The paper concentrates on the market of new housing and take it as an indicator of overall housing market dynamism. Relying on the data of the 2001 Hungarian census, the main driving forces of housing are identified for all dynamic settlements. The results demonstrate that different components of housing market dynamism are attributed to well-defined geographical locations within the country. The connection between research findings and local housing market price levels is investigated by using Housing Survey data.

After the 2001 census, the Social Statistical Office worked out a comprehensive set of indicators to provide help for municipalities in making their own local housing programmes and policies. All available statistical indicators were included that might be useful for planners and local decision-makers.

The first decade of transformation to a market economy led to an overall dominance of market conditions in the housing sector as well. The market-type mechanisms are determinant: in the background of dynamism, there is an effective demand, which is generated by high incomes either from economic prosperity, tourism or from suburbanusation of well-off families. In this respect, high building subsidies have a dysfunctional role as they generate demand for new housing in settlements where otherwise the demand is lacking. The transformation was accompanied by growing social and regional differences of which the latter was demonstrated by this paper results. It was shown that more and more significant regional differentiation of the housing sector is a consequence of the regional polarisation of economy on the one hand, whereas on the other hand it contributes to further regional inequalities by growing price differences, limited mobility and a larger concentration of substandard housing in disadvantaged areas.

Hungarian Central Statistical Office
Hungary
http://www.ksh.hu
Mrs Judit Székely, tel. + 36 1 345 6000

01/01/2005

Mrs Judit Székely

research

Urban Policy > Housing > Housing policy

Housing market