The Unassuming Economist

From a paper by José Alberto Fuinhas, Daniela Castilho, Volkan Kaymaz, and Matheus Koengkan:

“In this empirical investigation, the influence of tourism on housing prices was studied for 13 European Union countries from 2005 to 2019 using cs-ARDL and Quantile cs-ARDL econometric approaches. The findings reveal a positive effect running from the tourism sector (represented by tourism revenues and the number of arrivals) to housing price indices, indicating that this industry significantly impacts real estate markets. Moreover, the results show that economic growth, bank credit, and population growth drive house prices. These outcomes have significant implications for policymakers, highlighting the dual nature of tourism’s impact and the need for a careful balance between promoting tourism as an economic strategy and ensuring housing affordability for residents.”