Housing prices in Spain: Convergence or decoupling?

Artikel

In this article, we measure changes in the synchronization of housing price cycles across Spanish cities over time. We rely on a regime-switching framework that identifies the housing price cycles of pairs of cities and simultaneously infers the evolving relation between those cycles. These bilateral relationships are then summarized into an aggregate index of city-level housing cycle synchronization. The estimates suggest that Spanish housing prices have followed a convergence pattern that reached a peak in 2009 and decreased slightly afterward. We also identify the cities that have been the main contributors to this convergence process. Moreover, we show that differences in population growth and economic structure are key factors in explaining the evolution of housing price synchronization among Spanish cities.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 14 ; Year: 2023 ; Issue: 2 ; Pages: 165-187

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Price Level; Inflation; Deflation ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: Housing cycles ; Spain ; Synchronization

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ghirelli, Corinna ; Leiva-León, Danilo ; Urtasun, Alberto
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2023

Further information

• DOI: doi:10.1007/s13209-023-00275-1
• Last update: 10.03.2025, 11:43 AM CET