House price revival may drag on Israel’s economy

2022 ◽  
Keyword(s):  
Urban Areas ◽  
Housing Prices ◽  
House Price ◽  
Housing Affordability ◽  
Government Policies ◽  
Infrastructure Development ◽  
Short Term ◽  
Political Issue ◽  
Content Type ◽  
Price Increases

Significance Short-term government policies have consistently failed to contain price increases, much less lower them. As a result, sharply rising housing prices over more than a decade have raised costs for many families. Impacts The growing need to meet climate change-related targets may slow the infrastructure development needed to expand housing supply. Housing affordability could re-emerge as a major political issue. The post-pandemic era may spur changes to the housing market, easing price pressures in urban areas that experienced the sharpest increases.

Asymmetric sensitivities of house prices to housing fundamentals: evidence from UK regions

2019 ◽  
Vol 12 (3) ◽  
pp. 442-455 ◽  
Author(s):  
Huthaifa Alqaralleh
Keyword(s):  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Affordability ◽  
Star Model ◽  
Content Type ◽  
Macroeconomic Variables ◽  
North West ◽  
Country Level ◽  
The North

Purpose This paper aims to examine asymmetries in the house price cycle and to understand the dynamic of housing prices, incorporating macroeconomic variables at regional and country level, namely, housing affordability, the unemployment rate, mortgage rate and inflation rate. Design/methodology/approach To highlight significant differences in the asymmetric patterns of house prices between regions, the STAR model is adopted. Findings The authors highlight significant differences in the asymmetric patterns of house prices between regions, in which some areas showed asymmetric response over the housing cycle; here the LSTAR model outperforms other models. In contrast, some regions (the South West and the North West) showed symmetric properties in the tails of the cycle; therefore, the ESTAR model was adopted in their case. Practical implications Being limited to a few fundamentals, this study opens an avenue for further research to investigate this dynamic using in addition such demand-supply factors as land supply, construction cost and loans made for housing. These findings can also be used to examine whether other models such as ARIMA, exponential smoothing or artificial neural networks can more accurately forecast housing prices. Originality/value The present paper aims to highlight housing affordability as a cause of asymmetric behaviour in house prices. Put differently, the authors seek to understand the dynamics of housing prices with other fundamentals incorporating macroeconomic variables in regions and country level data as a means of achieving a more concise result.

scholarly journals Liquidity, interest rates and house prices in the euro area: a DSGE analysis

2016 ◽  
Vol 9 (1) ◽  
pp. 4-25 ◽  
Author(s):  
Margarita Rubio ◽  
José A. Carrasco-Gallego
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Euro Area ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Dsge Model ◽  
Content Type ◽  
The Core ◽  
Dynamic Stochastic

Purpose This study aims to build a two-country monetary union dynamic stochastic general equilibrium (DSGE) model with housing to assess how different shocks contributed to the increase in housing prices and credit in the European Economic and Monetary Union. One of the countries is calibrated to represent the core group in the euro area, while the other one corresponds to the periphery. Design/methodology/approach In this paper, the authors explore how a liquidity shock (or a decrease in the interest rate) affects house prices and the real economy through the asset price and the collateral channel. Then, they analyze how a house price shock in the periphery and a technology shock in the core countries are transmitted to both economies. Findings The authors find that a combination of an increase in liquidity in the euro area coming from the common monetary policy, together with asymmetric house price and technology shocks, contributed to an increase in house prices in the euro area and a stronger credit growth in the peripheral economies. Originality/value This paper represents the theoretical counterpart to empirical studies that show, through macroeconometric models, the interrelation between liquidity and other shocks with house prices. Using a DSGE model with housing, the authors disentangle the mechanisms behind these empirical findings.

House price index (HPI) and Covid-19 pandemic shocks: evidence from Turkey and Kazakhstan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yeşim Aliefendioğlu ◽  
Harun Tanrivermis ◽  
Monsurat Ayojimi Salami
Keyword(s):  
Real Estate ◽  
Price Index ◽  
Housing Prices ◽  
House Price ◽  
Monthly Basis ◽  
Data Set ◽  
House Price Index ◽  
Content Type ◽  
Asymmetric Pricing ◽  
Long Run

Purpose This paper aims to investigate asymmetric pricing behaviour and impact of coronavirus (Covid-19) pandemic shocks on house price index (HPI) of Turkey and Kazakhstan. Design/methodology/approach Monthly HPIs and consumer price index (CPI) data ranges from 2010M1 to 2020M5 are used. This study uses a nonlinear autoregressive distributed lag model for empirical analysis. Findings The findings of this study reveal that the Covid-19 pandemic exerted both long-run and short-run asymmetric relationship on HPI of Turkey while in Kazakhstan, the long-run impact of Covid-19 pandemic shock is symmetrical long-run positive effect is similar in both HPI markets. Research limitations/implications The main limitations of this study are the study scope and data set due to data constraint. Several other macroeconomic variables may affect housing prices; however, variables used in this study satisfy the focus of this study in the presence of data constraint. HPI and CPI variables were made available on monthly basis for a considerably longer period which guaranteed the ranges of data set used in this study. Practical implications Despite the limitation, this study provides necessary information for authorities and prospective investors in HPI to make a sound investment decision. Originality/value This is the first study that rigorously and simultaneously examines the pricing behaviour of Turkey and Kazakhstan HPIs in relation to the Covid-19 pandemic shocks at the regional level. HPI of Kazakhstan is recognized in the global real estate transparency index but the study is rare. The study contributes to regional studies on housing price by bridging this gap in the real estate literature.

scholarly journals Housing Prices in Unregulated Markets: Study on Verticalised Dwellings in Santiago de Chile

Buildings ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 6 ◽  
Author(s):  
José Francisco Vergara-Perucich ◽  
Carlos Aguirre-Nuñez
Keyword(s):  
Housing Market ◽  
Affordable Housing ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Housing Affordability ◽  
Price Formation ◽  
Land Values ◽  
Santiago De Chile ◽  
Data Transparency

Chile faces a housing affordability crisis, given that most of the population is unable to secure a house. While housing prices between 2008 and 2019 increased by 63.96%, wages only increased by 21.85%. This article presented an analysis of the housing price configuration for the main borough in the country—Santiago. The assessment focused on verticalised housing constructed between 2015 and 2019. The article developed an exploratory study on the price of housing in Santiago to generate a diagnosis to identify the role played by expectations of profitability when configuring price. Based on the information generated, we sought to contribute to the discussion on public policies that advance the development of affordable housing in central boroughs with high urban value, as is the case for Santiago’s borough of Greater Santiago. We hypothesised that profit expectation of real estate developers plays a key role in the housing prices, and an adjustment in the profit ratios might increase the affordability while keeping the housing market above profitable rates. This research addressed the lack of data transparency in the Chilean housing market with archival research, reconstructing costs and earnings from projects based on official registrations of transactions at the borough level. In Chile, the access to investment costs, land values, yields, and house price formation are not publicly available, even though these factors imply that many households are facing severe difficulties in paying for and accessing decent housing.

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.

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.

scholarly journals HOUSING AFFORDABILITY AND INTER-REGIONAL MOVES AMONG OLDER ADULTS

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S276-S276
Author(s):  
Sarah Mawhorter ◽  
Jennifer A Ailshire
Keyword(s):  
Older Adults ◽  
Rural Areas ◽  
Urban Areas ◽  
Low Cost ◽  
Housing Prices ◽  
Well Being ◽  
Housing Affordability ◽  
Housing Crisis ◽  
Mobility Patterns ◽  
Home Equity

Abstract Housing prices have risen in urban areas across the US since 2000, with only a brief interruption after the housing crisis of 2008. At the same time, prosperous urban areas have pulled away from declining urban and rural areas. Older adults are more likely to be affected by both increases and divergence of housing prices: owners may not be able to afford rising property taxes (though they benefit from increasing home equity), and renters are especially vulnerable. Housing affordability constraints may also affect the places where older adults can afford to move. In this paper, we compare the residential mobility patterns of adults aged 50+ living in high-cost, mid-cost, and low-cost areas from 2000-2014, using data from the Health and Retirement Study with county-level US Census and American Community Survey contextual data, as well as the Zillow Home Value Index. We find that both homeowners and renters living in high-cost areas remain in place at higher rates compared with those living in mid-cost and low-cost areas. Among those who move, older adults living in high-cost regions move towards mid-cost and low-cost regions more often than the reverse. The differences are particularly pronounced for renters. The overall outcome is a net movement of older adults away from high-cost areas towards mid-cost and low-cost areas. These shifts have consequences for the well-being of older adults facing budget constraints that may limit the areas where they can afford to live or move, and broader implications for the future of urban areas.

EU telecoms reform will trigger legislative battle

2015 ◽  
Keyword(s):  
Market Power ◽  
Next Generation ◽  
Short Term ◽  
Sector Reform ◽  
Content Type ◽  
Eu Policy ◽  
Price Increases ◽  
Regulatory Frameworks ◽  
National Governments

Subject Telecoms sector reform. Significance Ministers responsible for the telecoms sector have watered down the European Commission's proposals to reform the industry. Their moves coincide with a wave of consolidation among mobile operators at the national and regional levels, raising questions of whether the balance of EU policy towards the sector has swung against consumers or if these changes are necessary for the sector's long-term competitiveness. Impacts Consolidation will facilitate future investment, leaving the mobile telecoms sector better placed to develop next generation infrastructure. However, if recent mergers are any guide, most consumers can expect price increases in the short term. This may raise fears of a strengthening of incumbents' market power. National consolidation should be followed by European consolidation. However, this will only make sense if national governments agree to greater convergence of regulatory frameworks -- which looks unlikely.

scholarly journals A dynamic model for housing price spillovers with an evidence from the US and the UK markets

2018 ◽  
Vol 2 (1) ◽  
pp. 70-81 ◽  
Author(s):  
Alper Ozun ◽  
Hasan Murat Ertugrul ◽  
Yener Coskun
Keyword(s):  
New York ◽  
Real Estate ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Markets ◽  
Content Type ◽  
Real Estate Markets ◽  
Country Level ◽  
The Us

Purpose The purpose of this paper is to introduce an empirical model for house price spillovers between real estate markets. The model is presented by using data from the US-UK and London-New York housing markets over a period of 1975Q1-2016Q1 by employing both static and dynamic methodologies. Design/methodology/approach The research analyzes long-run static and dynamic spillover elasticity coefficients by employing three methods, namely, autoregressive distributed lag, the fully modified ordinary least square and dynamic ordinary least squares estimator under a Kalman filter approach. The empirical method also investigates dynamic correlation between the house prices by employing the dynamic control correlation method. Findings The paper shows how a dynamic spillover pricing analysis can be applied between real estate markets. On the empirical side, the results show that country-level causality in housing prices is running from the USA to UK, whereas city-level causality is running from London to New York. The model outcomes suggest that real estate portfolios involving US and UK assets require a dynamic risk management approach. Research limitations/implications One of the findings is that the dynamic conditional correlation between the US and the UK housing prices is broken during the crisis period. The paper does not discuss the reasons for that break, which requires further empirical tests by applying Markov switching regime shifts. The timing of the causality between the house prices is not empirically tested. It can be examined empirically by applying methods such as wavelets. Practical implications The authors observed a unidirectional causality from London to New York house prices, which is opposite to the aggregate country-level causality direction. This supports London’s specific power in the real estate markets. London has a leading role in the global urban economies residential housing markets and the behavior of its housing prices has a statistically significant causality impact on the house prices of New York City. Social implications The house price co-integration observed in this research at both country and city levels should be interpreted as a continuity of real estate and financial integration in practice. Originality/value The paper is the first research which applies a dynamic spillover analysis to examine the causality between housing prices in real estate markets. It also provides a long-term empirical evidence for a dynamic causal relationship for the global housing markets.

scholarly journals The effects of tourism on housing prices: applying a difference-in-differences methodology to the Portuguese market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
António Manuel Cunha ◽  
Júlio Lobão
Keyword(s):  
Real Estate ◽  
Housing Prices ◽  
Housing Price ◽  
Generalized Least Squares ◽  
Equation Model ◽  
Seemingly Unrelated Regression ◽  
Housing Supply ◽  
Difference In Differences ◽  
Content Type ◽  
Price Increases

Purpose This paper aims to explore the effects of a surge in tourism short-term rentals (STR) on housing prices in municipalities within Portugal’s two largest Metropolitan Statistical Areas. Design/methodology/approach This study applies the difference-in-differences (DiD) methodology by using a feasible generalized least squares (FGLS) estimator in a seemingly unrelated regression (SUR) equation model. Findings The results show that the liberalization of STR had a significant impact on housing prices in municipalities where a higher percentage of housing was transferred to tourism. This transfer led to a leftward shift in the housing supply and a consequent increase in housing prices. These price increases are much higher than those found in previous studies on the same subject. The authors also found that municipalities with more STR had low housing elasticities, which indicates that adjustments to the transfer of real estate from housing to tourism were made by increasing house prices, and not by increasing supply quantities. Practical implications The study suggests that an unforeseen consequence of allowing property owners to transfer the use of real estate from housing to other services (namely, tourism) was extreme housing price increases due to inelastic housing supply. Originality/value This is the first time that the DiD methodology has been applied in real estate markets using FGLS in a SUR equation model and the authors show that it produces more precise estimates than the baseline OLS FE. The authors also find evidence of a supply shock provoked by STR.

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