The Impact of Supply Constraints on House Prices in England

Christian Hilber and Wouter Vermeulen

Economic Journal, 2016, vol. 126, issue 591, 358-405

Abstract: We test the theoretical prediction that house prices respond more strongly to changes in local earnings in places with tight supply constraints using a unique panel dataset of 353 Local Planning Authorities in England between 1974 and 2008. Exploiting exogenous variation from a policy reform, vote shares and historical density to identify the endogenous constraints‐measures, we find that: regulatory constraints have a substantive positive impact on the house price‐earnings elasticity; the effect of constraints due to scarcity of developable land is largely confined to highly urbanised areas; and uneven topography has a quantitatively less meaningful impact.

Date: 2016
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https://doi.org/10.1111/ecoj.12213

Related works:
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 (2013)
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)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:econjl:v:126:y:2016:i:591:p:358-405

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