Abstract
The dramatic and continual increase in housing prices after 2008 was a major political issue in this period. Large interest cuts suffice to explain the growth in the price-rent ratio. Rising average income explains most of the growth in rents, which, properly calculated, was also high (though less than that of prices) in this period. Contrary to the general belief, population increase did not play much of a role. Owing to endogenous policy response, housing supply is more elastic than an institutional analysis would suggest. That response, which favoured owner-occupancy over rental, was driven mainly by the salience of the headline housing price index.
| Original language | English |
|---|---|
| Title of host publication | The Israeli Economy, 1995-2017 |
| Subtitle of host publication | Light and Shadow in a Market Economy |
| Publisher | Cambridge University Press |
| Pages | 555-586 |
| Number of pages | 32 |
| ISBN (Electronic) | 9781108907620 |
| ISBN (Print) | 9781108830461 |
| DOIs | |
| State | Published - 1 Jan 2021 |
Bibliographical note
Publisher Copyright:© Cambridge University Press 2021.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 11 Sustainable Cities and Communities
Keywords
- Housing
- bubble
- investment
- monocentric model
- mortgage rates
- price indices
- rent
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