This paper examines the relationship between housing investments and economic growth. Through a literature review five different hypotheses are analysed to examine the effects of housing investments on economic growth.
The studied effects include; direct effects, counter-cyclical effects, price effects and productivity effects through reduced mismatch between housing and labour markets, and finally effects on the productivity of workers.
The conclusion is that the direct effects are only short term and the existence of counter-cyclical effects is doubtful. For the price effects and the effects on productivity there are less empirical evidence, but the effects are still considered significant.
Source: Uppsala University
Authors: Andersson, Karin