Estimating Supply Elasticities for Residential Real Estate in the United Kingdom

Elsevier’s “Reference Module in Earth Systems and Environmental Sciences” features a new chapter of mine on Digital Elevation Models (DEM) and how to utilise them in economic research.

A rare example of consensus between residents, urban planners, property developers, investors, policy makers, and academics in the United Kingdom is the perception of the nation’s housing markets being under considerable stress: Britain’s home-builders are providing too few residential units to meet the increased demand for housing. Population growth, demographic changes, changes in tenancy preferences, and overall lower interest rates led to more and more households chasing after an only slowly expanding stock of properties, driving prices up and affordability down to new record levels—at least in the island’s south and south-east. Put differently, increases in demand for housing do not induce the construction of sufficiently many dwellings. The supply of UK housing appears to be inelastic…

http://www.sciencedirect.com/science/article/pii/B9780124095489096822

 

 

Author: thies

Lecturer (Assistant Professor) for Real Estate Finance, Cambridge