Market Structure and Urbanization: The Impact of Competition Among Developers on Housing Production in France

Maxime Charreire, Marion Girard and Marie-Noëlle Lefebvre

ERES from European Real Estate Society (ERES)

Abstract: This paper analyzes the effects of competition between major construction and development firms and other developers on housing production in France, offering both theoretical and empirical contributions. Theoretically, a static monocentric city model shows that major firms, due to lower marginal costs, prioritize high-demand central areas, whereas other developers focus their production activities in peripheral zones. Empirically, an analysis of building permit data (2013–2022) reveals that major firms concentrate their projects in metropolitan areas and in the core of urban regions, with larger-scale developments. This study sheds light on the role of market competition structure in shaping urbanization and the geographic distribution of housing production in France.

Keywords: Competition; Monocentric city model; Real Estate Developers; Urbanization (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
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