The fundamental drivers of recent developments in euro area housing investment

Johannes Gareis

Economic Bulletin Boxes, 2026, vol. 1

Abstract: Euro area housing investment has declined steadily in recent years but appears to have bottomed out at the end of 2024. This box analyses the fundamental drivers of recent housing investment dynamics using a structural empirical model. The results indicate that weak broader macroeconomic conditions and the lagged effects of past monetary policy tightening have weighed on housing investment, although this has been somewhat offset by improving housing-specific demand. Looking ahead, housing investment is expected to gradually recover as demand for housing strengthens, economic growth improves and the effects of monetary policy easing feed through. JEL Classification: E22, E43, E52, R21

Keywords: aggregate demand; consumer expectations; euro area; housing investment; housing market dynamics; monetary policy transmission (search for similar items in EconPapers)
Date: 2026-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//press/economic-bulletin ... 4~ff6f689474.en.html (text/html)

Related works:
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:ecb:ecbbox:2026:0001:4

Access Statistics for this article

More articles in Economic Bulletin Boxes from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().