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Can’t Buy Me Home – Beliefs, Facts, and Policy in the Housing Affordability Crisis

Author

Listed:
  • Alda Botelho Azevedo

    (Instituto de Ciências Sociais, Universidade de Lisboa)

  • Inês Gonçalves

    (Nova School of Business and Economics, Universidade NOVA de Lisboa)

  • João Pereira dos Santos

    (Queen Mary University of London, ISEG – University of Lisbon, and IZA)

Abstract

Our study investigates public opinion on the housing affordability crisis in Portugal through a nationally representative survey combined with an information provision experiment. Participants were asked to identify perceived causes of rising housing prices, assess their factual knowledge of the housing market and sociodemographic trends, and indicate their preferred policy solutions, carefully framed to reflect trade-offs. Half of the respondents were randomly assigned to receive official statistical information on these trends before indicating their policy preferences. The findings reveal significant heterogeneity in beliefs about the causes of the crisis, pervasive misperceptions regarding market trends, and a limited impact of information provision on policy preferences. These results underscore the challenges of addressing housing policy through informational interventions alone and highlight the need for strategies that integrate behavioral and contextual factors to foster informed public engagement.

Suggested Citation

  • Alda Botelho Azevedo & Inês Gonçalves & João Pereira dos Santos, 2025. "Can’t Buy Me Home – Beliefs, Facts, and Policy in the Housing Affordability Crisis," GEE Papers 191, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jun 2025.
    • Handle: RePEc:mde:wpaper:191
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    File URL: https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_191.pdf
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    Keywords

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    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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