006. "Recent House Price Developments: The Role of Fundamentals," OECD Economics Department Working Papers 475, OECD Publishing.
    3. Herath, Shanaka & Maier, Gunther, 2010. "The hedonic price method in real estate and housing market research. A review of the literature," SRE-Discussion Papers 2010/03, WU Vienna University of Economics and Business.
    4. Gregory C. Chow & Linlin Niu, 2015. "Housing Prices in Urban China as Determined by Demand and Supply," Pacific Economic Review, Wiley Blackwell, vol. 20(1), pages 1-16, February.
    5. repec:cai:popine:popu_p1985_40n6_0935 is not listed on IDEAS
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    More about this item

    Keywords

    Braess paradox; housing market; simultaneous equations;
    All these keywords.

    JEL classification:

    • Y1 - Miscellaneous Categories - - Data: Tables and Charts
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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