What question did this study set out to answer?

The aim is to examine how housing affordability pressures influence economic growth in the European Union.

Access to Housing and Economic Growth in the European Union

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Empirical assessment reveals housing affordability pressures affect economic growth in the EU, suggesting implications for policy.

The aim is to examine how housing affordability pressures influence economic growth in the European Union.
Conducted an empirical assessment using data from 21 EU member states from 2000 to 2019.
Estimated a growth regression with country and time fixed effects and several control variables.
Applied Driscoll-Kraay and country-clustered inference methods for robust results.
A 10% relative increase in housing expenditure share is linked to a 0.3 percentage point decrease in annual real GDP growth.
Similar trends observed for real GDP per capita.
Findings suggest rising housing cost burdens may negatively impact growth, though causation is not established.

Bação et al. (2026) studied this question.

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