Housing markets have played a prominent role in macroeconomic developments over recent years. For a great part of the 2000s, buoyant housing markets have contributed to sustained economic activity in most OECD countries. But many markets overheated and the collapse of the US subprime mortgage market has been at the epicentre of a deep financial and economic crisis.

This paper documents housing market developments in 18 OECD countries in an historical perspective; examines the drivers of supply and demand; investigates the interactions between housing markets and the wider economy; assesses the responsibilities of government policies in fuelling or amplifying housing booms; and explores the link between global imbalances and housing booms.