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Housing affordability during the urban transition in Spain

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  • Rosés, Joan R.
  • Carmona Pidal, Juan Antonio
  • Lampe, Markus

Abstract

During the decades previous to the Civil War, Spain experienced a rapid process of urbanization, which was accompanied by the demographic transition and sizeable rural-urban migrations. This article investigates how urban housing markets reacted to these far-reaching changes that increased demand for dwellings. To this end, we employ a new hedonic index of real housing prices and construct a cross-regional panel dataset of rents and housing price fundamentals. This new evidence indicates that rents were not a significant financial burden on low-income families and, hence, housing was affordable for working classes. Also, we show that families' access to new homes was facilitated by a sizable growth of housing supply. Substantial investments in urban infrastructure and the institutional framework enabled the construction of new homes at affordable prices. Our results suggest that housing problems were not pervasive during the urban transition as the literature often seems to claim.

Suggested Citation

  • Rosés, Joan R. & Carmona Pidal, Juan Antonio & Lampe, Markus, 2014. "Housing affordability during the urban transition in Spain," IFCS - Working Papers in Economic History.WH wp14-05, Universidad Carlos III de Madrid. Instituto Figuerola.
  • Handle: RePEc:cte:whrepe:wp14-05
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    Cited by:

    1. Konstantin A. Kholodilin & Leonid E. Limonov & Sofie R. Waltl, 2019. "Housing Rent Dynamics and Rent Regulation in St. Petersburg (1880-1917)," Department of Economics Working Papers wuwp279, Vienna University of Economics and Business, Department of Economics.
    2. repec:oup:ereveh:v:20:y:2016:i:3:p:322-344. is not listed on IDEAS
    3. repec:zbw:espost:167600 is not listed on IDEAS

    More about this item

    Keywords

    Demand and supply of housing;

    JEL classification:

    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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