The Impact of Macro Factors on Apartment Prices in Polish Counties: A Two-Stage Quantile Spatial Regression Approach

Abstract

Abstract The aim of this study is to identify the economic, demographic, environmental and spatial determinants of residential property prices in Polish counties. Two-stage quantile spatial regression (2SQSR) is the main method of analysis. Additionally, two-stage least squares regression (2SLS) is used. The estimation results indicate that there are several significant determinants of residential property prices with observable quantile effects. In particular, the findings reveal a very interesting U-shaped pattern among quantile regression coefficients for variables describing unemployment rate, the standard of properties and county area. For the spatially lagged dependent variable, a linear pattern is observable. Generally, the findings of this study have notable implications for developing housing policies, both at the national and local levels.