Urban house prices: A tale of 48 cities

Konstantin Kholodilin () and Dirk Ulbricht

No 2015-13, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: In this paper, the authors construct a unique data set of Internet offer prices for flats in 48 large European cities from 24 countries. The data are collected between January and May 2012 from 33 websites, where the advertisements of flats for sale are placed. Using the resulting sample of 750,000 announcements the authors compute the average city-specific house prices. Based on this information they investigate the determinants of the apartment prices. Four factors are found to be relevant for the flats' price level: income per capita, population density, unemployment rate, and income inequality. The results are robust both to excluding variables and to applying two alternative estimation techniques: OLS and quantile regression. Based on their estimation results the authors are able to identify the cities, where the prices are overvalued. This is a useful indication of a build-up of house price bubbles.

Keywords: internet ads; flats' prices; large European cities; fundamental prices (search for similar items in EconPapers)
JEL-codes: C21 R31 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-eur, nep-mfd and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Journal Article: Urban house prices: A tale of 48 cities (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201513

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