Border Effects in House Prices

Martin Micheli; Jan Rouwendal; Jasper Dekkers

doi:10.1111/1540-6229.12255

Border Effects in House Prices

Martin Micheli, Jan Rouwendal, Jasper Dekkers

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Abstract

This article estimates the effect of the Dutch–German border on house prices. We argue that the difference between house prices at the border indicates the willingness to pay to stay in a country compared to living across the border. After a change in the tax rules in 2001, migration from the Netherlands to Germany increased substantially and the gradient of Dutch house price towards the German border steepened. Combining a German and Dutch real estate dataset and using different estimation strategies, we find that asking prices of comparable housing drop by about 16% when one crosses the Dutch–German border.

Original language	English
Pages (from-to)	757–783
Number of pages	27
Journal	Real Estate Economics
Volume	47
Issue number	3
Early online date	29 Jun 2018
DOIs	https://doi.org/10.1111/1540-6229.12255
Publication status	Published - Sept 2019

Funding

The authors thank The Dutch Association of Real Estate Brokers (NVM) for making available the data referring to Dutch transactions and ImmobilienScout24 for making available the data on German real estate adverts.

Funders	Funder number
Dutch Association of Real Estate Brokers
NVM

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10.1111/1540-6229.12255

Border Effects in House PricesFinal published version, 1.56 MBLicence: Article 25fa Dutch Copyright Act

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Border Effects in House Prices

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