Developments in house prices play an important role in the economic and monetary analyses conducted by central banks. Notably, they are indicative of the strength of monetary policy transmission and of household balance sheet positions. Residential property prices, in conjunction with financing conditions, affect the affordability of housing and this can have knock-on effects for, among other things, construction activity and the rental market. This article reviews developments in the recent house price cycle in the euro area to better understand the possible implications for the economy.
Mar
17
2025
