IDEAS home Printed from
   My bibliography  Save this article

The Housing Subsidy Scheme and Households' Wealth in Hungary: Urban Legends and Facts


  • Gabor Vadas


As a significant part of national wealth, households' wealth is a central issue in both policy debate and academic literature. Nevertheless, in Hungary little effort has been made so far to conduct a thorough evaluation of households' wealth over the past decade. This study provides a formal evaluation of Hungarian wealth and connects the development of components of wealth to the wider economy. Based on international comparison and econometric techniques, it is confirmed that the recent level of financial wealth among Hungarian households is still relatively low, whilst the level of current housing wealth is not evidently below the equilibrium level. These results provide an explanation as to why the government's housing subsidy scheme has a major effect on house prices rather than housing supply. Moreover, soaring house prices, supported by housing loans, suppressed financial savings. The 'saving disaster', i.e. small or in some periods zero saving rates, experienced in the early 2000s, to a certain extent is the other side of the 'saving miracle' of the early and mid-1990s when households rearranged their wealth portfolio from real assets to financial assets implying decreasing house prices and a higher saving rate.

Suggested Citation

  • Gabor Vadas, 2009. "The Housing Subsidy Scheme and Households' Wealth in Hungary: Urban Legends and Facts," European Journal of Housing Policy, Taylor and Francis Journals, vol. 9(1), pages 1-24.
  • Handle: RePEc:taf:eurjhp:v:9:y:2009:i:1:p:1-24
    DOI: 10.1080/14616710802693508

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Duong, Nguyen Binh, 2016. "Vietnam-EU Free Trade Agreement: Impact and Policy Implications for Vietnam," Papers 992, World Trade Institute.


    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:taf:eurjhp:v:9:y:2009:i:1:p:1-24. 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: (Chris Longhurst). 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.

    We have no 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.

    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.