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The impact of housing and land-use regulations on the formation of speculative house price bubbles: international evidence

Current Project



Project Management

Dr. habil. Konstantin Kholodilin

Project Period

August 1, 2018 - January 31, 2019

Commissioned by

Leibniz Association, Leibniz Research Alliance “Crises in a Globalised World”

This project raises the question of how rental housing market and land-use regulations affect the build-up of the speculative house price bubbles that often lead to financial system instability and deep recessions. The study focuses on the OECD countries. Specifically, the project examines the impact of the rent control, protection of tenants from eviction, housing rationing, and land-use regulations. It tests the hypothesis that over- and under-regulated rental markets cause an excessive debt-financed homeownership formation that increases the probability of speculative price bubbles.

DIW Team