7. Impacts on Wealth and Debt of Changes in the Danish Financial Framework Over a Housing Cycle

  1. Colin Jones2,
  2. Michael White3 and
  3. Neil Dunse2
  1. Jens Lunde

Published Online: 24 FEB 2012

DOI: 10.1002/9781118280829.ch7

Challenges of the Housing Economy: An International Perspective

Challenges of the Housing Economy: An International Perspective

How to Cite

Lunde, J. (2012) Impacts on Wealth and Debt of Changes in the Danish Financial Framework Over a Housing Cycle, in Challenges of the Housing Economy: An International Perspective (eds C. Jones, M. White and N. Dunse), Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781118280829.ch7

Editor Information

  1. 2

    Institute for Housing, Urban and Real Estate Research, Heriot-Watt University, UK

  2. 3

    School of Architecture, Design and the Built Environment, Nottingham Trent University, UK

Author Information

  1. Department of Finance, Copenhagen Business School, Denmark

Publication History

  1. Published Online: 24 FEB 2012
  2. Published Print: 4 APR 2012

Book Series:

  1. Real Estate Issues

ISBN Information

Print ISBN: 9780470672334

Online ISBN: 9781118280829

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Keywords:

  • Housing Cycle;
  • Mortgage Lending;
  • Owner Occupation;
  • Demographic Structure Housing Wealth;
  • Housing Debt;
  • Denmark

Summary

The housing market formed an epicentre for the financial and economic crisis in Denmark, as in many other countries. The real house prices in Denmark fell 21% from the peak in 2007Q3 to 2009Q2, although subsequently real house prices flattened out. The chapter begins by examining the Danish house price cycles over the past three decades, and then examines the changing structure of owner occupation since the mid 1980s, focusing on how the generational composition of the sector has adapted over this time. The next section explains the mortgage finance system in Denmark and how it has evolved in a country with the highest level of personal debt in the world. The chapter then considers the financial stability of owner occupiers by reference to the underlying changes to the debt/wealth and financial commitments over the housing market cycle.