Karadjova, Vera and Delova–Jolevska, Evica and Dicevska, Snezana (2025) AFFORDABILITY OR LUXURY: A CROSS-NATIONAL ECONOMIC INVESTIGATION INTO THE DETERMINANTS OF HOUSING PRICES. In: THEMATIC PROCEEDINGS EMPLOYMENT, EDUCATION AND ENTREPRENEURSHIP. Faculty of Business Economics and Entrepreneurship, Belgrade, Serbia, Belgrade, pp. 204-222. ISBN 978-86-6069-248-3
Full text not available from this repository.Abstract
The housing market in Europe continues to reflect deep economic and social divides, particularly in urban peripheries where housing affordability has become a pressing issue. This study investigates the economic determinants of residential housing prices across European countries, focusing on apartments located outside city centres. Using a cross-sectional regression model, the analysis incorporates a set of macroeconomic and demographic variables including GDP per capita, inflation rate (GDP deflator, annual %), unemployment rate, mortgage interest rates, urban population share, rent prices, mortgage-to income ratio and proportion of people living in their own homes (%). The primary objective is to evaluate how these variables influence housing prices and to assess whether housing in urban outskirts functions as an affordable alternative or increasingly resembles a luxury good. The model reveals significant relationships between housing prices and several indicators, most notably income levels, mortgage interest rates, and rent prices. Inflation and unemployment also exhibit notable, though varying, degrees of influence across different economies. The findings highlight a growing convergence of economic pressures that are making peripheral housing markets less accessible, particularly in lower-income economies. Furthermore, the results suggest that macroeconomic conditions, especially in times of financial volatility, have a direct impact on real estate affordability, challenging the assumption that housing outside city centres is inherently more affordable. This research contributes to the broader discourse on housing inequality and affordability, offering insights for policymakers and urban economists aiming to address the structural factors driving housing market outcomes. It emphasizes the need for coordinated economic and housing policy responses to prevent further marginalization of affordable housing opportunities in European urban environments. Insights gained from this study can inform more effective housing-related monetary and fiscal policies, contribute to greater financial stability, and support the development of responsive credit and mortgage markets, ultimately promoting sustainable housing affordability and broader economic resilience.
KEYWORDS: residential property prices, macroeconomic indicators, economic determinants, cross-country regression analysis, housing affordability
| Item Type: | Book Section |
|---|---|
| Subjects: | Scientific Fields (Frascati) > Social Sciences > Economics and Business |
| Divisions: | Faculty of Tourism and Hospitality |
| Depositing User: | Prof. d-r Vera Karadjova |
| Date Deposited: | 02 Feb 2026 10:08 |
| Last Modified: | 02 Feb 2026 10:08 |
| URI: | https://eprints.uklo.edu.mk/id/eprint/11341 |
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