Housing attributes affecting buyers in India

2019 ◽  
Vol 13 (4) ◽  
pp. 533-552 ◽  
Author(s):  
Pavan Namdeo Ghumare ◽  
Krupesh A. Chauhan ◽  
Sanjay Kumar M. Yadav
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Urban Areas ◽  
Supply And Demand ◽  
Housing Affordability ◽  
Town Planning ◽  
Incentive Structure ◽  
Annual Household Income ◽  
Suggested Approach ◽  
Content Type

Purpose The purpose of this paper is to provide affordable housing to low- and middle-income groups. The gravity of India’s housing affordability problem has led us to study and analyse the attributes hindering affordable housing for economically weaker section (EWS) and low-income group (LIG). The attributes such as viable parameters, economic parameters, location and communication, regulatory, source of finance, construction, services and infrastructure parameters affect the supply and demand of affordable housing in Indian urban areas for EWS and LIG with an annual household income below 2 lakhs. Design/methodology/approach The judgement sampling is used amongst housing and planning professionals working in five different sectors, including local authorities, housing developers, housing sectors, town planning and property/affordable housing consultant. The Analytical hierarchy process method of multi-criteria decision-making was used to analyse the data collected. Findings A detailed analysis of the data collected reveals that a viable parameter is the most governing attribute in the supply and demand process of developing affordable housing. Major reforms can be implemented at various levels of housing development in the urban area that can help in reducing the affordability gap for EWS/LIG. The suggested approach will be helpful for developers, urban planners and decision makers while designing an affordable housing project. Originality/value The model being proposed in this paper seeks for a proficient allotment of policies and assets, to some extent, by remedying the current market distortions and different inconsistencies that negatively influence the incentive structure of the affordable housing section in India. This paper offers a plan for a housing procedure that is applicable to all measurements of housing poverty and the groups that sustain it. In this way, the current study is, to a greater extent, a facilitator, and not an immediate solution of affordable housing.

Exploring preferences for affordable housing criteria importance among EWS in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pavan Namdeo Ghumare ◽  
Krupesh A. Chauhan ◽  
Sanjaykumar M. Yadav
Keyword(s):  
Affordable Housing ◽  
Urban Areas ◽  
Supply And Demand ◽  
Housing Affordability ◽  
Town Planning ◽  
Content Type ◽  
Housing Projects ◽  
Questionnaire Surveys ◽  
Planning Experts ◽  
Criteria Importance

Purpose The purpose of this paper is to provide affordable housing to economically weaker section (EWS). The enormity of India’s housing affordability problem has led the authors to study and analyze the criteria delaying an affordable housing for EWS. The issues affecting supply and demand for affordable housing in Indian urban areas for EWS are analyzed. Design/methodology/approach The judgment sampling is used among housing and planning experts working in five different sectors, including local authorities, housing developers, housing sectors, town planning and property/affordable housing consultants. The study has established the problem and acknowledged 30 factors behind it. A total of 349 questionnaires were administered among the housing experts in 4 states of India. Descriptive statistical method was used to determine the significance of criteria. Findings A complete structure of criteria signifying housing affordability, established by the authors, is validated and analyzed in this paper. The questionnaire surveys were conducted with housing and planning experts across the four states of India to determine household perceptions on the criteria contributing to housing affordability and to rank these criteria according to their importance. The study establishes that the experts’ views on this issue differ insignificantly across different states of India, while they differ in certain levels depending on the urban area. Practical implications To build successful societies for the future, the authors wish to draw closer on affordability issues for EWS. The suggestions prominent information to investors, and real estate firms, which could assistance ecological growth of housing projects that are affordable. Originality/value Based on the examination of the ranking and greatness of housing criteria, this paper further suggests possible developments for EWS in India.

An analysis on housing affordability in Malaysian housing markets and the home buyers’ preference

2019 ◽  
Vol 13 (3) ◽  
pp. 375-392 ◽  
Author(s):  
Amy Soon ◽  
Consilz Tan
Keyword(s):  
Housing Policy ◽  
Affordable Housing ◽  
Urban Areas ◽  
Housing Price ◽  
Housing Markets ◽  
Housing Demand ◽  
Housing Affordability ◽  
Monthly Income ◽  
Content Type ◽  
Residential Units

Purpose This paper aims to investigate the housing preference and housing affordability in Malaysian housing markets. There is a lack of research on the gap between supply and demand of houses in this market. Urbanization has increased the demand of houses in urban areas. However, the high demand in residential units increases the housing price which causes the affordability level dropped. Besides, the residences that provided by developers do not meet the expectation of the home buyers. There are three attributes that examined in this research to understand the home buyers’ preference. Design/methodology/approach This paper provides quantitative analysis on the housing affordability and the home buyers’ preference. This paper presents the results on the home buyers’ housing affordability and buying preference on houses. In addition, the study further confirmed the significant relationship between monthly income and type of preferred house, as well as monthly income and range of housing affordability using cross-tabulation analysis. Findings The findings indicated that the housing price in the current market is not affordable by most of the homebuyers and there are certain attributes that important to home buyers which should not be neglected. Research limitations/implications This paper helps to shed light on the planning of Malaysian housing policy especially on the issue of providing affordable housing in urban areas. Practical implications Policymakers shall consider the elements of economics, social acceptance and feasibility of Malaysian housing policies to achieve sustainability in Malaysian housing markets. With the current government’s move to promote housing affordability amongst B40 income groups, local government and housing developers should work together in addressing housing demand in accordance to states and ensure that there is a more targeted housing policy. Social implications With the detailed analysis on the home buyers’ preference, it helps to promote sustainable housing developments in meeting basic housing needs and preference. Originality/value This is the first study to examine relationship between Malaysian housing affordability with monthly income and type of preferred house. In the meantime, the housing affordability is compared with mean housing price and type of perceived affordable house. The paper presented homebuyer’s preference in housing for the consideration of government and housing developers in providing affordable housing.

scholarly journals Locatıon Housıng Affordabılıty as an Indıcator for Qualıty of Lıfe in Malaysıa

2017 ◽  
Vol 2 (6) ◽  
pp. 247
Author(s):  
Mohd Azren Hassan ◽  
Hazlina Hamdan ◽  
Jamalunlaili Abdullah ◽  
Yusfida Ayu Abddullah
Keyword(s):  
Quality Of Life ◽  
Urban Area ◽  
Affordable Housing ◽  
Low Income ◽  
Urban Areas ◽  
Well Being ◽  
Income Group ◽  
Economic Security ◽  
Housing Affordability

To have a quality of life is the ability to own a house. Housing affordability affects the quality of life concerning household well-being and economic security. The research sets to evaluate the location housing affordability for the low-income group base on housing and transportation expenditures in urban areas. 148 respondents have interviewed and by using an integrated Location Housing Affordability, it had indicated that location does influence housing affordability. The findings showed the urban area for the low-income group is seriously unaffordable. “Location" should be part of affordable housing because it affects housing affordability thus concerning the quality of life.

Measuring homeownership affordability in emergent market context: an exploratory analysis for Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yener Coskun
Keyword(s):  
Income Distribution ◽  
Affordable Housing ◽  
Low Income ◽  
Housing Affordability ◽  
Study Analysis ◽  
Content Type ◽  
Case Study Analysis ◽  
Income Groups ◽  
Low Income Groups

Purpose This paper aims to offer an extensive empirical case study analysis by investigating housing affordability in Turkey as a whole, and in Istanbul, Ankara and Izmir over the period of 2006 and 2017 and its sub-periods. Design/methodology/approach This paper develops a theoretically informed model to assess affordability using complementary methodologies in quantitative analysis. This study seeks to help outline the nature of the problem in aggregate level and in the cities; it also seeks to offer lessons about how to address measurement and modelling challenges in emergent market contexts by constructing aggregate-/city-level housing cost-to-income (HCI) ratio, adjusted HCI (AHCI) ratio, housing affordability index (HAI) and effective HAI sensitive to multiple calculation methodologies and alternative data set involving income distribution and poverty tranches. Findings HCI, AHCI, HAI and EHAI models generally suggest the parallel results: housing is not affordable in Turkey and in Istanbul, Ankara and Izmir except for the highest income groups. The evidence implies that besides macroeconomic instabilities, distorted interest rates and short average mortgage maturity, poverty and unequal income/wealth distributions are the main reasons of the Turkish housing affordability crisis specifically heightened in metropolitan areas such as in Istanbul. Research limitations/implications The evidence provides an insight on housing affordability problems in Turkey. However, small sample size and short observation period create a limit for generalisation of the findings. Further analysis would be required to illustrate how housing affordability changes in different cities of Turkey in a longer period. Practical implications By using empirical approaches, this paper helps to understand how serious housing affordability problems of Turkey in aggregate and urban levels. This evidence helps to explain declining ownership ratio in low-income groups and in urban areas. Reliable explanations on existing housing crisis of Turkey also help to develop affordable housing policies. Social implications Declining housing affordability and homeownership ratio may translate as the rising housing inequality and insecurity among Turkish households. Moreover, better affordability values of higher income groups suggest that existing inequality, economic/social segmentation, and hence social tension between high and low income groups, may further increase. In this respect, the authors suggest socially important policies such as reducing income/wealth inequalities and increasing affordable housing supply. Originality/value This study offers a detailed empirical case study analysis that can be used as an exemplar of how to overcome data constraints in other evolving housing market contexts. This study sets out an approach overcoming the challenges of measurement. This study also combines existing methodological approaches with the modified variables to provide a more realistic aggregate-/urban-level housing affordability picture. The authors calculated some parts of housing affordability ratio and index series using discretionary income, minimum wage and effective minimum wage to show the variations of different measurement approaches. Some constructed series are also sensitive to income distribution and poverty thresholds. Collectively, this empirical approach, developed by using emerging market data, provides a contribution to the literature.

scholarly journals Making Unaffordable to Affordable: Looking into Affordable Housing Issues and Its Remedies

2019 ◽  
Vol 15 (1) ◽  
pp. 22-29
Author(s):  
Muhammad Ahsan
Keyword(s):  
Affordable Housing ◽  
Indoor Air ◽  
Low Income ◽  
Urban Areas ◽  
Housing Stock ◽  
Critical Issue ◽  
Housing Affordability ◽  
Housing Development ◽  
Living Standards ◽  
Low Income Families

AbstractAffordable Housing is a critical issue in many developing countries that impacts their potential for sustainability and socio-economic development. Lack of affordable housing, slower growth of housing stock, and aging housing conflates numerous other problems in Pakistan, including overcrowding, poor indoor air quality, prevalence of preventable diseases, and development of slums and katchi abadies, etc. These challenges lessen living standards in many areas. Unaffordable housing forces low income families in urban areas to live in dilapidated areas. An increase in the construction of affordable housing is needed to mitigate housing affordability challenges in Pakistan. Setting aside land quotas for low-income families in housing development schemes is not sufficient because the households still lack the means to construct housing. This paper attempts to identify the causes of unaffordable housing and solutions for its provision.

scholarly journals Affordable Housing Policies in India: Challenges and Reform

2019 ◽  
Vol 8 (3) ◽  
pp. 2706-2712
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Urban Areas ◽  
Low Cost ◽  
Urban Housing ◽  
Housing Affordability ◽  
Housing Sector ◽  
Housing Shortage ◽  
Indian Government ◽  
Great Opportunity

The housing sector is one of the most globally recognized sectors, which estimate the need for affordable housing of 96,150 units/day in urban areas at a global level. Although the task represents an enormous challenge, but it also constitutes a great opportunity for developing countries' economy. After agriculture, the housing sector is the second leading employer in India over a growth of 30 percent in the last decade. The aim of this paper is to study and provide a solution to the existing urban housing problem in India. It attempts to distinguish the problem of the massive urban housing shortage that exists mainly in the Low Income Groups and Economically Backward Sections and provide low-cost housing choices that can be made available with proper policies by Indian Government. The total housing shortage estimated after 2011 census was 18.78 million. The urban population of India has risen from 285 million to 377 million from 2001 to 2011with growth of 32 percent and by 2050; 900 million people will be surviving in urban areas. The rapid growth of urban migration is putting an enormous strain on urban planners to develop an infrastructure in Indian cities. Absence of urban planning can exacerbate existing scenario of housing shortage. Thus, the need arises for a broader and a more encompassing set of policies by which housing affordability can be measured. In this paper, different government schemes are discussed with existing and new reforms of tax policies like REITs, GST, RERA and Benami Transaction Act. A sustainable and accessible model for the affordable housing can be achieved in developing nations through proper implementation of government schemes.

Staged implementation of inclusionary zoning as a mechanism to improve housing affordability in Auckland, New Zealand

2020 ◽  
Vol 13 (4) ◽  
pp. 617-633
Author(s):  
Mario A. Fernandez ◽  
Shane L. Martin
Keyword(s):  
New Zealand ◽  
Housing Market ◽  
Affordable Housing ◽  
Low Income ◽  
Hybrid Approach ◽  
Housing Affordability ◽  
Mixed Integer ◽  
Target Price ◽  
Content Type ◽  
Inclusionary Zoning

Purpose The purpose of this paper is to analyse how the staged implementation of inclusionary zoning (IZ) performs relative to conventional IZ programmes in terms of increasing the number of low- and moderate-income households become homeowners. Design/methodology/approach The paper applies a matching model implemented through a mixed-integer programme model taking Auckland (New Zealand) housing market as a case study. The IZ is simulated by two features: a target price (below which affordable houses are defined) and the income threshold (below which any household gains access to the programme). The staging of IZ consists of first directing affordable houses to low-income households, where those houses that are not sold are cascaded to subsequent population groups with higher incomes. Findings The staged implementation of IZ does not necessarily imply that the number of sales will increase both for affordable and market-rate houses. However, a hybrid approach defined by two target prices results in a greater number of sales relative to a conventional IZ and a baseline affordable market while achieving market efficiency and equity. Research limitations/implications The paper is limited to the marginal impact of new affordable houses entering the market. It does not address further market rounds for houses left empty for tractability purposes. Also, the analysis is circumscribed to current renters and not owners, if owners were included they would outbid renters and distort the intended impact of IZ as an affordable housing policy. Originality/value The paper has relevance for policymakers because it provides evidence about the dimensions of IZ to have a lasting effect on housing affordability. The model is applied to a single housing market but is suitable to be generalized and adapted to a different urban environment.

scholarly journals Locatıon Housıng Affordabılıty: A quality of life ındıcator ın Malaysıa

2018 ◽  
Vol 3 (13) ◽  
pp. 98-106
Author(s):  
M. Azren Hassan ◽  
Hazlina Hamdan ◽  
Jamalunlaili Abdullah ◽  
Yusfida Ayu Abdullah
Keyword(s):  
Quality Of Life ◽  
Affordable Housing ◽  
Low Income ◽  
Urban Areas ◽  
Publishing House ◽  
Well Being ◽  
Income Group ◽  
Economic Security ◽  
Housing Affordability

To have quality of life is the ability to own a house. Housing affordability affects the quality of life concerning household well-being and economic security. The research sets to evaluate the location housing affordability for the low-income group base on housing and transportation expenditures in urban areas. 148 respondents have answered questionnaire and by using an integrated Location Housing Affordability, it had indicated that location does influence housing affordability. The findings showed the urban area for the low-income group is seriously unaffordable. “Location" should be part of affordable housing because it affects housing affordability thus concerning the quality of life.Keywords: Quality of life, Location housing affordability, Housing and transportation expenditure, Low income group.eISSN 2398-4279 © 2018. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ajqol.v3i13.166

Dynamics of affordability and immigration in the Canadian housing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vikkram Singh
Keyword(s):  
Low Income ◽  
Negative Impact ◽  
Policy Formulation ◽  
Housing Affordability ◽  
Immigrant Integration ◽  
Full Time ◽  
Content Type ◽  
Assistance Programs ◽  
Essential Contribution ◽  
The Impact

Purpose This study aims to make two major contributions. First, given the literature gap in housing unaffordability for different immigrant groups in Canada, it makes an essential contribution to the literature. To the best of the knowledge, this study is the first study of its kind to examine housing unaffordability by examining different immigrant groups. Second, differences in unaffordability can help understand the decline in welfare, as it can have financial implications and a negative impact on health outcomes. Third, this study’s findings are valuable for policy formulation to improve immigrant integration and ease the housing unaffordability crisis. Design/methodology/approach This study examines the determinants of housing affordability to investigate differences among various immigrant groups in Canada. A bivariate logit model using public microdata from the Canadian census estimates the determinants of moderate and severe unaffordability. Additionally, the separation of tenants and owners provides insights into the dynamics of unaffordability. The results show significant differences between immigrant groups with higher levels of unaffordability among Asian immigrants. The insights can help devise and implement housing assistance programs to address the challenges arising from the post-COVID-19 pandemic phase. Findings The results indicate that unaffordability declines with increasing age, education and full-time employment. Gender dynamics are evident, with women faring worse than men regarding the likelihood of extreme housing unaffordability. Households face a greater likelihood of unaffordability in more populous provinces and larger census metropolitan areas that struggle with the high cost of living, racial disparities and low income. Immigrants, especially from Asia, Africa and the Middle East, continue to struggle with chronic and severe unaffordability issues. The impact is much more severe for those renting, exemplifying the strain it is taking on the financial health of recent immigrants. Originality/value Given the literature gap in housing unaffordability for different immigrant groups in Canada, it makes an essential contribution to the literature. To the best of the knowledge, this study is the first study of its kind to examine housing unaffordability by examining different immigrant groups.

Sustainable housing financing model to reduce South Africa housing deficit

2017 ◽  
Vol 10 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Bashir Olanrewaju Ganiyu ◽  
Julius Ayodeji Fapohunda ◽  
Rainer Haldenwang
Keyword(s):  
South Africa ◽  
South African ◽  
Affordable Housing ◽  
Low Income ◽  
Low Cost ◽  
South African Government ◽  
The South ◽  
African Government ◽  
Content Type ◽  
Mortgage Payment

Purpose This study aims to identify and establish effective housing financing concepts to be adopted by government in achieving its mandate of providing sustainable affordable housing for the poor to decrease the building of shacks, as well as proposing solutions to the housing deficit in South Africa. A rise in demand and shortage in supply of housing calls for the need to address issues of affordable housing in South Africa, and developing countries in general, to ensure a stable and promising future for poor families. Design/methodology/approach Literature has revealed that the South African government, at all levels, accorded high priority to the provision of low-cost housing. Thus, government has adopted subsidy payment as a method of financing affordable housing to ensure that houses are allocated free to the beneficiaries. This also addresses the historically race-based inequalities of the past, but unfortunately, this has not been fully realised. This study uses a sequential mixed method approach, where private housing developers and general building contractors were the research participants. The qualitative data were analysed using a case-by-case analysis, and quantitative data were analysed using a descriptive statistical technique on SPSS. Findings The results of the qualitative analysis reveal a gross abuse of the housing subsidies system by the beneficiaries of government-funded housing in South Africa. This is evident from illegal sale of the houses below market value. This has led to a continual building of shacks and an increased number of people on the housing waiting list instead of a decrease in the housing deficit. The results from quantitative analysis affirm the use of “Mortgage Payment Subsidies, Mortgage Payment Deductions, Down-Payment Grant and Mortgage Interest Deductions” as viable alternatives to subsidy payment currently in use to finance affordable housing projects by the South African Government. Practical implications At the moment, the focus of the South African National Government is continual provision of free housing to the historically disadvantage citizens, but the housing financing method being used encourages unapproved transfer of ownership in the affordable housing sector. This study thus recommends the use of an all-inclusive housing financing method that requires a monetary contribution from the beneficiaries to enable them take control of the process. Originality/value The relational interface model proposed in this study will reduce pressure on government budgetary provision for housing and guarantee quick return of private developers’ investment in housing. Government must, as a matter of urgency, launch a continuous awareness programme to educate the low-income population on the value and the long-term benefits of the housing.

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