My goal in researching and writing my dissertation is to learn more about the economic processes that work within the housing market. In Germany, regions differ very drastically in terms of home prices, homeownership rates, vacancy rates and the quality of the housing stock. In my dissertation I attempt to shed light on several of the processes that give rise to or result from this variation. My dissertation is comprised in three main chapters. Although the chapters are distinct works, they are related by their focus on property and housing markets. In particular this thesis tries to understand how differences in vacancy rates, market liquidity and housing prices arise. The overall message that emerges from the body of work is that policy makers should pay close attention to the way that supply and demand interact in markets for property and housing and any regulation can have profound effects which might not be obvious.