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Housing supply in the Netherlands

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  • Wouter Vermeulen

    ()

  • Jan Rouwendal

    ()

Abstract

In spite of a growing recognition of the importance of supply conditions for the level and volatility of house prices, empirical work on housing supply outside the US is scarce. This paper considers various measures of housing supply in the Netherlands, where real house prices have roughly tripled since 1970. Besides the volume of investment in residential structures and new housing construction in units, we derive time series of structure and location quality in a hedonic analysis. Each of these variables appears to be almost fully inelastic with respect to house prices in at least the short to medium long run. Further analysis of the quality of location index shows that conventional models of competitive land and housing markets cannot account for these findings. However, they may be well explained in terms of the rather extensive body of interventions by the Dutch government.

Suggested Citation

  • Wouter Vermeulen & Jan Rouwendal, 2007. "Housing supply in the Netherlands," CPB Discussion Paper 87, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:87
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    File URL: http://www.cpb.nl/sites/default/files/publicaties/download/housing-supply-netherlands.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Willemijn Van Der Straaten & Jan Rouwendal, 2011. "Why are the commuting distances of power couples so short? An analysis of the location preferences of households," ERSA conference papers ersa10p816, European Regional Science Association.
    2. Sandrine Levasseur, 2013. "Éléments de réflexion sur le foncier et sa contribution au prix de l'immobilier," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(2), pages 365-394.
    3. repec:dgr:rugsom:14019-eef is not listed on IDEAS
    4. Allers, Maarten & Geertsema, Bieuwe, 2014. "The effects of local government amalgamation on public spending and service levels," Research Report 14019-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    5. Or Levkovich & Jan Rouwendal, 2016. "Spatial Planning and Segmentation of the Land Market," Tinbergen Institute Discussion Papers 16-018/VIII, Tinbergen Institute.
    6. repec:eee:pubeco:v:156:y:2017:i:c:p:81-100 is not listed on IDEAS

    More about this item

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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