Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households

The residential real estate market (especially flats) is currently a very topical issue both from an economic as well as social point of view. Flat and house prices determine the economic burden in family finances and the availability of housing for households in regions. The paper aims to identify differences in the relation between flat prices and net disposable income of households among 14 regions in the Czech Republic based on the publicly available data from the period 2000 - 2017. To deal with the panel (longitudinal) data, a linear mixed model was used for the analysis. Twenty statistically significant differences from a total of 91 were identified. The results show that flat prices grow with increasing household disposable income faster in Prague as compared to other regions, except South Moravia. The results of our study can be helpful in the perspective of the regional economic policy or households' decision makings about their living place or the family real estate investment.