Consumption closely tied to house prices in Netherlands – research
Strong correlation attributed to structural features of mortgage market
Research conducted by the Netherlands Bank has found 40% of cumulative consumption growth since 2014 can be attributed to an increase in real house prices.
Unlike several developed countries, the relationship between private consumption and house prices is “relatively strong” in the Netherlands.
“The coefficient found for the Netherlands implies a rise (or fall) of real house prices of 1% leads to a rise (or fall) in real private consumption of 0.18% in the short term,” the research says.
Str
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