Do the Determinants of House Prices Change over Time? Evidence from 200 Years of Transactions Data
||Droes, Martijn; Alex van de Minne
||Do the Determinants of House Prices Change over Time? Evidence from 200 Years of Transactions Data
||23rd Annual European Real Estate Society Conference in Regensburg, Germany
||This paper uses almost 200 years of historical data on house prices and its determinants from Amsterdam, the Netherlands. We find that before 1900 population growth, construction costs and new housing supply are the most important determinants of house price dynamics. After 1900 income starts to play a role and, with the development of the mortgage market, interest rates as well. Directly after World War II population and new housing supply are the key determinants of house prices, which likely reflects the baby boom generation and post-war reconstruction plans. Our results imply that the determinants of house prices are not fixed and reflect the economic state of affairs in each different era.
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||Residential Real Estate
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