House Prices Growth Around the world

Ehsan Soltani

From the first quarter of 2010 to the second quarter of 2022, real housing prices in various countries exhibited significant trends. Notably, there was a substantial increase in real housing prices in countries such as New Zealand (97%), Chile (95%), Turkey (91%), Canada (90%), and the United States (63%). Conversely, real housing prices decreased in countries such as Russia (-33%), Greece (-26%), Italy (-24%), Romania (-20%), and Spain (-15%).

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These divergent trends raise questions about the presence of housing bubbles in certain regions and the potential for future price corrections or market stagnation. Factors such as economic policies, demographic shifts, and housing market regulations likely played significant roles in shaping these trends.

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It's important to note that, during this period, the growth rate of house prices in most countries worldwide surpassed the inflation rate. Globally, real house prices increased by 27%, with advanced economies witnessing a 39% rise, emerging market economies experiencing an 18% uptick, and the Eurozone seeing a 16% increase. Approximately 80% of economies recorded growth in real house prices, indicating a decline in the purchasing power of housing due to prevailing real estate bubbles in many markets.

* Real price refers to the value after adjusting for inflation, reflecting buying power relative to a base year.