Factors of the Regional Dynamics of the Newly Built Residential Area in Bulgaria for the 2005 – 2021 Period

Abstract

Residential construction, as part of the construction sector, has developed quite dynamically over the last twenty years. This paper examines the dynamics of new housing construction over a seventeen-year period. The panel dataset includes household-related factors of demographic, social, and economic character regarding the demand for newly built housing estate. Different specifications of econometric panel models for the dynamics of new housing construction at district level in Bulgaria are built and estimated. The results show that the dependence of housing area of newly built dwellings by regions in Bulgaria is directly proportional to natural increase, migration, average annual wage, and number of pupils, and inversely proportional to unemployment. Interestingly, the variable “net enrollment rate of children in kindergartens” did not show the expected effect on the growth of newly built housing.