Convergence processes in the European housing markets

The goal of this monograph is to assess the course of convergence processes occurring in European housing markets and to identify the effects of this convergence. The publication is part of research on the housing sector carried out in many countries. However, it presents not only the most frequently conducted studies on price convergence but is also characterised by a broader perspective, taking into account real and institutional convergence of housing markets. An attempt has been also made to indicate the reasons for this phenomenon and its effects. It is addressed to a wide audience: people researching the theory of economic growth, individuals professionally interested in the issues related to the functioning of real estate markets, and especially to students of programmes that have included real estate issues in their curricula.

Introduction 9 Part 1. Development processes of housing markets 15 Chapter 1. The housing market as part of the housing system – theoretical foundations 17 1.1. The housing system 17 1.2. The housing market and its determinants 19 1.3. The social and economic dimension of the housing market 24 Chapter 2. The evolution of European housing systems in the post-war period 43 2.1. Housing policy models 43 2.2. Housing policy instruments 51 2.3. Socio-economic conditions for the development of housing markets from the 1950s to the 1980s 55 2.3.1. Post-war demographic determinants 56 2.3.2. Size and ownership structure of the housing stock 58 2.4. Socio-economic conditions for the development of housing markets from the 1980s to 2017 62 2.4.1. Demographic determinants 62 2.4.2. Size and ownership structure of the housing stock 64 Chapter 3. The evolution of housing markets in selected EU countries 69 3.1. The evolution of housing markets in selected EU countries from the 1950s to the 1980s 69 3.2. The evolution of housing markets in selected EU countries from the 1980s to 2017 75 3.2.1. Distinctiveness of post-socialist states 75 3.2.2. The evolution of housing markets in other countries 90 Part 2. Convergence of housing markets in European Union countries 109 Chapter 4. The essence of economic convergence and methods of its verification 111 4.1. The concept and types of convergence 111 4.1.1. Definitions of convergence and its essence 111 4.1.2. Real convergence in economic theories 113 4.1.3. Types of convergence 115 4.2. Methods of verification of the convergence hypothesis 117 4.2.1. Beta-convergence 117 4.2.2. Sigma-convergence 123 4.2.3. Relative convergence 126 4.2.4. Gamma-convergence 128 Chapter 5. Testing for convergence across housing markets 131 5.1. Convergence processes in housing markets – a literature review 131 5.2. Convergence processes in housing markets – empirical verification 135 5.2.1. The aim and scope of research 135 5.2.2. Research methodology 136 5.2.3. Price convergence of housing markets 139 5.2.3.1. International dimension 139 5.2.3.2. Regional dimension 140 5.2.4. Non-price convergence of housing markets 143 5.2.4.1. International dimension 143 5.2.4.2. Regional dimension 151 5.2.5. Conclusions 167 Part 3. Assessment of housing convergence and its effects 169 Chapter 6. Convergence of European housing markets in the context of economic convergence of the EU Member States 171 6.1. The process of integration of European economies 171 6.2. Economic convergence of the EU Member States 173 6.2.1. The cohesion policy as a response to growing economic inequalities in the EU 173 6.2.2. Economic beta-convergence among the EU Member States 176 6.2.3. Relative convergence 178 6.2.4. Sigma-convergence 180 6.2.5. Conclusions 181 6.3. Convergence of housing markets against the background of economic convergence 182 Chapter 7. An attempt to assess housing convergence and its effects 193 7.1. Directions of changes in housing markets in the context of convergence processes 193 7.1.1. Changes in the housing policy and the current housing situation in the EU Member States 193 7.1.2. Convergence processes in post-socialist states 198 7.1.3. Directions of changes at the regional level 201 7.2. Housing convergence and the problem of social inequalities 202 7.2.1. Directions of changes in the housing situation of households in various income groups in the years 2007 and 2017 202 7.2.2. Trends in housing costs in various income groups 207 7.2.3. Trends in housing overcrowding rate in various income groups 214 7.3. Conclusions 225 Summary 227 Literature 231 Appendix 245 List of tables 249 List of figures 251 List of graphs 253