Paper
Markets and Housing Finance
Examining variation in housing finance provision across countries
35 pages
This paper analyzes the determinants of housing finance in a sample of 61 developed and emerging countries. The paper states that provision of housing finance is a binding constraint that must be addressed before the market can sustainably provide adequate housing. It examines the extent to which markets enable the provision of housing finance. Study results indicate that:
- Countries with stronger legal rights for borrowers and lenders, and deeper credit information systems have better housing finance systems;
- Stable macroeconomic environments contribute to deeper housing finance systems;
- Variation in housing finance across emerging market economies exists on account of the above factors;
- Further development of the capital markets will foster provision of housing finance in many emerging market economies.
Across developed countries, which tend to have low macroeconomic volatility and relatively extensive credit information systems, variation in the strength of legal rights helps explain the extent of housing finance.
About this Publication
Published
