The Concrete Economy: The Relationship between the Housing Price and Economic Growth in OECD Countries

作者：Suna Korkmaz · 发表于：Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi · 年份：2026 · DOI：10.25287/ohuiibf.1920677

The housing sector stands out as a key factor in modern economies, playing a decisive role in aggregate demand and economic activity, and this impact manifests itself through both investment and consumption channels. Increases in housing prices increase household wealth, stimulating consumption expenditures and directly supporting economic growth. Similarly, housing market developments such as construction and real estate investments generate positive externalities in production levels, employment, and related sectors, thereby expanding economic activity. In this context, the housing sector is considered a critical area that influences not only individual and institutional investment decisions but also macroeconomic policy and planning processes. In this study, panel data analysis was performed for thirty OECD countries using annual data from 2005–2024, and the dynamic relationship between housing prices and economic growth was examined. The Dumitrescu-Hurlin panel causality test, applied to determine the direction of the effect, revealed a bidirectional causal relationship between housing prices and economic growth. The findings emphasize the importance of the housing market as a leading indicator of macroeconomic performance. Therefore, it is crucial for policymakers to closely monitor housing market developments and develop coordinated and holistic strategies in areas such as interest rates, credit policies, housing supply, and urban planning. Such an approach would not on...