Explaining Spatial Variation in Homeownership Rates: Results for German Regions

40 Pages Posted: 24 Mar 2011

See all articles by Oliver Lerbs

Oliver Lerbs

University of Münster

Christian Oberst

RWTH Aachen University - E.ON Energy Research Center; German Economic Institute

Date Written: March 2012

Abstract

A wide range of aggregate data is used to examine the spatial variation in homeownership rates among a cross-section of 96 German planning regions. The analysis accounts for potential endogeneity of prices and affordability as well as for spatial dependence in homeownership levels. In addition to familiar demographic and socioeconomic variables, the regional price and affordability of owner-occupied housing, and the regional composition of the housing stock can be identified as important determinants of regional tenure choice patterns. At large, the above factors suffice to explain both the substantial disparities in homeownership rates between eastern and western Germany as well as between rural, urbanized and agglomerated locations. The results of this study offer some interesting implications for housing policy.

Keywords: homeownership, German regions, housing policy

JEL Classification: R210, R310, R380

Suggested Citation

Lerbs, Oliver and Oberst, Christian and Oberst, Christian, Explaining Spatial Variation in Homeownership Rates: Results for German Regions (March 2012). CESifo Working Paper Series No. 3377, Available at SSRN: https://ssrn.com/abstract=1788810 or http://dx.doi.org/10.2139/ssrn.1788810

Oliver Lerbs (Contact Author)

University of Münster ( email )

Schlossplatz 2
Muenster, D-48149
Germany

Christian Oberst

German Economic Institute ( email )

Konrad-Adenauer-Ufer 21
Köln, 50459
Germany

HOME PAGE: http://www.iwkoeln.de/en

RWTH Aachen University - E.ON Energy Research Center ( email )

Mathieustrasse 10
Aachen, 52074
Germany

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