Why delay? Understanding the construction lag, aka the build out rate

Michael Ball, Paul Cheshire, Christian Hilber and Xiaolun Yu

ERES from European Real Estate Society (ERES)

Abstract: We explore the determinants of the speed with which residential development sites are built-out after construction starts. Based on a new model of developer behaviour in local markets, we use an instrumental variable and fixed effects empirical strategy to analyse a unique dataset of the near universe of the 1996-2015 residential developments in England. We find that positive local demand shocks accelerate building; less so in areas (i) with more restrictive local planning, (ii) that are more built-up, and (iii) where competition is lower. This suggests the slow site build-out rate in England results from both market and policy failures.

Keywords: Construction lag; Housing demand; Housing Supply; Land-use regulatioon (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2025-100 (text/html)
https://architexturez.net/system/files/eres2025_10 ... 50114181252_4641.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Working Paper: Why delay? Understanding the construction lag, aka the build out rate (2024)
Working Paper: Why delay? Understanding the construction lag, aka the build out rate (2024)
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:arz:wpaper:eres2025_100

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().