COVID-19 and Dynamics of Residential Property Markets in France: An Exploration

Abstract

In this article, we analyse the effects of the COVID-19 crisis on the French residential property markets. More precisely, we explore whether household demand for residential properties has been impacted by this crisis. Based on data on property transactions recorded between 2016 and 2021, we compare the evolution of prices before and after the crisis. The comparison is done between municipalities within urban areas on one hand, between urban areas on the other. Within urban areas, we show that the less dense municipalities that are farthest from the centre are also those where prices have risen the most. This reflects the desire among households for more spacious properties on the outskirts of urban centres. The results of the analysis of the evolution of prices between urban areas suggest, in line with urban economics theory, that a change in dynamics has occurred in favour of the least productive agglomerations. © 2022, Institut National de la Statistique et des Etudes Economiques. All rights reserved.