Housing taxation agreement stabilises house prices

Analysis – September 2017 – No. 14

Authors Hviid, Simon Juul; Kramp, Paul Lassenius
Subject Danish Economy; Other economic analyses
Type Analysis
Year 2017
Published 12 September 2017
The effects on house prices of the Housing Tax Agreement are analyzed. From 2021, housing taxes will again dampen fluctuations in house prices and thus economic cycles in general. Towards 2021, the agreement stimulates real estate prices outside the big cities, while lowering prices, e.g. on apartments in Copenhagen. Finally, it is shown that for most home buyers there is no financial incentive to advance home purchases to before 2021 just to ensure a tax reliefe.