This paper describes work in progress on Houdini: a system dynamics model of the Dutch housing market focused on explaining institutional structures leading to high price increases and obstructing new supply and on proposed reforms.
The model is largely based on extensive literature on the woes of the Dutch housing market and was reviewed by a well-established expert panel, consisting of representatives of universities, ministries and national research and policy analysis institutes. The core model structure has its foundation in the diPasquale and Wheaton real estate markets model, an implicit system dynamics model. We report on the Houdini model structure, validation, base run, policy experiments and follow up activities.
PBL working paper 1