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Urban house prices: A tale of 48 cities

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  • Kholodilin, Konstantin A.
  • Ulbricht, Dirk

Abstract

In this paper, the authors construct a unique data set of Internet offer prices for flats in 48 large European cities from 24 countries. The data are collected between January and May 2012 from 33 websites, where the advertisements of flats for sale are placed. Using the resulting sample of 750,000 announcements the authors compute the average city-specific house prices. Based on this information they investigate the determinants of the apartment prices. Four factors are found to be relevant for the flats' price level: income per capita, population density, unemployment rate, and income inequality. The results are robust both to excluding variables and to applying two alternative estimation techniques: OLS and quantile regression. Based on their estimation results the authors are able to identify the cities, where the prices are overvalued. This is a useful indication of a build-up of house price bubbles.

Suggested Citation

  • Kholodilin, Konstantin A. & Ulbricht, Dirk, 2015. "Urban house prices: A tale of 48 cities," Economics Discussion Papers 2015-13, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201513
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    Cited by:

    1. Konstantin A. Kholodilin & Claus Michelsen & Dirk Ulbricht, 2018. "Speculative price bubbles in urban housing markets," Empirical Economics, Springer, vol. 55(4), pages 1957-1983, December.
    2. repec:diw:diwwpp:dp1649 is not listed on IDEAS
    3. Kajuth, Florian, 2020. "The German housing market cycle: Answers to FAQs," Discussion Papers 20/2020, Deutsche Bundesbank.
    4. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
    5. repec:diw:diwwpp:dp1666 is not listed on IDEAS
    6. Jose Torres-Pruñonosa & Pablo García-Estévez & Camilo Prado-Román, 2021. "Artificial Neural Network, Quantile and Semi-Log Regression Modelling of Mass Appraisal in Housing," Mathematics, MDPI, vol. 9(7), pages 1-16, April.
    7. Ahfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2017. "The compact city in empirical research: A quantitative literature review," LSE Research Online Documents on Economics 83638, London School of Economics and Political Science, LSE Library.
    8. Konstantin Kholodilin & Irina Koroleva & Darya Kryutchenko, 2022. "Where is the consumer centre? A case of St. Petersburg," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(4), pages 916-938, August.
    9. Jean-Charles Bricongne & Alessandro Turrini & Peter Pontuch, 2019. "Assessing House Prices: Insights from "Houselev", a Dataset of Price Level Estimates," European Economy - Discussion Papers 101, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Konstantin A. Kholodilin & Irina Krylova & Darya Kryutchenko, 2017. "Finding the Consumer Center of St. Petersburg?," HSE Working papers WP BRP 165/EC/2017, National Research University Higher School of Economics.
    11. Stolbov, Mikhail & Shchepeleva, Maria, 2022. "Modeling global real economic activity: Evidence from variable selection across quantiles," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    12. Kajuth, Florian, 2021. "Land leverage and the housing market: Evidence from Germany1," Journal of Housing Economics, Elsevier, vol. 51(C).
    13. Gabriel M. Ahfeldt & Elisabetta Pietrostefani, 2017. "The Compact City in Empirical Research: A Quantitative Literature Review," SERC Discussion Papers 0215, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    internet ads; flats' prices; large European cities; fundamental prices;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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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