Regional effects of the electricity power grid capacity on housing prices in the Netherlands: a comparative housing prices analysis in the Netherlands.

Abstract

The interaction between electricity services and housing price formations is a topic that has been extensively researched, especially in recent years as electricity consumption and production rose. However, literature has failed to successfully address the influence of the newly arisen problems on the electricity grid on transaction prices. A database of transaction data was created for the Netherlands for 2023 containing building specific and neighbourhood specific characteristics. Using this data, this study has examined the relationship between the electricity grid and housing prices are by estimating linear and multi-level regression models. The results of this paper reveal that areas experiencing higher levels of grid congestion, face decreases in housing prices. More importantly, in urban areas the negative influence of limited electricity grid capacity tends to be more severe when compared to rural areas. This study contributes to a broader understanding of how changes in the electricity supply influence housing prices in the Netherlands. It provides valuable insights for policymakers and stakeholders involved in urban developments and energy management. The conclusions of this study underscore the importance of further research on this relationship.