Spatial dimension, financialization and economic-cycles of housing market in Hungary

Authors: Balázs Forman*, Corvinus University of Budapest
Topics: Urban and Regional Planning, East Europe, Urban Geography
Keywords: housing market, financialization, economic-cycles, quality and qauntity of housing stock
Session Type: Paper
Day: 4/14/2018
Start / End Time: 8:00 AM / 9:40 AM
Room: Muses, Sheraton, 8th Floor
Presentation File: No File Uploaded


Hungarian housing construction was characterized by several longer, shorter waves after 1945. Between 1945 and 1949, post-war reconstruction was characteristic of the most devastating city of Budapest. In the 1950s, housing was concentrated in the former socialist industrial cities - Dunaújváros - and in the mining towns - Oroszlány, Ajka. In the 1960s the construction of large housing estates was started in the outskirts of Budapest, and in county seats and in some new chemical centers. The 1970s brought a boom in the construction of a panel building in big cities. The 1980s were in the wave of quantitative development of housing stock. The shortage of housing has ceased, but the quality of the flats lacked. In the 1990s housing construction stopped. In the housing market, the privatization of state-owned flats has resulted in household savings. The population has put its previous savings into business start-ups. However, the financial crisis that occurred in 1998 led the housing markets to resettle their homes. Between 2000 and 2003, subsidized state-subsidized loans boosted the housing market. After 2002, foreign currency loans inexpensive sources appeared on the Hungarian housing market. The rise in housing construction lasted until 2008. The financial crisis that started then ended the Hungarian bubble economy.
Overall, it can now be stated that there is no equilibrium in the Hungarian housing market. The number of constructions does not allow for the natural renewal of the current stock. Since 2000, the distribution of new housing construction projects the persistence of spatial differences

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