Real state as housing and as a financial investment: A first assesment for Argentina

Autores
Bebczuk, Ricardo Néstor; Garegnani, María Lorena
Año de publicación
2012
Idioma
inglés
Tipo de recurso
documento de trabajo
Estado
versión enviada
Descripción
There exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to buy property. In this light, this paper assesses for the first time whether housing prices in Argentina are mostly driven by housing or by investment motives. To this end, we devised a simple empirical test taking the form of an Equilibrium Correction model of apartment prices in Buenos Aires City on four explanatory variables that separately capture the housing motive (affordability and mortgage loans) and the investment motive (private bank deposits and income). It is found that private bank deposits and income have strong long and short run effects on housing prices behavior. Affordability only shows a short run effect, while mortgage loans turn out to be non-significant. These findings suggest, in line with the popular view on this topic, that real state fulfills a prominent role as a financial investment in Argentina.
Departamento de Economía
Materia
Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/45904
Acceder
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repository_id_str 1329
network_name_str SEDICI (UNLP)
spelling Real state as housing and as a financial investment: A first assesment for ArgentinaBebczuk, Ricardo NéstorGaregnani, María LorenaCiencias EconómicasJEL: C32, G21, R21Argentinaeconomíainversiónhousing demandfinancial investmentequilibrium correction modelThere exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to buy property. In this light, this paper assesses for the first time whether housing prices in Argentina are mostly driven by housing or by investment motives. To this end, we devised a simple empirical test taking the form of an Equilibrium Correction model of apartment prices in Buenos Aires City on four explanatory variables that separately capture the housing motive (affordability and mortgage loans) and the investment motive (private bank deposits and income). It is found that private bank deposits and income have strong long and short run effects on housing prices behavior. Affordability only shows a short run effect, while mortgage loans turn out to be non-significant. These findings suggest, in line with the popular view on this topic, that real state fulfills a prominent role as a financial investment in Argentina.Departamento de Economía2012-11info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/45904enginfo:eu-repo/semantics/altIdentifier/url/http://www.depeco.econo.unlp.edu.ar/doctrab/doc95.pdfinfo:eu-repo/semantics/altIdentifier/issn/1853-3930info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/4.0/Creative Commons Attribution 4.0 International (CC BY 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:02:30Zoai:sedici.unlp.edu.ar:10915/45904Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:02:30.757SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Real state as housing and as a financial investment: A first assesment for Argentina
title Real state as housing and as a financial investment: A first assesment for Argentina
spellingShingle Real state as housing and as a financial investment: A first assesment for Argentina
Bebczuk, Ricardo Néstor
Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
title_short Real state as housing and as a financial investment: A first assesment for Argentina
title_full Real state as housing and as a financial investment: A first assesment for Argentina
title_fullStr Real state as housing and as a financial investment: A first assesment for Argentina
title_full_unstemmed Real state as housing and as a financial investment: A first assesment for Argentina
title_sort Real state as housing and as a financial investment: A first assesment for Argentina
dc.creator.none.fl_str_mv Bebczuk, Ricardo Néstor
Garegnani, María Lorena
author Bebczuk, Ricardo Néstor
author_facet Bebczuk, Ricardo Néstor
Garegnani, María Lorena
author_role author
author2 Garegnani, María Lorena
author2_role author
dc.subject.none.fl_str_mv Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
topic Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
dc.description.none.fl_txt_mv There exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to buy property. In this light, this paper assesses for the first time whether housing prices in Argentina are mostly driven by housing or by investment motives. To this end, we devised a simple empirical test taking the form of an Equilibrium Correction model of apartment prices in Buenos Aires City on four explanatory variables that separately capture the housing motive (affordability and mortgage loans) and the investment motive (private bank deposits and income). It is found that private bank deposits and income have strong long and short run effects on housing prices behavior. Affordability only shows a short run effect, while mortgage loans turn out to be non-significant. These findings suggest, in line with the popular view on this topic, that real state fulfills a prominent role as a financial investment in Argentina.
Departamento de Economía
description There exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to buy property. In this light, this paper assesses for the first time whether housing prices in Argentina are mostly driven by housing or by investment motives. To this end, we devised a simple empirical test taking the form of an Equilibrium Correction model of apartment prices in Buenos Aires City on four explanatory variables that separately capture the housing motive (affordability and mortgage loans) and the investment motive (private bank deposits and income). It is found that private bank deposits and income have strong long and short run effects on housing prices behavior. Affordability only shows a short run effect, while mortgage loans turn out to be non-significant. These findings suggest, in line with the popular view on this topic, that real state fulfills a prominent role as a financial investment in Argentina.
publishDate 2012
dc.date.none.fl_str_mv 2012-11
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
info:eu-repo/semantics/submittedVersion
Documento de trabajo
http://purl.org/coar/resource_type/c_8042
info:ar-repo/semantics/documentoDeTrabajo
format workingPaper
status_str submittedVersion
dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/45904
url http://sedici.unlp.edu.ar/handle/10915/45904
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/http://www.depeco.econo.unlp.edu.ar/doctrab/doc95.pdf
info:eu-repo/semantics/altIdentifier/issn/1853-3930
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by/4.0/
Creative Commons Attribution 4.0 International (CC BY 4.0)
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/4.0/
Creative Commons Attribution 4.0 International (CC BY 4.0)
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:SEDICI (UNLP)
instname:Universidad Nacional de La Plata
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reponame_str SEDICI (UNLP)
collection SEDICI (UNLP)
instname_str Universidad Nacional de La Plata
instacron_str UNLP
institution UNLP
repository.name.fl_str_mv SEDICI (UNLP) - Universidad Nacional de La Plata
repository.mail.fl_str_mv alira@sedici.unlp.edu.ar
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