This open access book discusses booming housing markets in cities around the globe, and the resulting challenges for policymakers and central banks. Cities are booming everywhere, leading to a growing demand for urban housing. In many cities this demand is out-pacing supply, which causes house prices to soar and increases the pressure on rental markets. These developments are posing major challenges for policymakers, central banks and other authorities responsible for ensuring financial stability, and economic well-being in general. This volume collects views from high-level policymakers and researchers, providing essential insights into these challenges, their impact on society, the economy and financial stability, and possible policy responses. The respective chapters address issues such as the popularity of cities, the question of a credit-fueled housing bubble, the role of housing supply frictions and potential policy solutions. Given its scope, the book offers a revealing read and valuable guide for everyone involved in practical policymaking for housing markets, mortgage credit and financial stability.
Part I. The rise of major cities: causes and consequences. In the age of cities: the impact of urbanisation on house prices and affordability / Lisette van Doorn, Amanprit Arnold, and Elizabeth Rapoport ; Tackling London's housing crisis / Jamie Ratcliff ; The housing market in major Dutch cities / Rob Nijskens and Melanie Lohuis Part II. Is there a bubble in major cities?. Regional house price differences: drivers and risks / Stijn Claessens and Jochen Schanz ; A tale of two cities: is overvaluation a capital issue? / John Muellbauer ; Towards a global real estate market?: trends and evidence / Laurent Clerc ; Managing house price booms: evolution of IMF surveillance and policy advice / Hites Ahir and Prakash Loungani Part III. Housing supply in urban areas. The macroeconomic implications of housing supply restrictions / Edward L. Glaeser ; Some brief thoughts on housing supply and policy / Albert Saiz ; The smouldering issue / Lauren Ivens ; Housing markets in Scandinavia: supply, demand and regulation / Kjersti Næss Torstensen and Kasper Roszbach ; The relationship between supply constraints and house price dynamics in the Netherlands / Bahar Öztürk, Dorinth van Dijk, Frank van Hoenselaar, and Sander Burgers Part IV. Policy responses. The Dutch housing agenda / Kajsa Ollongren ; Financial stability and housing markets in large cities: what role for macroprudential policy? / Marco Lo Duca and Sergio Nicoletti-Altimare ; Soaring house prices in major cities: how to spot and moderate them / Grégory Claeys, Konstantinos Efstathiou, and Dirk Schoenmaker ; The Korean housing market: its characteristics and policy responses / Ho Soon Shin and Hyun Chang Yi ; House prices and financial stability: an Australian perspective. / Michele Bullock and David Orsmond ; Exploding house prices in urban housing markets: explanations and policy solutions for the Netherlands / Christian Lennartz, Barbara Baarsma, and Nic Vrieselaar..