IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Housing Price and Investment Dynamics in Finland

  • Christophe André
  • Clara García

The Finnish housing market is volatile. After declining significantly as the global financial crisis unfolded, housing prices and investment recovered to reach new peaks. This paper uses a small econometric model to assess the role of fundamentals in housing price and investment developments. Current housing valuations and residential investment are broadly in line with the model estimates. Housing market volatility is exacerbated by fluctuations in the wider economy, which given its size and openness is vulnerable to external shocks. Structural features of the housing market also make it prone to volatility. The paper describes institutional characteristics of the Finnish housing market that bear on house price volatility and supply responsiveness. These relate to the structure of tenures, housing taxation and subsidies, social housing, financing, land-use planning, and competition in the construction industry. Prix du logement et la dynamique d'investissement en Finlande Le marché du logement finlandais est volatile. Après avoir diminué de manière significative durant la crise financière mondiale, les prix des logements et l'investissement résidentiel se sont redressés et ont atteint de nouveaux sommets. Ce document de travail utilise un petit modèle économétrique pour évaluer le rôle des fondamentaux dans les évolutions des prix des logements et de l’investissement résidentiel. Les valorisations actuelles des logements et l'investissement résidentiel sont globalement conformes estimations du modèle. La volatilité du marché du logement est exacerbée par les fluctuations de l'économie, qui compte tenu de sa taille et de son ouverture est vulnérable aux chocs extérieurs. Les caractéristiques structurelles du marché du logement le rendent également sujet à la volatilité. Le document décrit les caractéristiques institutionnelles du marché du logement finlandais qui influent sur la volatilité des prix et la réactivité de l'offre de logement. Celles-ci concernent la répartition entre propriétaires et locataires, la fiscalité du logement et les subventions, le logement social, le financement, l'aménagement du territoire, et la concurrence dans l'industrie de la construction.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://dx.doi.org/10.1787/5k98rwldjr44-en
Our checks indicate that this address may not be valid because: 403 Forbidden (http://dx.doi.org/10.1787/5k98rwldjr44-en [303 See Other]--> http://www.oecd-ilibrary.org/economics/housing-price-and-investment-dynamics-in-finland_5k98rwldjr44-en). If this is indeed the case, please notify ()


Download Restriction: no

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 962.

as
in new window

Length:
Date of creation: 23 May 2012
Date of revision:
Handle: RePEc:oec:ecoaaa:962-en
Contact details of provider: Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page: http://www.oecd.orgEmail:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:962-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.