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CAWM Discussion Papers, Universität Münster >
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http://hdl.handle.net/10419/57924
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| Title: | | House prices, housing development costs, and the supply of new single-family housing in German counties and cities  |
| Authors: | | Lerbs, Oliver W. |
| Issue Date: | | 2012 |
| Series/Report no.: | | CAWM Discussion Paper / Centrum für Angewandte Wirtschaftsforschung Münster 57 |
| Abstract: | | This paper employs panel data on 413 German counties and cities from 2004 to 2009 to investigate the supply of new single-family housing in local housing markets. New local housing supply is measured by the annual number of construction permits in relation to the existing single-family housing stock. This supply indicator is econometrically related to existing home prices and new housing development costs, which include the costs of housing construction and vacant land in a given location. The results suggest that both higher prices for existing homes and recent increases in development costs are positively associated with local single-family home permit rates. Instead, higher levels of development costs turn out to dampen construction activity. The average local price elasticity of new single-family home supply is considerably less than one, with surprising differences across the urban hierarchy. |
| Subjects: | | new housing supply local housing markets panel data |
| JEL: | | R12 R31 C31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CAWM Discussion Papers, Universität Münster
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