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The purpose of this paper is to investigate the factors that affect the responsiveness of new housing supply to price changes in Denmark, France, Germany, The Netherlands, Spain, the UK and the USA. The practical purpose is to identify and consider the similarities and differences in the factors that affect new housing supply amongst the selected countries.

Quantitative estimates of the price elasticity of new housing supply were reviewed and evaluated. Generally they were found to describe and measure but not explain variations in housing supply responses to house price changes. Qualitative research was undertaken based on case study interviews with experienced senior managers of house‐building firms with the objective of obtaining insights into the variables affecting housing supply in each country.

First, quantitative studies provide necessary but insufficient explanation of the factors determining new housing supply. Second, there are a large number of macro‐economic, micro‐economic and institutional factors that explain new housing supply which appear to vary in absolute and relative importance between countries.

The primary research findings are based on a small number of case study interviews. Further work is required to confirm the insights using more interviews and/or large‐scale surveys. The work could also be undertaken at other times in different market conditions.

Factors explaining variations in new housing supply in each country have been shown to vary amongst countries. Policy makers can address these factors in achieving balance between supply and demand, and in understanding what needs to be done to increase new housing supply.

The research demonstrates the value of adopting a pluralist methodology in measuring and explaining the causes of variations in new housing supply.