Income Inequality and House Prices - the Case of Bulgaria

During the years of the global crisis in Bulgaria a housing bubble were developed and at the same time our country shows the highest income inequality among the EU countries. The purpouse of the research is to take part on the current debate about the link between income inequality and housing prices and to examine this relationship for Bulgaria. The Gini coefficient and Palma ratio were used as a measure of income inequality, and housing prices are presented in nominal and real terms for the period 2006-2019. The results of the regression analysis show a positive relationship between income inequality and housing prices in all cases, and for the period after the crisis the correlation coefficient is positive and extremely high and equal to 0.9.