Possibilities for creating a regional price index of living costs by using supply data

Abstract

"Housing costs play a decisive role in the context of regional price indices. German households spend nearly 20 % of their net-income for housing (excluding utilities). However, the regional distinctions, e.g., between Munich and peripheral regions in Eastern parts of Germany, are significant. In addition, in Germany more than 50 % of all loans are secured with property. Thus, real estate prices and their development become an essential component of financial stability and the entire economic situation. Against this background, this study gives an overview about today's possibilities of price monitoring in the segment of housing costs. For this purpose, the paper first discusses the demands on price monitoring - with respect to housing and real estate price indices alike - focusing in particular on public stakeholders. Subsequently, existing data as well as the rudiments of index calculation referring to these demands are analyzed. Towards the end, the indexation of 'offer prices' is tested and the results are critically discussed. In this subparagraph, the discussion centers around in what respect these data are suitable for indexation (in spite of their variations) and to what extent a correction of the data is possible. The result is a nationwide regional real estate price index based on adjusted as well as unadjusted data." (Authors' abstract, IAB-Doku) ((en))

Cite article

Faller, B., Helbach, C., Vater, A. & Braun, R. (2010): Möglichkeiten zur Bildung eines Regionalindex Wohnkosten unter Verwendung von Angebotsdaten. In: J. Möller, E. Hohmann & D. Huschka (Hrsg.) (2010): Der weiße Fleck - zur Konzeption und Machbarkeit regionaler Preisindizes (IAB-Bibliothek, 324), p. 125-165.