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Housing supply and the interaction of regional population and employment

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  • Wouter Vermeulen
  • J. van Ommeren

Abstract

Housing markets may significantly affect the relationship between regional population and employment, if housing supply is not fully accommodative to demand. We analyse the relationships between housing supply, regional population and employment empirically in a three-equation dynamic model. Annual regional panel data are used for the Netherlands, where a strong tradition of spatial planning exists. We find that net internal migration is strongly determined by housing supply, whereas employment growth has no statistically significant impact. Growth of the housing stock is only moderately affected by population and employment, possibly as a result of restrictive spatial policies. Employment adjusts substantially towards a long-run relationship with the regional population. The analysis further indicates that labour markets drive this long-run adjustment more than local consumer demand. Hence, people follow houses rather than jobs, and jobs follow people in the long run.

Suggested Citation

  • Wouter Vermeulen & J. van Ommeren, 2006. "Housing supply and the interaction of regional population and employment," CPB Discussion Paper 65, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:65
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    Cited by:

    1. Wouter Vermeulen & Jan Rouwendal, 2007. "Housing supply in the Netherlands," CPB Discussion Paper 87.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. N. K. Kurichev & E. K. Kuricheva, 2018. "Regional Differentiation of Buyers’ Activity in the Primary Housing Market of the Moscow Agglomeration," Regional Research of Russia, Springer, vol. 8(4), pages 322-333, October.
    3. Ke Wang & Jianjun Zhang & Wenhua Guo & Zhen Liu & Ze Xu, 2023. "A Perception and Judgement of Contributing Factors for Allocating Urban Residential Land: A Systematic Review and Statistical Analysis," Land, MDPI, vol. 12(1), pages 1-22, January.
    4. Clara H. Mulder, 2006. "Population and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 15(13), pages 401-412.
    5. Wouter Vermeulen & Jan Rouwendal, 2007. "Housing Supply and Land Use Regulation in the Netherlands," Tinbergen Institute Discussion Papers 07-058/3, Tinbergen Institute.
    6. Dani Broitman & Eric Koomen, 2015. "Regional diversity in residential development: a decade of urban and peri-urban housing dynamics in The Netherlands," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 201-217, November.

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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