Market Structure and Urbanization: The Impact of Competition Among Developers on Housing Production in France

Maxime Charreire (), Marie‐noëlle Lefebvre and Marion Girard ()
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Maxime Charreire: ESPI2R - Laboratoire ESPI2R Research in Real Estate [Paris] - ESPI - Ecole Supérieure des Professions Immobilières
Marie‐noëlle Lefebvre: CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas, ESPI2R - Laboratoire ESPI Réflexions et Recherches (1997-2021) - ESPI - Ecole Supérieure des Professions Immobilières
Marion Girard: Laboratoire ESPI2R Research in Real Estate [Lille]

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Abstract: This paper analyzes the effects of competition between major construction and development firms and other developers on housing production in France, offering both theoretical and empirical contributions. Theoretically, a static monocentric city model shows that major firms, due to lower marginal costs, prioritize high-demand central areas, whereas other developers focus their production activities in peripheral zones. Empirically, an analysis of building permit data (2013–2022) reveals that major firms concentrate their projects in metropolitan areas and in the core of urban regions, with larger-scale developments. This study sheds light on the role of market competition structure in shaping urbanization and the geographic distribution of housing production in France.

Keywords: Competition; Monocentric city model; Real Estate Developers; Urbanization (search for similar items in EconPapers)
Date: 2025-07-02
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Published in 31st Annual European Real Estate Society Conference, European Real Estate Society, Jul 2025, Athènes, Greece

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05456589

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