Drivers of Subregional Housing Markets in Poland

Purpose: The paper investigates how sustainable city development factors impact housing price levels in subregional cities, on basis of 14 thousand real transactions in three Polish cities in the years 2006–2014. Design/Methodology/Approach: The multiple regression analysis with hedonic approach was used. Findings: The three-equation model has proven that economic development factors affect housing price levels in subregional cities while social progress and environmental responsibility do not always explain the change in the housing prices. Additionally the analysis of data allowed to conclude that the smaller the local market is, the more it is responsive to changes in external conditions. Practical implications: The housing market in subregional cities is different to big cities, prices change slower and do not respond to changes in the macro-environment factors as quickly and strongly as in large cities. Moreover, the situation on the local housing markets depends largely on the scale of sustainable development of the city. The study outcomes can be readily used to help more accurately plan housing investments for real estate developers or planning authorities responsible for housing policy. Originality/ value: We indicated what types of sustainable development factors affect the level of housing prices in subregional cities.