cover_iza-discussion-papers-2020-november.png

Explaining Regional Disparities in Housing Prices across German Districts

Over the last decade, German housing prices have increased unprecedentedly. Drawing on quality-adjusted housing price data at the district level, we document large and increasing regional disparities: growth rates were higher in 1) the largest seven cities, 2) districts located in the south, and 3) districts with higher initial price levels. Indications of price bubbles are concentrated in the largest cities and in the purchasing market. Prices seem to be driven by the demand side: increasing population density, higher shares of academically educated employees and increasing purchasing power explain our findings, while supply remained relatively constrained in the short term.

Authors Lars Brausewetter Stephan L. Thomsen Johannes Trunzer

Whom to contact

For Researchers

Lars Brausewetter
Lars Brausewetter
Economist

If you have any further questions please contact me.

+49 345 7753-769 Request per E-Mail

For Journalists

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoSupported by the BMWK