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This paper analyzes the determinants of the growth of housing prices at the municipal level during the recent housing Spanish boom. In particular, we consider explicity the effect of land use regulation on housing prices. We also consider the effect of inmigartion and employment growth at the municipality level. The results show that neither land availability nor the growth in the number of immigrants has anay statistically significant explanatory power for the growth rate of prices. Therefore, although some popular explanations for the housing price boom is Spain are the effect of a large flow of inmigrants and the scarcity of land, the data do not support these interpretations. The scarce explanatory power of these variables also indicates that a large proportion of the movement in prices in the period of study was due to common factors to all the municipalities and not idiosyncratic or local factor.
