No. 1507 - Inflation expectations and price-setting decisions: insights from the housing market

Temi di discussione (Working papers)
by Elisa Guglielminetti and Michele Loberto
November 2025
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This paper analyzes how real estate agents' inflation expectations affect housing prices. It uses results from an experiment conducted between 2022 and 2023, in which the Italian Housing Market Survey was used to alter agents' inflation expectations, and examines the impact of this change on housing listings advertised on a major online platform.

An increase in inflation expectations leads real estate agents to set higher listing prices for the properties they manage, with an average rise of 1 percent for each additional percentage point of expected inflation. The effect is weaker in less competitive markets, in areas with low demand, and among agents who are more pessimistic about housing market trends and credit access conditions.

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  1. 18 November 2025
    No. 1507 - Inflation expectations and price-setting decisions: insights from the housing market
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