This paper establishes a simple affordability model that implicitly incorporates the major Dutch market features to elucidate long-run house prices under a regulatory environment. The results reveal a long-run relationship for house prices under strict regulations. The association among house prices, income, interest rates, and inflation is verified using an aggregated dataset. In the long-run, incomes and interest rates function as the two prime forces driving price dynamics, whereas the role of inflation is limited.

Original languageEnglish
Pages (from-to)1-25
JournalHousing Studies
Publication statusE-pub ahead of print - 18 Jul 2017

    Research areas

  • House prices, long-run equilibrium, regulations, the Netherlands

ID: 51452156