Assessing influences upon the housing market in Northern Ireland

Initially, this paper reviews the relationship between the private housing sector and the macroeconomy. Attention focuses upon the divergent behaviour of the housing market at a regional level, using the case of Northern Ireland, relative to that for the national United Kingdom market. Econometric modelling indicates that the primary factor influencing performance within the province is disposable income, with risk arising from political instability a secondary factor. It is argued that lower price elasticities have been instrumental in producing a regional housing market which exhibits counter-cyclical tendencies relative to the national perspective.