Analysis of House Price Bubbles in G7 Countries:All Quiet on the Western Front?

27 Pages Posted: 20 Oct 2023

See all articles by Xiaoming Zhang

Xiaoming Zhang

Beijing Jiaotong University

Mengqing Zhu

affiliation not provided to SSRN

Yiming Tian

affiliation not provided to SSRN

Stefano Zedda

Universita di Cagliari

Abstract

In recent years, the high growth of house prices in G7 countries has attracted some attention from all sectors due to the role of the real estate bubble in the global financial crisis of 2008. In this research, we analyzed the house price bubbles and their determinants in G7 countries. Firstly, we detected multiple house price bubbles in G7 countries between 1970 and 2022 and located when the house price bubbles emerged and burst. Second, we investigated the determinants of house price bubbles in each country and in the G7 countries as a whole. The results show that the level of house price bubbles and their determinants is significantly diversified over countries. However, total population, size of private debt, GDP per capita, and urbanization are among the common drivers of the whole G7 countries. Based on these results, we provide some suggestions on the critical points for a stable real estate market development.

Keywords: G7, House price bubbles, GSADF, BSADF, Ordered logit model

Suggested Citation

Zhang, Xiaoming and Zhu, Mengqing and Tian, Yiming and Zedda, Stefano, Analysis of House Price Bubbles in G7 Countries:All Quiet on the Western Front?. Available at SSRN: https://ssrn.com/abstract=4607737 or http://dx.doi.org/10.2139/ssrn.4607737

Xiaoming Zhang

Beijing Jiaotong University ( email )

No.3 of Shangyuan Residence Haidian District
Beijing, 100089
China

Mengqing Zhu

affiliation not provided to SSRN ( email )

No Address Available

Yiming Tian (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

Stefano Zedda

Universita di Cagliari ( email )

Cagliari, 09124
Italy

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
53
Abstract Views
195
Rank
674,383
PlumX Metrics