Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?

In this paper we present the first insights into the as yet unexamined impact of the COVID-19 pandemic on the primary housing market in Poland, with a focus on Warsaw, which is the largest real estate market in the country. We explain the structural features that allowed the market to retur...

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Main Authors: Hanna Augustyniak, Jacek Łaszek, Krzysztof Olszewski, Joanna Waszczuk
Format: Article
Language:English
Published: Institute of Sociology of the Czech Academy of Sciences 2021-01-01
Series:Critical Housing Analysis
Online Access:http://www.housing-critical.com/home-page-1/why-has-the-covid-19-pandemic-had-a-limited-imp
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author Hanna Augustyniak
Jacek Łaszek
Krzysztof Olszewski
Joanna Waszczuk
author_facet Hanna Augustyniak
Jacek Łaszek
Krzysztof Olszewski
Joanna Waszczuk
author_sort Hanna Augustyniak
collection DOAJ
description In this paper we present the first insights into the as yet unexamined impact of the COVID-19 pandemic on the primary housing market in Poland, with a focus on Warsaw, which is the largest real estate market in the country. We explain the structural features that allowed the market to return to pre-shock levels after the pandemic shock. After the 2007–2008 global financial crisis the negative consequences lasted for several years. This time a sharp monetary policy and fiscal intervention was carried out. Moreover, the developer sector has expanded its production capacity. We show empirically that through monopolistic competition developers were able to restrict the excessive demand that was observed before the COVID-19 pandemic broke out. Another important structural change was the increase in the demand for housing, mainly for investment purposes, which was financed predominantly with cash and contributed to the growth of the rental market.
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publisher Institute of Sociology of the Czech Academy of Sciences
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spelling doaj-art-6c59720b061f41ebb67b61494cfb02c32025-08-20T02:54:04ZengInstitute of Sociology of the Czech Academy of SciencesCritical Housing Analysis2336-28392021-01-018211510.13060/23362839.2021.8.2.534Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?Hanna AugustyniakJacek ŁaszekKrzysztof OlszewskiJoanna Waszczuk In this paper we present the first insights into the as yet unexamined impact of the COVID-19 pandemic on the primary housing market in Poland, with a focus on Warsaw, which is the largest real estate market in the country. We explain the structural features that allowed the market to return to pre-shock levels after the pandemic shock. After the 2007–2008 global financial crisis the negative consequences lasted for several years. This time a sharp monetary policy and fiscal intervention was carried out. Moreover, the developer sector has expanded its production capacity. We show empirically that through monopolistic competition developers were able to restrict the excessive demand that was observed before the COVID-19 pandemic broke out. Another important structural change was the increase in the demand for housing, mainly for investment purposes, which was financed predominantly with cash and contributed to the growth of the rental market.http://www.housing-critical.com/home-page-1/why-has-the-covid-19-pandemic-had-a-limited-imp
spellingShingle Hanna Augustyniak
Jacek Łaszek
Krzysztof Olszewski
Joanna Waszczuk
Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
Critical Housing Analysis
title Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
title_full Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
title_fullStr Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
title_full_unstemmed Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
title_short Why Has the COVID-19 Pandemic Had a Limited Impact on the Primary Housing Market in Poland?
title_sort why has the covid 19 pandemic had a limited impact on the primary housing market in poland
url http://www.housing-critical.com/home-page-1/why-has-the-covid-19-pandemic-had-a-limited-imp
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