Housing market in Israel: Is there a bubble?
Published version
Peer-reviewed
Repository URI
Repository DOI
Change log
Authors
Arestis, Philip https://orcid.org/0000-0001-8729-4846
Gonzalez-Martinez, AR
Abstract
House prices in Israel have registered unprecedented growth rates in the last few years. At first glance, these hikes could be explained by the evolution of fundamentals such strong population growth and favourable macroeconomic conditions, i.e. low interest rates. However, further investigation is needed in order to explore whether there is a misalignment between house prices and their fundamentals. Firstly, this paper investigates the role of construction costs in the evolution of house prices. Secondly, this contribution decomposes the “price-to-rent” ratio into fundamentals, frictions and bubble episodes for a better understanding of the recent trends of the market.
Description
Keywords
house prices, housing bubble, cointegration, Israel
Journal Title
Panoeconomicus
Conference Name
Journal ISSN
1452-595X
2217-2386
2217-2386
Volume Title
64
Publisher
Savez Ekonomista Vojvodine