Abstract:
In light of the exploding housing prices over the past years, this thesis analyses the effect of structural and non-structural factors on the housing prices in the Netherlands between 2005 and 2019. It does so by using a fixed effects model based on a panel dataset in which the Netherlands is separated by its twelve provinces. This thesis separates itself from the existing literature by focusing especially on the non-structural factors such as regulatory pressure, credit conditionality, the interest rate and institutional real estate investments. The results show that credit conditionality and regulatory pressure – to some extent – explain housing prices in the Netherlands. However, the results also show that this effect is relatively small compared to the effect of structural factors such as population and income, and the effect of the lagged housing price.
