Housing affordability sets us apart: The effect of rising housing prices on relocation behaviour

Urban Studies ◽  
2020 ◽  
pp. 004209802094348
Author(s):  
Tim Winke
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Housing Prices ◽  
Real Estate Market ◽  
Housing Affordability ◽  
City Centre ◽  
Housing Cost ◽  
Middle Income ◽  
Time Dynamics ◽  
Quasi Experimental

Life course events such as new offspring or job loss affect a household’s demand for housing. At the same time, dynamics in the real estate market constrain where households find affordable housing. In a quasi-experimental design, this study examines the effect of increasing local housing prices on the relocation behaviour of low- and medium-income households. Difference-in-difference panel regressions using propensity score matching show that with rising local rental prices, low-income households are more likely to remain in their current housing and sustain higher levels of housing cost burden. If they move, they relocate further out of the city centre and to neighbourhoods with high unemployment rates. Rising housing markets facilitate socio-spatial segregation as middle-income households remain in economically better-off neighbourhoods. The findings highlight the additional costs of increasing housing prices in terms of the misallocation of housing and the spatial concentration of vulnerable households at the outskirts of cities.

scholarly journals A PROPOSAL FOR AFFORDABLE WAQF HOUSING PROJECTS IN MALAYSIA: PUBLIC PERCEPTION OF HOUSE CHARACTERISTICS

2021 ◽  
Vol 19 (17) ◽  
Author(s):  
Nor Azizan Che Embi ◽  
Salina Kassim ◽  
Roslily Ramlee ◽  
Wan Rohaida Wan Husain
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Structural Equation ◽  
Public Perception ◽  
Housing Prices ◽  
Housing Price ◽  
Income Group ◽  
Housing Affordability ◽  
High Income Group ◽  
Housing Projects

Housing affordability is important to ensure houses are affordable to everyone across all income categories, whether they are in the low-income, middle-income (M40), or high-income group. Building housing projects on waqf land will help increase the supply of affordable houses, especially targeted at the M40 group, while also addressing the shortage of affordable housing for the M40 cohort. This study analyses public perceptions of house characteristics and relate these factors to affordable housing prices. The independent variables are location, infrastructure, facilities, size, design and quality. By applying a quantitative research design, the study aims to understand the relationship between various demanded housing characteristics vis-a-vis the price of the house. A sample of 261 usable responses was analysed using the Structural Equation Modelling (SEM). The results show that house size is not statistically significant in influencing the housing price, while location, infrastructure and design of the house are positively significant factors. These findings are expected to provide important inputs to the relevant authorities on factors that are critical in influencing the prices of housing projects built on waqf land in Malaysia.

scholarly journals Factors Affecting the Housing Affordability of Homebuyers in Perak: Measuring Transport Expenditure

2021 ◽  
pp. 1-11
Author(s):  
Norhayati BAHARUN ◽  
Suraya MASROM ◽  
Afiqah ROSHIDI
Keyword(s):  
Affordable Housing ◽  
Low Cost ◽  
Housing Prices ◽  
Income Group ◽  
Housing Affordability ◽  
Middle Income ◽  
Factors Affecting ◽  
Income Groups ◽  
Low Cost Housing ◽  
The Government

Increasing housing prices in Perak has made it difficult for homebuyers to own affordable housing. Housing affordability ensures that housing provided is affordable for every income group, especially the low and middle-income groups. It has brought the government and housing developers’ attention the issue of housing affordability by supplying public low-cost housing schemes.

scholarly journals HOUSING AND TRANSPORT EXPENDITURE: AN ASSESSMENT OF LOCATION HOUSING AFFORDABILITY

2018 ◽  
Vol 16 ◽  
Author(s):  
M. Azren Hassan ◽  
Hazlina Hamdan ◽  
Jamalunlaili Abdullah ◽  
Yusfida Ayu Abdullah
Keyword(s):  
Urban Area ◽  
Housing Prices ◽  
Income Group ◽  
Housing Affordability ◽  
Influential Factor ◽  
Housing Cost ◽  
Middle Income ◽  
Income Groups ◽  
Middle Income Group ◽  
Low And Middle Income

In every country, the ability to own a house is vital for the housing market. During the past five years, housing prices in the urban area in Malaysia are becoming severely unaffordable. Housing affordability ensures that housing provided is affordable for every income groups, especially the low and middle income group. The measurement of housing affordability uses household income and housing cost but disregards transportation expenditure which is a substantial amount of household expenditure. Location of housing influences transportation expenditure. The research determines the Location Housing Affordability for the low and middle income group in an urban area. This study quantitatively examines Putra Height as one of the mature residential neighbourhoods in Selangor as well as due to the availability of public transit in the area. Housing affordability and transportation affordability create an integrated Location Housing Affordability Index. Data analysis utilizes the measurement of Location Housing Affordability Index. The findings showed that Location Housing Affordability Index recognizes location as influential factor to housing affordability of 179 respondents from low and middle income group. The findings also suggested that the houses in the urban area were seriously unaffordable for the low and middle income groups. The contribution of the research is the emphasis on location as a part of housing affordability measurement.

scholarly journals HOUSING AND TRANSPORT EXPENDITURE: AN ASSESSMENT OF LOCATION HOUSING AFFORDABILITY

2018 ◽  
Vol 16 (6) ◽  
Author(s):  
M. Azren Hassan ◽  
Hazlina Hamdan ◽  
Jamalunlaili Abdullah ◽  
Yusfida Ayu Abdullah
Keyword(s):  
Urban Area ◽  
Housing Prices ◽  
Income Group ◽  
Housing Affordability ◽  
Influential Factor ◽  
Housing Cost ◽  
Middle Income ◽  
Income Groups ◽  
Middle Income Group ◽  
Low And Middle Income

In every country, the ability to own a house is vital for the housing market. During the past five years, housing prices in the urban area in Malaysia are becoming severely unaffordable. Housing affordability ensures that housing provided is affordable for every income groups, especially the low and middle income group. The measurement of housing affordability uses household income and housing cost but disregards transportation expenditure which is a substantial amount of household expenditure. Location of housing influences transportation expenditure. The research determines the Location Housing Affordability for the low and middle income group in an urban area. This study quantitatively examines Putra Height as one of the mature residential neighbourhoods in Selangor as well as due to the availability of public transit in the area. Housing affordability and transportation affordability create an integrated Location Housing Affordability Index. Data analysis utilizes the measurement of Location Housing Affordability Index. The findings showed that Location Housing Affordability Index recognizes location as influential factor to housing affordability of 179 respondents from low and middle income group. The findings also suggested that the houses in the urban area were seriously unaffordable for the low and middle income groups. The contribution of the research is the emphasis on location as a part of housing affordability measurement.

scholarly journals Analysis of the Low-Income Housing in Isfahan Metropolis

2017 ◽  
Vol 11 (3) ◽  
pp. 120
Author(s):  
Sayyed Jamaleddin Samsam Shariat ◽  
Asghar Zarrabi ◽  
Masoud Taghvaei
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Gini Coefficient ◽  
Human Life ◽  
Housing Prices ◽  
Housing Cost ◽  
Human Society ◽  
Analytical Methodology ◽  
Housing Status ◽  
The Gini Coefficient

Despite the importance of housing in human life, the provision of adequate and affordable housing for all people is one of the current problems of the human society because almost half of the world’s population lives in poverty and about 600 to 800 million people reside in substandard housing conditions. The present study, therefore, has been conducted in order to identify the needy groups and, too, housing the low-income groups in Isfahan City. The study is a fundamental-applied research adopting a descriptive-analytical methodology. Variables of the research are the income deciles, housing quantity developments, land and housing prices, the system of housing finance, housing status in the expenditure basket of the low-income households, the Gini coefficient of housing costs, the effective demand for housing in the income deciles considering the area of infrastructure and the access to housing index. The findings reveal that the year 2008 had the highest increase in the housing prices with an increase as 20.4% and the lowest one refers to the year 2010 with an increase as 8.6%. The Gini coefficient of housing cost for urban households shows a downtrend until 2005 and from 2006 onward, the gap has started to increase. Regarding access to the housing index, the results show that in 2003 the low income decile could afford one square meter of housing by saving the total household income for 75 days; whereas in 2011, this degree raised to 206 days. What is noteworthy here is the deep gap between the high-income and low-income deciles in the saving days for one square meter, which differs 10.5 times between the first decile and the tenth decile.

scholarly journals Affordable housing for internally displaced persons: The priorities for investment and development in Ukraine

2021 ◽  
Vol 18 (1) ◽  
pp. 101-113
Author(s):  
Lyudmyla Alekseyenko ◽  
Oksana Tulai ◽  
Yuriy Petrushenko ◽  
Andriy Kuznietsov ◽  
Julia Derkash
Keyword(s):  
Housing Market ◽  
Affordable Housing ◽  
Social Protection ◽  
Housing Prices ◽  
Real Estate Market ◽  
Learning System ◽  
Housing Construction ◽  
Internally Displaced Persons ◽  
Displaced Persons ◽  
Internally Displaced

The institution of home ownership provides for the functioning of affordable housing for low-income people and new groups in need of social protection, including the reintegration of migrants to new places of residence. The aim of the study is to substantiate the priorities of investments into affordable housing for internally displaced persons promoting their adaptation and social reintegration in the context of administrative-territorial decentralization.The study is based on use of empirical, economic and statistical methods, which in the process of correlation, regression and canonical analysis showed that many indicators that characterize the housing market are closely correlated with the scale and development level of administrative units in Ukraine. To characterize the state and investment attractiveness of the residential real estate market, a set of indicators was used in the modeling: population, the number of employed, household income, regional domestic product, volume of commissioned housing, construction investments, regional human development index, total housing stock, housing prices in the regions of Ukraine and Kyiv. The most significant parameter that affects the volume of housing construction is the amount of investments into per capita housing construction. The article also discusses the housing market situation, which differs in regions or some cities due to the significant differentiation of their development, which affects the ability to obtain affordable housing. The implementation of regional development programs should determine investment priorities of social protection, particularly the possibility of buy-out schemes through the mechanism of leasing of social housing by internally displaced persons. Acknowledgment This research was funded by a grant from the Ministry of Education and Science of Ukraine “Reforming the lifelong learning system in Ukraine for the prevention of the labor emigration: a coopetition model of institutional partnership” (No. 0120U102001).

Direct Subsidies and Housing Affordability in Australian Private Rental Markets

10.1068/c0445 ◽  
2005 ◽  
Vol 23 (5) ◽  
pp. 759-783 ◽  
Author(s):  
Gavin A Wood ◽  
Matthew Forbes ◽  
Kenneth Gibb
Keyword(s):  
Low Income ◽  
Policy Design ◽  
Housing Affordability ◽  
Housing Cost ◽  
Microsimulation Model ◽  
Change Of Direction ◽  
Housing Subsidies ◽  
The Social ◽  
Maintenance Systems ◽  
Rental Markets

Many countries have undergone a broad retreat from the use of indirect (supply) subsidies to meet low-income housing-affordability problems, shifting to direct subsidies often linked to means-tested income-maintenance systems. Although the reasons for this change of direction are well documented, the efficacy of direct housing subsidies in terms of tackling affordability remains in question. The authors examine in detail one such system, Australia's Rent Assistance (RA) programme, making use of a microsimulation model of the Australian housing market linked to a model of the social security system. It is found that there is considerable targeting error because many low-income renters are ineligible for direct subsidies. It is also found that RA is relatively ineffective in overcoming affordability problems in high housing cost areas of Australia. Although RA does not of itself contribute much to poverty-trap problems, it may deter unemployed households from moving to areas where job vacancies exist. The authors conclude that future comparative work could usefully analyse the distributional and behavioural impacts of different forms of housing allowances. Moreover, alternative policies could be recalibrated within the microsimulation model in order to examine the first-round impacts of policy design change.

The Housing Triangulation: A Discourse on Quality, Affordability and Lifestyles in India

2011 ◽  
Vol 36 (3) ◽  
pp. 16-26
Author(s):  
Urmi Sengupta
Keyword(s):  
Middle Class ◽  
Affordable Housing ◽  
Low Income ◽  
Transition Process ◽  
Housing Affordability ◽  
Housing Quality ◽  
Housing Sector ◽  
Structural Patterns ◽  
Class Bias ◽  
Housing Standards

Since 1991 with the advent of globalization and economic liberalisation, basic conceptual and discursive changes are taking place in housing sector in India. The new changes suggest how housing affordability, quality and lifestyles reality is shifting for various segments of the population. Such shift not only reflects structural patterns but also stimulates an ongoing transition process. The paper highlights a twin impetus that continue to shape the ongoing transition: expanding middle class and their wealth - a category with distinctive lifestyles, desires and habits and corresponding ‘market defining’ of affordable housing standards - to articulate function of housing as a conceptualization of social reality in modern India. The paper highlights the contradictions and paradoxes, and the manner in which the concept of affordability, quality and lifestyles are embedded in both discourse and practice in India. The housing ‘dream’ currently being packaged and fed through to the middle class population has an upper middle class bias and is set to alienate those at the lower end of the middle-and low-income population. In the context of growing agreement and inevitability of market provision of ‘affordable housing’, the unbridled ‘market-defining’ of housing quality and lifestyles must be checked.

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.

scholarly journals Examining building age, rental housing and price filtering for affordability in Melbourne, Australia

Urban Studies ◽  
2020 ◽  
pp. 004209802092783
Author(s):  
Matthew Palm ◽  
Katrina Eve Raynor ◽  
Georgia Warren-Myers
Keyword(s):  
Affordable Housing ◽  
Low Income ◽  
Government Expenditure ◽  
Rental Housing ◽  
Housing Affordability ◽  
Supply Side ◽  
Lower Income ◽  
Naturally Occurring ◽  
1960S And 1970S ◽  
The 1960S

Governments worldwide have responded to housing affordability challenges with supply-side solutions. Proponents of these approaches often draw on the notion of ‘filtering effects’ to argue that new supply naturally trickles down to lower-income households over time, improving affordability. This study examines the characteristics of Naturally Occurring Affordable Housing in Melbourne, Australia, analysing how dwelling age impacts rental cost. We specify a non-linear relationship between building age and rents through hedonic rent modelling, reflecting a premium for historic properties in inner Melbourne. We also conduct a cluster analysis of rental listings and measure affordability by cluster. Our results problematise the notion of filtering, finding that most contemporary affordable housing was initially built in the 1960s and 1970s as social housing or targeted at low-income households. We argue that filtering in this instance is not natural but is instead a reflection of historic government expenditure and past construction choices, or ‘filter up’.

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