Housing wealth and consumption during Covid-19

Economic Memo - January 2023 - No.  1

Authors Andersen, Per; Kuchler, Andreas; Borgensgaard, Pernille Valentin; Meyer, Bjørn Bjørnsson
Subject household balance sheets; Housing finance; Danish Economy; Economic activity and employment
Type Economic Memo
Year 2023
Published 24 January 2023
Abstract icon House prices increased considerably in Denmark during the pandemic, while consumption remained moderate. The marginal propensity to consume out of changes in housing wealth was modest in the years leading up to the pandemic. The largest housing wealth gains during the pandemic occurred among household segments with relatively low marginal propensities to consume.