The role of development size in Dutch housing development – a quantitative exploration of the housing development culture and its effects on market concentration in the Dutch context

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2024-08-01

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en

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This thesis explores the impact of the Dutch housing development planning culture on market concentration with the focus on the size of developments. Dutch municipalities often experience high market concentration in new-build housing, possibly due to a planning culture that favours large-scale developments, which might enable firms to achieve economies of scale, reduce competition, and limit housing choices. The hypothesis that development size does not affect market concentration have been tested using a falsification strategy and fixed linear regression analysis on selected secondary data. Contrary to the expectations, the results show no statistically significant relationship between development size and market concentration what suggests that this aspect of Dutch planning culture is not a key driver of market concentration. However, the analysis reveals that larger municipalities, in terms of both area and population, tend to have lower market concentration. The findings indicate that factors other than development size are likely more influential in driving market concentration, challenging previous assumptions about the role of planning culture. This thesis contributes to the Dutch housing market discourse by providing quantitative evidence that development size does not impact market concentration, in contrast to previous qualitative studies.

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Faculteit der Managementwetenschappen