After a decade-long surge in prices, driven by an extended period of exceptionally low (nominal and real) interest rates, by changing housing preferences due to covid and home-working as well as demographics, real estate prices have stopped rising or even started to fall. In real terms (i.e. adjusted for CPI inflation), they have in fact been falling quite substantially over the past two years. Commercial property markets are affected more severely than housing prices so far. Large property developers and owners are showing serious signs of stress, some prominent cases are in default. Owners and financing banks are about to face valuation losses, which may also have to be realized. What is the further outlook for housing markets? What are future driving factors on the demand and the supply side, both in the short and in the longer run? What are risks and side effects from real estate market developments? How will housing affordability evolve? How to square housing needs with environmental constraints and imperatives from climate protections? What measures might or should policy makers take, in the areas of structural, fiscal and macroprudential policies?
This workshop brings together real estate market experts and researchers, central bankers and supervisors to discuss these themes in a compact, practitioner and policy-oriented format. It is a follow up to the SUERF Workshop “Housing Markets in the 2020s: Valuation, drivers, risks and policies – Sep 21, 2022“.