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Vliv prostorové regulace na nabídku nového bydlení v České republice
[Impact of Spatial Regulation on New Housing Supply in Czechia]

Author

Listed:
  • Josef Klement
  • Jan Kozák

Abstract

The aim of the article is to quantify the implicit costs of land use regulations on the prices of new housing (flats and single-family homes) in Prague, Brno, Pilsen and Olomouc during the period 2013-2020. The main method is based on a comparison of new housing prices with construction costs. Furthermore, in the case of single-family homes, a hedonic model is constructed to determine the intrinsic value of land without regulation effects. The research concludes that the costs of regulation are considerable and increasing over time. The results show that the effects are more pronounced on flat markets compared to single-family home markets, the construction of which is subject to simplified permitting processes. The highest level of burden is identified on the flat market in Prague, where regulation can explain up to 44% of the market price. On the contrary, the price of single-family homes in Olomouc approximately corresponds to the sum of construction costs and the value of the land.

Suggested Citation

  • Josef Klement & Jan Kozák, 2022. "Vliv prostorové regulace na nabídku nového bydlení v České republice [Impact of Spatial Regulation on New Housing Supply in Czechia]," Politická ekonomie, Prague University of Economics and Business, vol. 2022(1), pages 3-26.
    • Handle: RePEc:prg:jnlpol:v:2022:y:2022:i:1:id:1340:p:3-26
    DOI: 10.18267/j.polek.1340
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    References listed on IDEAS

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    1. Chang-Tai Hsieh & Enrico Moretti, 2019. "Housing Constraints and Spatial Misallocation," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 1-39, April.
    2. Brueckner, Jan K., 2011. "Lectures on Urban Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016362, April.
    3. Brueckner, Jan K. & Singh, Ruchi, 2020. "Stringency of land-use regulation: Building heights in US cities," Journal of Urban Economics, Elsevier, vol. 116(C).
    4. Vicki Been & Ingrid Gould Ellen & Katherine O’Regan, 2019. "Supply Skepticism: Housing Supply and Affordability," Housing Policy Debate, Taylor & Francis Journals, vol. 29(1), pages 25-40, January.
    5. Polina Stazhkova & Tatyana Kotcofana & Alexander Protasov, 2017. "Concentration Indices In Analysis Of Competitive Environment: Case Of Russian Banking Sector," CBU International Conference Proceedings, ISE Research Institute, vol. 5(0), pages 458-464, September.
    6. Sunding, David L. & Swoboda, Aaron M., 2010. "Hedonic analysis with locally weighted regression: An application to the shadow cost of housing regulation in Southern California," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 550-573, November.
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    More about this item

    Keywords

    Housing supply; land use planning; property prices; hedonic model; regulation;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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