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Cycles of the Housing Market in Hungary from the Economic Crisis until Today

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  • Harnos László

    (PhD student at the Lámfalussy Sándor Department of Economics, University of Sopron, Hungary)

Abstract

The main aim of this paper is to identify the underlying reasons for the cyclical nature of the Hungarian housing market, in particular the business cycles, the construction, and market participants’ expectations. Our research was conducted based on analysis of statistical data and of the housing market indices. As a result, it can be stated that cyclic behaviour of the housing market may be explained primarily with business cycles, but state subsidies and mortgages also affect the variations. Accordingly, the increasing lending and the high amount of subsidies can generate a price bubble. The supply of second-hand dwellings looks more flexible compared with that of new ones. However, the expectations of market operators do not have a demonstrable effect on the housing market.

Suggested Citation

  • Harnos László, 2018. "Cycles of the Housing Market in Hungary from the Economic Crisis until Today," Naše gospodarstvo/Our economy, Sciendo, vol. 64(2), pages 3-14, June.
    • Handle: RePEc:vrs:ngooec:v:64:y:2018:i:2:p:3-14:n:1
    DOI: 10.2478/ngoe-2018-0007
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    References listed on IDEAS

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    1. repec:mnb:ecbook:2006 is not listed on IDEAS
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    More about this item

    Keywords

    property market; housing market cycles; asset price bubble;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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