Determinants of Regional Disparities in Housing Prices: A Spatial Analysis of German Regions




spatial econometrics, German regions, housing market, housing costs, rental costs, determinants of housing costs, panel data spatial econometric models, weighting matrix, unemployment rate, migration


Germany is characterised by heterogeneous regional development in various economic spheres, including housing markets. Differences in housing prices persist during decades, causing undesirable inequality, affecting migration and employment patterns. The purpose of this work is to identify regional factors which affect regional housing prices in Germany. The peculiarity of the study is the consideration of the spatial location of regions for analysing the influence of the characteristics of neighbouring regions. Based on data from 397 German regions for 2004-2019, spatial econometric panel data models are built, which consider both selling and rental prices. The following factors that affect demand in the housing market are used as determinants of housing prices: the unemployment rate, the balance of pendulum migration at the place of work and living, the share of employment, wages, the number of employees, gross regional product. The analysis findings revealed that factors that raise income for the population trigger an upsurge in demand and prices for housing. Conversely, opposite effects result in a decline in prices due to a decrease in demand. Moreover, it was verified that neighbouring regions mutually affect housing markets through pendulum migration and the creation of economic clusters with similar living standards and prices. Furthermore, changes in labour market metrics are crucial; unemployment, wages, and the number of workers in nearby regions have a significant influence on real estate prices in the area under examination. The study’s practical importance lies in the possibility of using its outcomes to develop regional and migration policies

Author Biographies

Elena V. Semerikova , HSE University

Cand. Sci. (Econ.), Associate Professorr, HSE University; PhD Student, Humboldt University of Berlin; Scopus Author ID: 56942418500; (11, Pokrovsky Boul., Moscow, 109028, Russian Federation; e-mail:

Anastasia O. Blokhina , HSE University

Bachelor, Faculty of Economic Sciences, HSE University; Master Student in Economics and Management Science, Humboldt University of Berlin; Working Student of Business Excellence Data & Digitalization, Vattenfall GmbH; (11, Pokrovsky Boul., Moscow, 109028, Russian Federation; 1, Spandauer St., Berlin, 10178; 2, Hildegard-Knef-Platz, Berlin, 10829, Germany; e-mail:

Andreas Nastansky , Berlin School of Economics and Law

PhD (60, Alt-Friedrichsfelde, Berlin, 10315, Germany; e-mail:




How to Cite

Semerikova , E. V. ., Blokhina , A. O. ., & Nastansky , A. (2023). Determinants of Regional Disparities in Housing Prices: A Spatial Analysis of German Regions. Economy of Regions, 19(3), 919–933.



Regional Finance