Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336814 
Year of Publication: 
2026
Series/Report no.: 
SAFE Working Paper No. 467
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
We show that high-income buyers earn higher capital gains on housing using detailed transaction data from Denmark. Geographic location statistically accounts for nearly all the difference, with little role for aggregate market timing, property type, or other buyer characteristics. This finding is consistent with income-based sorting, whereby higher-income households systematically sort into locations with persistently higher price growth. We test whether credit conditions shape access to locations with higher house-price growth and find no detectable change in buyer composition by income rank around major credit expansions and contractions.
Subjects: 
Housing
wealth inequality
affordability
spatial sorting
inequality
JEL: 
D31
G51
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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