These regional differences are driven by both demand and supply-side factors. Growth areas are typically characterised by increasing population, younger residents, a better employment situation and higher household income than the national average. This is also reflected in brisker housing markets and higher house prices in these areas.
2  BIS central bankers’ speeches  For example, in Finland the market conditions in the metropolitan areas are diverging from the conditions prevailing in areas where the population is diminishing. The largest housing loans are concentrated in the biggest cities and growth centres (slide 30). In these centres, house prices are also highest (slides 31). Is there a need for public intervention?