The impact of supply constraints on house prices in England

Christian Hilber and Wouter Vermeulen ()
Additional contact information
Wouter Vermeulen: CPB Netherlands Bureau for Economic Policy Analysis & VU University & Spatial Economics Research Centre

No 2013/28, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: We explore the impact of different types of supply constraints on house prices in England by exploiting a unique panel dataset of 353 local planning authorities ranging from 1974 to 2008. Using exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints-measures, we find that: i) Regulatory constraints have a substantive positive impact on the house price-earnings elasticity; ii) The effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; iii) Uneven topography has a quantitatively less meaningful impact; and iv) The effects of supply constraints are greater during boom than bust periods.

Keywords: House prices; housing supply; supply constraints; land use regulation (search for similar items in EconPapers)
JEL-codes: G12 R11 R21 R31 R52 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://ieb.ub.edu/wp-content/uploads/2018/04/2013-IEB-WorkingPaper-28.pdf (application/pdf)

Related works:
Journal Article: The Impact of Supply Constraints on House Prices in England (2016)
Working Paper: The impact of supply constraints on house prices in England (2016)
Working Paper: The Impact of Supply Constraints on House Prices in England (2012)
Working Paper: The Impact of Supply Constraints on House Prices in England (2012)
Working Paper: The impact of supply constraints on house prices in England (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2013-28

Access Statistics for this paper

More papers in Working Papers from Institut d'Economia de Barcelona (IEB) Contact information at EDIRC.
Bibliographic data for series maintained by ().