Pre- And Post-Financial Crisis Convergence of Metropolitan Housing Markets in Poland

This study investigates the convergence of 18 regional housing markets in Poland using quarterly data from 2000 to 2019. The objective of the paper is twofold. First, we test whether the house prices in Poland are converging over time and identify convergence clubs. Second, we compare the housing market convergence before and after the 2008 financial crisis. The test results suggest that there is little evidence of overall convergence. We identified two major convergence clubs in Poland formed during the study period (2000–2019). The results differed when we considered subperiods (2000–2007 and 2007–2019). In both subperiods, we identified four clubs and some divergent housing markets. The paper fills the gap in knowledge on the convergence of regional housing markets within an emerging economy setting. Little is known about this phenomenon in Eastern European Countries with their unique institutional framework. Additionally, we address differences in house price convergence before, and after the financial crisis, a topic often overlooked in other empirical studies.