<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In both the global and the domestic approach, the real estate market is a multifaceted domain of study, constituting a specific and imperfect system. Researchers have to rely on increasingly advanced analytical tools to capture the structural complexity of real estate markets. Real estate prices are influenced by contradictory behaviors of market participants. This observation prompted the authors to analyze the income and price elasticity of demand for housing by calculating elasticity coefficients in view of changes in housing prices and the Veblen effect. This problem was analyzed based on a review of the literature and the results of an experiment. The results of the current study can be used to confirm the presence of the Veblen effect on the housing market based on the adopted criteria. The coefficients of price and income elasticity of demand for housing were calculated in view of the price dynamics on the real estate market to paint a more complete picture of reality and explain market processes.</p>
</abstract>

In both the global and the domestic approach, the real estate market is a multifaceted domain of study, constituting a specific and imperfect system. Researchers have to rely on increasingly advanced analytical tools to capture the structural complexity of real estate markets. Real estate prices are influenced by contradictory behaviors of market participants. This observation prompted the authors to analyze the income and price elasticity of demand for housing by calculating elasticity coefficients in view of changes in housing prices and the Veblen effect. This problem was analyzed based on a review of the literature and the results of an experiment. The results of the current study can be used to confirm the presence of the Veblen effect on the housing market based on the adopted criteria. The coefficients of price and income elasticity of demand for housing were calculated in view of the price dynamics on the real estate market to paint a more complete picture of reality and explain market processes.

An Analysis of the Income and Price Elasticity of Demand for Housing in View of Price Dynamics on the Residential Property Market

Department of Spatial Analysis and the Real Estate Market, Faculty of Geoengineering

University of Warmia and Mazury in Olsztyn

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution 4.0 International License.

In both the global and the domestic approach, the real estate market is a multifaceted domain of study, constituting a specific and imperfect system....

An Analysis of the Income and Price Elasticity of Demand for Housing in View of Price Dynamics on the Residential Property Market

Publicado en línea: 17 dic 2021

Páginas: 97 - 110

DOI: https://doi.org/10.2478/remav-2021-0032

Palabras clave
income elasticity of demand for housing, price elasticity of demand for housing, Veblen effect, luxury goods

© 2021 Justyna Brzezicka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

An Analysis of the Income and Price Elasticity of Demand for Housing in View of Price Dynamics on the Residential Property Market

Publicado en línea: 17 dic 2021

Páginas: 97 - 110

DOI: https://doi.org/10.2478/remav-2021-0032

Palabras claveincome elasticity of demand for housing, price elasticity of demand for housing, Veblen effect, luxury goods

© 2021 Justyna Brzezicka et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Palabras clave
income elasticity of demand for housing, price elasticity of demand for housing, Veblen effect, luxury goods