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Explaining the Spatial Variation in Homeownership Rates: Results for German Regions

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  • Oliver Lerbs
  • Christian Oberst

Abstract

This paper employs cross-sectional data on 96 German regions to investigate the interregional variability of homeownership rates. Among the explanatory variables, the analysis includes important regional housing market indicators as well as regional socio-demographic composition, urbanization and labor market performance. An estimation strategy is chosen which accounts for different forms of spatial dependence among the regional units. We find that regional differences in the relative price of owning versus renting, and the affordability of owner-occupied housing play a key role in explaining why homeownership rates vary so substantially across the country. The results indicate significant neighborhood effects for several variables.

Suggested Citation

  • Oliver Lerbs & Christian Oberst, 2011. "Explaining the Spatial Variation in Homeownership Rates: Results for German Regions," CESifo Working Paper Series 3377, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3377
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    Cited by:

    1. Berlemann, Michael & Jahn, Vera, 2014. "Governance, Firm Size and Innovative Capacity: Regional Empirical Evidence for Germany," Working Paper 150/2014, Helmut Schmidt University, Hamburg.
    2. repec:taf:regstd:v:50:y:2016:i:11:p:1819-1833 is not listed on IDEAS
    3. Fuess, Roland & Lerbs, Oliver, 2017. "Do Local Governments Tax Homeowner Communities Differently?," Working Papers on Finance 1714, University of St. Gallen, School of Finance.
    4. Michael Berlemann & Vera Jahn, 2016. "Regional Importance of Mittelstand Firms and Innovation Performance," Regional Studies, Taylor & Francis Journals, vol. 50(11), pages 1819-1833, November.
    5. Tuukka Saarimaa & Mika Kortelainen, 2012. "Do Homeowners Benefit the Neighborhood? Evidence from Semiparametric Hedonic Regressions," ERSA conference papers ersa12p472, European Regional Science Association.
    6. Lerbs, Oliver W., 2012. "House prices, housing development costs, and the supply of new single-family housing in German counties and cities," CAWM Discussion Papers 57, University of Münster, Center of Applied Economic Research Münster (CAWM).
    7. Sunak, Yasin & Madlener, Reinhard, 2016. "The impact of wind farm visibility on property values: A spatial difference-in-differences analysis," Energy Economics, Elsevier, vol. 55(C), pages 79-91.
    8. Oliver W. Lerbs, 2014. "House prices, housing development costs, and the supply of new single-family housing in German counties and cities," Journal of Property Research, Taylor & Francis Journals, vol. 31(3), pages 183-210, September.
    9. Mika Kortelainen & Tuukka Saarimaa, 2012. "Do Homeowners Benefit Urban Neighborhoods? Evidence from Housing Prices," SERC Discussion Papers 0110, Spatial Economics Research Centre, LSE.
    10. Sebastian Kohl, 2016. "Urban History Matters: Explaining the German--American Homeownership Gap," Housing Studies, Taylor & Francis Journals, vol. 31(6), pages 694-713, September.
    11. Jahn, Vera, 2015. "The Importance of Mittelstand Firms for Regional Apprenticeship Activity - Lessons for Policy -," Working Paper 158/2015, Helmut Schmidt University, Hamburg.
    12. Wolf, Nikolaus & Caruana-Galizia, Paul, 2015. "Bombs, homes, and jobs: Revisiting the Oswald hypothesis for Germany," Economics Letters, Elsevier, vol. 135(C), pages 65-68.
    13. Sunak, Yasin & Madlener, Reinhard, 2014. "Local Impacts of Wind Farms on Property Values: A Spatial Difference-in-Differences Analysis," FCN Working Papers 1/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Oct 2014.
    14. Oliver Lerbs, "undated". "House Prices, Housing Development Costs, and the Supply of New Single-Family Housing in German Counties and Cities," Working Papers 201283, Institute of Spatial and Housing Economics, Munster Universitary.
    15. Martin, Thorsten, 2017. "You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany," MPRA Paper 78998, University Library of Munich, Germany.
    16. Wolfgang Nagl & Robert Lehmann, 2015. "Distance is crucially important, at least for neighbors' foreign employment at the district level," ERSA conference papers ersa15p366, European Regional Science Association.
    17. Konstantin A. Kholodilin & Andreas Mense, 2011. "Can Internet Ads Serve as an Indicator of Homeownership Rates?," Discussion Papers of DIW Berlin 1168, DIW Berlin, German Institute for Economic Research.
    18. Jahn, Vera, 2017. "The Importance of Mittelstand Firms for Regional Apprenticeship Activity," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168260, Verein für Socialpolitik / German Economic Association.
    19. Oberst, Christian & Oelgemöller, Jens, 2013. "Economic Growth and Regional Labor Market Development in German Regions: Okun’s Law in a Spatial Context," FCN Working Papers 5/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

    More about this item

    Keywords

    homeownership; regional housing markets; spatial econometrics;

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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