scholarly journals International Real Estate Review

2020 ◽  
Vol 23 (3) ◽  
pp. 337-365
Author(s):  
Chien-Wen Peng ◽  
◽  
Jerry T. Yang ◽  
Tyler Yang ◽  
◽  
...  
Keyword(s):  
Affordable Housing ◽  
Net Present Value ◽  
House Prices ◽  
Housing Prices ◽  
Rental Housing ◽  
Housing Tenure ◽  
Price Ratio ◽  
Model Framework ◽  
Housing Tenure Choice ◽  
The Government

This paper develops a theoretical model for equilibrium rent-to-price ratios from the competition between households and investors in the housing market. Households make their housing tenure choice in terms of rent vs. buy such as minimizing the cost of occupying a housing unit. On the other hand, investors choose between investing in rental housing vs. other investment opportunities in order to maximize their net present value. In the face of limited housing inventory, households and investors bid against one another which determines the allocation of the housing units among households (owner occupied properties) and investors (rental properties). We derive the sensitivity of the equilibrium rent-to-price ratio with respect to various market parameters, and subsequently analyze their potential impacts on the homeownership rate in the community. We show that some government mortgage programs subsidize homeownership to increase the affordability of owning a house, but may also provide even more incentive to the housing investors. Unless the government can effectively control the eligibility of borrowers, such affordable mortgage programs could work against their objectives and lead to higher housing prices and lower homeownership rates. Our model framework can be used to analyze the potential impacts of some of the new affordable housing policies on house prices or homeownership rates before adopting them.

scholarly journals SYSTEMATIC ANALYSIS OF AFFORDABLE HOUSING DEVELOPMENT AND PRICING STRUCTURE IN SHENZHEN, CHINA

2015 ◽  
Vol 19 (1) ◽  
pp. 58-65 ◽  
Author(s):  
Chun Pong SING ◽  
Peter E. D. LOVE ◽  
Wing Hong FUNG ◽  
Yun Zi HE
Keyword(s):  
Housing Policy ◽  
Affordable Housing ◽  
House Prices ◽  
Housing Prices ◽  
Housing Development ◽  
Chinese Government ◽  
Systematic Analysis ◽  
Middle Income ◽  
The Government ◽  
Low And Middle Income

As a result of urban housing reform in China, it has become increasingly difficult for low and middle income families to purchase a house. In response to the growing demand for affordable housing, the Chinese Government has developed a specific housing policy to enable families to purchase properties from the private sector. The pricing mechanism of such housing is completely based on the family affordability and the profit margin of developers. To ensure the provision of housing for low and middle-income families, the future trend of affordable housing prices has become a concern for developers, consumers and may adversely influence the implementation of the current national housing policy. In this paper a systematic analysis of affordable housing development and its pricing structure is undertaken for the city of Shenzhen. As information pertaining to the factors influencing house prices is imperfect, a Grey model, which requires a limited amount of data to reflect unknown behavior, is constructed to provide a forecast for affordable house pricing. The analysis indicates that the government should adjust their current affordable housing policy to accommodate the forecasted upward trend in house prices.

Young adults and homeownership in Jakarta, Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Gitta Puspitasari ◽  
Riza Sunindijo ◽  
Michael Adabre
Keyword(s):  
Young Adults ◽  
Affordable Housing ◽  
Descriptive Analysis ◽  
Housing Prices ◽  
Policy Formulation ◽  
Capital City ◽  
Content Type ◽  
The Social ◽  
The Government ◽  
Lending Institutions

Purpose Homeownership, especially for young adults, is a significant challenge in nearly every country and Indonesia, the fourth most populous country in the world, is not exempted. Its capital city, Jakarta, has the lowest homeownership rate when compared with other cities and if this challenge remains unresolved, it could lead to more social and economic issues in the country. Hence, this study aims to investigate the homeownership of young adults in Jakarta, focussing on young adults’ opinions, perceptions and experiences regarding homeownership opportunities. Design/methodology/approach A questionnaire survey was conducted to collect data from young adults in the study area. The collected data were analysed using the statistical package for the social sciences 24.0 software. Descriptive analysis, Cronbach’s alpha test, Pearson’s correlation test and mean score ranking were adopted to analyse the collected data. Findings The result shows that homeownership is driven by factors that are more functional and realistic (in terms of a place to live, marriage and parenthood) rather than those related to pride or social status representation (as a personal or career accomplishment). Unaffordability and insufficient income were ranked as crucial barriers to homeownership. Increasing the supply of affordable housing, controlling housing prices through government’s intervention and reducing mortgage interests are potential solutions to address this issue. Practical implications The result of this research would be useful to young adults who are the participants of this study, property developers, lending institutions and the government concerning homeownership policy formulation, loan provision, affordable housing supply, etc. Originality/value Specific studies that focussed on the young adults’ homeownership in Jakarta, Indonesia is limited, therefore, this research provides an insight into the issue of young adults’ homeownership in the country. Also, the findings could be applicable in other developing countries that have similar characteristics to Indonesia.

scholarly journals HOUSING POLICIES IN SINGAPORE: EVALUATION OF RECENT PROPOSALS AND RECOMMENDATIONS FOR REFORM

2014 ◽  
Vol 59 (03) ◽  
pp. 1450025 ◽  
Author(s):  
SOCK-YONG PHANG ◽  
DAVID LEE ◽  
ALAN CHEONG ◽  
KOK-FAI PHOON ◽  
KAROL WEE
Keyword(s):  
Housing Market ◽  
House Prices ◽  
Supply And Demand ◽  
Housing Prices ◽  
Housing Affordability ◽  
Property Taxes ◽  
Housing Supply ◽  
Housing Policies ◽  
Global Liquidity ◽  
The Government

The Singapore housing market is unusual in its high homeownership rate, the dominance of HDB housing, and the extensive intervention of the government in regulating housing supply and demand in both the HDB and private housing sectors. Recent rapid population increases in a low interest rate and high global liquidity environment has resulted in accelerated house prices increases in Singapore. Earlier this year, the government launched "Our Singapore Conversation" of which discussion on housing policies constitutes one major component. This "conversation" comes in the wake of several consecutive rounds of measures to stabilize housing prices using various instruments. This paper evaluates the main policy changes proposed and makes recommendations for housing market reforms: (i) the government need to clarify goals of housing policies and make available more detailed data on the foreign component of our population for better analysis of housing markets; (ii) the housing supply regime should target an overall effective vacancy rate that encompasses both the Housing and Development Board (HDB) and private sector; (iii) policy makers need to monitor carefully excess demand indicators for housing in addition to housing affordability indicators over the entire spectrum of incomes and household types; (iv) housing REITs should be established to provide an alternative investment option as well as to develop an efficient and affordable rental sector; and (v) in addition to macroprudential measures, owner-occupancy requirements and fiscal measures such as stamp duties and property taxes could be further utilized to reduce the foreign demand for Singapore housing and real estate.

Research on Establishment and Analysis of the System of Affordable House Supply System

2012 ◽  
Vol 446-449 ◽  
pp. 3852-3856
Author(s):  
Hong Yong Liu ◽  
Jun Wei Zheng
Keyword(s):  
Affordable Housing ◽  
Central Government ◽  
Rental Housing ◽  
Listed Companies ◽  
The State ◽  
Tax Reduction ◽  
The Game Theory ◽  
Economically Affordable Housing ◽  
The Government ◽  
Privately Owned

The plan of “12•5” reflects the importance of the people’s livelihood, and the congress put forward to some measures about housing safeguard. When the central government vigorously promotes the policy of housing, it analyzes the group game among the large listed companies, the local government and the central government to obtain that the large listed companies can gain the benefit from the field of economically affordable housing and capped-price housing, analyzing the cooperative game among the state-owned enterprises, advising the government can cooperative with the state-owned enterprise to build the rental housing and mutually surrender part of the profits based on the credible commitment and the precondition of a series of preferential policies about tax reduction, analyzing the expectation of the consumer about buying or renting and the expectation of the company about the building of rental housing or the general commercial house to obtain that the consumer like to rent a house firstly and adjust their psychology, entering into the model of renting firstly and buying secondly. Establishing the system of housing safeguard with the above-mentioned analysis based on the game theory, the system of housing safeguard is improved with the adding of the large state-owned, privately-owned listed companies and the state-owned enterprises to provide a reference for the construction of housing safeguard.

scholarly journals International Real Estate Review

2000 ◽  
Vol 3 (1) ◽  
pp. 11-33
Author(s):  
Li-Min Hsueh ◽  
Keyword(s):  
Sample Selection ◽  
Housing Prices ◽  
House Price ◽  
Household Survey ◽  
Housing Tenure ◽  
Tenure Choice ◽  
Savings Behavior ◽  
Price Increases ◽  
Housing Tenure Choice ◽  
Household Survey Data

The purpose of this research is to empirically test whether house price increases are an important factor in a household’s savings decisions and whether housing tenure choice and savings behavior are inter-correlated in Taiwan. Heckman's two-stage procedure for correcting sample selection bias is used in the estimation of savings function for homeowners and renters. Household survey data from 1985, 1989 and 1993 are used to compare households' saving behavior at different times. The empirical results show that in some cases the coefficients of the two different definitions of house price increases have opposite signs. These differences may be the result of different behavior motives. House price increases with respect to the price of the house itself seem to cause concern among households about future housing prices; hence, increase their savings ratio. House price increases with respect to income, however, seem to cause a wealth effect and then decreased savings ratio. Considering the complexity of households' reaction, the overall effect of house price changes on the aggregate savings ratio becomes impossible to determine.

scholarly journals Housing Tenure Choice of Low-Income Household in Jabodetabek

2020 ◽  
Vol 9 (1) ◽  
pp. 76-86
Author(s):  
Djoni Hartono ◽  
Reza A Budiman ◽  
Sasmita H Hastuti
Keyword(s):  
Low Income ◽  
Married Couples ◽  
Discrete Choice Models ◽  
Housing Tenure ◽  
Tenure Choice ◽  
Housing Tenure Choice ◽  
Newly Married ◽  
The Government ◽  
The Right ◽  
Negative Relationships

This study aims to identify the preferences of low-income people in making housing tenure choices within the next 5 years. Each person has the right to have a place to live in. However, the options available for low-income people to own a home are limited. Therefore, information on the preferences of low-income people in purchasing houses needs to be identified so that the government can formulate effective and efficient intervention policies. A sample of 1030 samples was obtained using the stratification sampling method, of which 638 are households had rental status (taking households with the lowest level of welfare between 10-40%) in the Regency and City. Discrete choice models were used to determine the preferences in owning a home. The study revealed that demographic variables and household characteristics variables (household size and length of stay) had consistent negative relationships with preferences for buying a house in the future. Also, the government needs to take action so that the socialization of housing policy becomes more optimal, effective and targeted. The goal of the policy socialization should be directed to newly married couples.

What is determining affordable housing shortages in the Greater Kuala Lumpur, Malaysia?

2019 ◽  
Vol 38 (1) ◽  
pp. 52-81
Author(s):  
Abdul Lateef Olanrewaju ◽  
Arazi Idrus
Keyword(s):  
Affordable Housing ◽  
Building Materials ◽  
Housing Prices ◽  
Primary Data ◽  
Kuala Lumpur ◽  
Cross Sectional Survey ◽  
Content Type ◽  
Housing Shortages ◽  
Housing Industry ◽  
The Government

Purpose The purpose of this paper is to investigate the determinants of the affordable housing shortage in the Greater Kuala Lumpur from the suppliers’ perspectives. Design/methodology/approach Primary data were collected through a cross-sectional survey questionnaire comprising 21 determinants and 111 experts in the housing industry. Findings The affordable housing shortages are consequences of regulations and policies on land allocations, building materials and the affordable housing market. The government should provide more lands to the developers or the government should directly build affordable housing on their lands. To lower the cost of construction, the government should reduce the importation tax and procedures, and the housing industry should find alternative building materials. Originality/value Theoretically, the research provided fresh insights into the causes of housing shortages and reasons for the increase in housing prices. The results will be useful to policymakers towards affordable housing delivery and to the developers and contractors on measures to increase profit margins and increase housing supply.

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.

ANALYSIS OF ECONOMIC DETERMINANTS OF AFFORDABLE HOUSING PRICES

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Abdullateef Olanrewaju ◽  
Lee Lim Tat ◽  
Seong Yeow Tan ◽  
Mine Naoto ◽  
Zafarullah Nizamani ◽  
...  
Keyword(s):  
Affordable Housing ◽  
Housing Stock ◽  
Housing Prices ◽  
Housing Supply ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Economic Determinants ◽  
Income Distributions ◽  
Supply And Distribution ◽  
The Government

There is high possibility that the housing shortage in Malaysia will remain for a long time. However, while the existing housing stock is insufficient, constraints on income distributions have created affordability gaps by creating an imbalance between demand and supply. To increase housing supply, the government is providing homes directly as well as providing tax reliefs and subsidies to the developers, contractors and prospective home buyers. However, despite the measures the housing supply and distribution gaps are growing persistently. Therefore, there is the need to provide answers to a number of questions. It is the aim of this current study to examine the economic determinants of affordable housing. Through a cross sectional survey questionnaire, involving 71 homeowners, 13 cost determinants were established for affordable housing. The study provides insight into cost determinants of affordable housing. The results will be useful to policy makers, developers towards and the prospective home buyers.

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