| dc.description.abstract | Our master thesis investigates the intricate relationship between the price of oil and the housing market in Stavanger. Our thesis is motivated by the impact of oil on the region's economy, and its potential impact on the housing market. Stavanger, known as the oil capital of Norway, provides a unique context for this study, making it an ideal location to explore the intricate interplay between the oil market and the housing sector.
This leads us to our research question;
How does the oil price affect the housing market in Stavanger?
To try to answer our research question, we will use quantitative research. Our data consists of 64 observations from the 1st quarter of 2006 to the 4th quarter of 2022. Variables we have included are the House Price Index, Brent Crude Oil Price, House Stock, Policy Rate, Median Income, and Unemployment Rate for Norway and Stavanger. Using a first-difference multiple linear regression analysis, we test for differences in a model including and excluding oil price as a variable and look for differences in a national average for Norway compared to Stavanger.
Our results show a statistically significant impact of oil prices on housing prices in Stavanger and Norway. Still, the oil price has a higher correlation with the house prices in Stavanger, supporting our hypothesis. Our regressions show signs of multicollinearity, and some model variables showed no significant impact on housing prices. This indicates that our model has omitted variables.
To conclude our research, we found evidence of oil impacting the housing prices in Stavanger, but further research needs to be done on the topic as our models show signs of inaccuracies. | |
