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Place-based determinants of housing prices in Europe

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Abstract

This study investigates place-based determinants of housing prices across the EU, looking at factors such as housing supply constraints, demographic trends, short-term rentals (STRs), accessibility, household income, geographical advantages, and other factors at municipal scale resolution. Key findings indicate that higher prices correlate with supply and demand imbalances (high demand driven by socioeconomic dynamics an limited supply elasticity). STRs, particularly in urban areas, have association with elevated sales prices, but the data does not allow to establish causality. STRs constitute only 1.2% of EU dwellings and are unlikely to generate widespread impact on the housing sector. The analysis reveals a nearly 20% stock of housing in 2021 which are not used as primary residence (either complete vacant or used ocasionally or seasonally), exacerbating supply shortages especially in areas in high demand for housing. Policy recommendations emphasize addressing structural barriers to housing supply, improving data on vacant properties, and a high subsidiarity in the management of STR, to better balance benefits and risks. The study supports the EU’s housing affordability agenda.

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  • Batista Filipe & Curtale Riccardo & Ribeiro Barranco Ricardo & Marconi Mattia & Tucci Michele, 2025. "Place-based determinants of housing prices in Europe," JRC Research Reports JRC145033, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc145033
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC145033
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    1. Ales Melecky & Daniel Paksi, 2024. "Drivers of European housing prices in the new millennium: demand, financial, and supply determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(3), pages 731-753, August.
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