The COVID-19 Pandemic and Housing Markets in Selected European Countries: Lessons Learnt and Policy Implications


Abstract

Objectives: The impact of the COVID-19 pandemic has serious economic and social consequences – global, regional, and local. The overall goal of the paper is to investigate the dynamics of housing markets in selected European countries during the first phase of the COVID-19 pandemic.

Research Design & Methods: We evaluate housing indicators in three European countries: Spain, Italy, and the UK. We explore house prices and other housing market indicators, such as transaction volume or rents. The paper also discusses major policy concerns regarding the effects of COVID-19 on housing welfare and urban transformations.

Findings: We found out that the COVID-19 pandemic had a strong impact on housing transaction volume and housing preferences. We observed a transitionary house price decrease in the UK, but no significant effect was detected in Italy and Spain.

Implications / Recommendations: Due to concerns related to housing affordability and overwhelming housing costs, housing policy should target vulnerable group of tenants and property owners.

Contribution / Value Added: Despite some obvious transmission mechanisms, the effects of the pandemic on the real estate sector have not been investigated comprehensively in the real-estate, housing, or urban literature to date. This paper aims to fill this gap by discussing the consequences of the pandemic on the housing sector in Europe.


Keywords

housing market; housing policy; COVID-19; Europe; Spain; Italy; the UK

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Published : 2021-09-02


Głuszak, M., & Belniak, S. (2021). The COVID-19 Pandemic and Housing Markets in Selected European Countries: Lessons Learnt and Policy Implications. Public Governance / Zarządzanie Publiczne, 53(3), 48-59. https://doi.org/10.15678/ZP.2020.53.3.04

Michał Głuszak  gluszakm@uek.krakow.pl
  Poland
https://orcid.org/0000-0001-7614-229X
Stanisław Belniak 
Cracow University of Economics  Poland
https://orcid.org/0000-0003-4014-5194

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