Shrinking and Growing Metropolitan Areas - Asymmetric Real Estate Price Reactions? The Case of German Single-Family Houses

Hamburg Contemporary Economic Discussions No. 6, 2007

18 Pages Posted: 27 May 2017

See all articles by Lisa Dust

Lisa Dust

Hamburg Institute of International Economics (HWWI)

Wolfgang Maennig

Universität Hamburg, Faculty of Business, Economics and Social Sciences

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Date Written: October 2007

Abstract

The population of Germany will be one of the first in the western hemisphere to undergo considerable permanent shrinkage. In view of the relatively low elasticities of supply and demand significant negative price reactions might be expected. This work supplements existing studies by estimating real estate prices for single-family homes on the disaggregate level of Germany’s metropolitan areas. It highlights asymmetric price reactions: growth in population numbers has no significant price effects, whereas declining population numbers lead to significant negative price effects.

Keywords: shrinking population, real estates, asymmetric price reactions, regional analysis

JEL Classification: R12, R21, R31

Suggested Citation

Dust, Lisa and Maennig, Wolfgang, Shrinking and Growing Metropolitan Areas - Asymmetric Real Estate Price Reactions? The Case of German Single-Family Houses (October 2007). Hamburg Contemporary Economic Discussions No. 6, 2007, Available at SSRN: https://ssrn.com/abstract=2975370 or http://dx.doi.org/10.2139/ssrn.2975370

Lisa Dust

Hamburg Institute of International Economics (HWWI) ( email )

Heimhuder Strasse 71
Hamburg, DE Hamburg 20148
Germany

Wolfgang Maennig (Contact Author)

Universität Hamburg, Faculty of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

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