Work

Housing lending, territorial reform, and the financing of central and peripheral regions: Towards a spatial-monetary regime shift?

Year: 2025

Type: article

Abstract: The development of home ownership in the second half of the 20th century has been perceived as an asset and a significant contributor to wealth accumulation. However, rising property prices and increasingly stringent mortgage lending criteria have placed this model under pressure, particularly for younger generations. Recent territorial reforms and expansionary monetary policies, such as the European Central Bank’s quantitative easing (QE) programme, have produced asymmetric effects on regional housing markets. This study applies a spatial econometric model to French departments to investigate how these developments have disproportionately benefited departments located near new regional capitals, thereby exacerbating disparities between these centres and their peripheral territories. By incorporating a spatial perspective, this analysis enriches our understanding of the dynamics between housing finance and regional development while shedding light on the implications of these transformations for financial stability and regional planning policy.

Source: Regional Science Policy & Practice

DOI: 10.1016/j.rspp.2025.100210

Authors: Sébastien Bourdin, Jérôme Picault, Arnaud Simon

Institutions: EM Normandie Business School, Centre National de la Recherche Scientifique, Université Paris Sciences et Lettres, Dauphine Recherches en Management, Université Paris Dauphine-PSL

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Sustainable cities and communities

Open Access status: gold

Estimated APC paid: $1,596