How spatial planning regimes shape housing development markets: a comparison of Flanders and the Netherlands

A competitive market structure is a precondition for the supply of sufficient and affordable housing. Spatial planning regimes have a shaping influence on the market structure of housing developers and therefore on its performance. Although this relation has been recognised before, the different aspects of the spatial planning regime that are relevant – and in what way – remain underexplored. In addition to the acknowledged role of the restrictiveness of a spatial planning regime, we also distinguish the scale of plans and the legal certainty of the spatial planning regime as important factors. By comparing case studies from two contrasting regions, Flanders (Belgium) and the Netherlands, we empirically demonstrate how different spatial planning regimes contribute to market structures that differ greatly, with the Dutch case showing high market concentration and Flanders exhibiting low market concentration. This implies that the spatial planning regime can adjust undesired market structures to prevent the potential negative consequences of market concentration.