What Drives House Price Cycles? International Experience and Policy Issues

The role of real estate during the global financial and economic crisis has prompted efforts to better incorporate housing channels into macro models, improve develop macroprudential tools, reform system. This article provides an overview major, recent contributions literature in relation earlier research on what drives prices how they affect activity. Particularly emphasized are studies, both theoretical more strongly evidence-based, that connect markets with credit markets, house price expectations, stability, wider economy. reveals much diversity international regional behavior need data tracking key supply demand influences. Also reviewed studies examining monetary, macroprudential, other policies access housing. survey is designed help readers navigate plethora understand unsettled issues avenues for further research. findings should be interest policy makers concerned stability as well those dealing economy (JEL E32, E44, E63, G01, G21, R31).