Skip to main content
padlock icon - secure page this page is secure

Housing Supply, Demand and Price: Construction Cost, Rental Price and House Price Indices

Buy Article:

$52.00 + tax (Refund Policy)

Housing prices are subject to the impacts of supply as well as demand. While supply is affected by construction costs, demand is determined by the renting/buying considerations of the public. As a result, the construction cost index (CCI) on the supply side and the rental price index (RPI) on the demand side should be closely related to the house price index (HPI). The present study adopts three price indices of the Taiwan housing market, the CCI, the RPI and the HPI, and examines long‐term and short‐term correlations among the three indices. Empirical results indicate that the relationships among three indices are nonlinear. More interestingly, this article finds that the HPI stimulates changes in the CCI and the RPI, although construction costs and rent are viewed as fundamentals in the existing literature. This phenomenon is rather obvious when deviations of the latter two indices from the HPI are greater. The corrective behavior of the HPI is more notable under these circumstances.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Document Type: Research Article

Publication date: December 1, 2012

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more