Study by Banco De Portugal Warns that Housing Crisis only Resolves with More Offer
4 Articles
4 Articles
High of 1% in demand rises prices 0.69% and incomes 0.37%. Lisbon and Porto are the most affected municipalities. Study points offer as key solution.
"It is particularly important that the effect on housing prices is considerably greater than the effect on rents, suggesting that positive demand shocks are capitalized more intensely in the value of housing as an asset than in the cost of renting," reads the Bank of Portugal study signed by João Amador.
A study published by the Bank of Portugal concludes that demand-side incentives drive up prices and rents, failing to resolve the housing crisis. João Amador's analysis reveals that a 1% increase in demand raises house prices by 0.69% and rents by 0.37%, with the greatest impact in Lisbon and Porto.
A study by Banco de Portugal reveals that the housing crisis is not solved by policies on the demand side, because the increase in demand leads to increases in prices and incomes, with more intense effects on the value of housing than on the cost of renting.
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