Lenting, Gijs (2024) The Association of Housing Supply Growth and Housing Prices in Paris: A quantitative approach from 2021 - 2023. Pre-master thesis.
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Bachelor-Thesis-Pre-master-Real-Estate-Studies-14-06-2024---G.-Lenting---S5388724---Final-version.pdf Download (1MB) | Preview |
Abstract
This study explores the relationship between housing prices and housing supply growth in Paris from 2021 to 2023 through a hedonic multiple regression model. The results show a significant positive linear relationship between the addition of housing supply and house prices in Paris. Findings show that adding 100 dwellings per square kilometre leads to a 1.91% increase in transaction prices. This highlights the impact of additional housing stock on the neighbourhood attractiveness. Additionally, no significant relationship is found between housing density and housing prices. However, this study is conducted using a limited dataset, which may include multicollinearity, and inaccuracies in data. Despite these limitations, the research illustrates the complexity of housing markets and the need for policymakers to recognize that increasing housing supply may not lower prices. This follows the theory of DiPasquale and Wheaton (1992), which suggests that excessive demand can cause prices to increase even when housing stock is added. Future research should expand the dataset and improve data accuracy to show the impact of specific government policies on housing supply.
| Item Type: | Thesis (Pre-master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Van Duin, I.M. |
| Date Deposited: | 07 Oct 2024 11:28 |
| Last Modified: | 07 Oct 2024 11:28 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4775 |
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