Roof or real estate? An agent-based model of housing affordability in The Netherlands

Ruben Tarne and Dirk Bezemer

Structural Change and Economic Dynamics, 2025, vol. 72, issue C, 163-178

Abstract: Housing shortages in monetary economies are defined by affordability, which is the balance between income, savings and borrowing to access housing on one hand and purchase prices and rents, providing access, on the other. Yet analysis often confuses (monetary) affordability with (real) supply shortages. In a heterogeneous-agent housing market model calibrated on survey data, we analyse the housing affordability crisis in the Netherlands since around 2015. We find trade-offs between shocks to the housing supply, to interest rates and to banks’ loan-to-value norms by estimating their effects on house prices. Financial and monetary policies are alternatives to supply responses in reducing cyclical house price peaks and average house prices and increasing affordability.

Keywords: Housing affordability; Monetary economy; Agent-based model; The Netherlands (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X24001760
Full text for ScienceDirect subscribers only

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:eee:streco:v:72:y:2025:i:c:p:163-178

DOI: 10.1016/j.strueco.2024.11.014

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().