Reasoning Behind Choices: Rationality and Social Norms in Housing Market Behaviour

Martin Lux, Petr Gibas, Irena Boumová and Martin Hájek

Chapter 11 in Papers presented during the Narodowy Bank Polski Workshop: Recent trends in the real estate market and its analysis - 2015 edition, 2016, pp v2, 69-98 from Narodowy Bank Polski

Abstract: The main objective of this paper is to draw attention to the influence of social norms on housing market behaviour. The research is based on in-depth qualitative study of first-time buyers in the Czech Republic. We found systemic deviations from economically rational behaviour (as defined by mainstream housing economic theory) that stem from influence of dominant housing social norm about ‘right’ housing tenure. We show how influence of social norm constrains financial, pragmatic, utility- or investment-based considerations of Czech home-buyers. Sociology can thus significantly contribute to recent econometric research about sources of housing market instability.

Keywords: housing; market; –; social; norms; –; housing; systems; –; house; prices (search for similar items in EconPapers)
JEL-codes: R21 R31 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpchp:2-11

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