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Article
Publication date: 1 June 2015

Chukwuma Christopher Nwuba, Iche U. Kalu and John A. Umeh

This paper aims to investigate homeownership affordability in Nigeria’s urban housing market to establish the determinants of households’ affordability outcomes, and the nature of…

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Abstract

Purpose

This paper aims to investigate homeownership affordability in Nigeria’s urban housing market to establish the determinants of households’ affordability outcomes, and the nature of their impact.

Design/methodology/approach

The cross-sectional survey design was adopted. Semi-structured questionnaire was used to collect data from a sample of households selected through a stratified random technique across Kaduna State, the study area. The binary logistic regression was used to model the probability of homeownership affordability as a function of specified explanatory variables.

Findings

Household income, savings, construction period and education are determinants of homeownership affordability with positive impact. Conversely, household size, cost of land, building cost inflation, current rental housing expenditures, non-housing expenditures and building cost relative to income are determinants of affordability with negative impact.

Practical implications

The findings have the potential to provide a framework for formulation of policy measures to improve access to homeownership.

Social implications

Delayed access to homeownership places pressure on the rented sector with the potential for rental housing affordability problems. It is a deferment of the actualisation of a strong aspiration which is detrimental to individual and family well-being and stability.

Originality/value

The study extends the housing affordability debate to housing markets operating on informal financing where households build rather than buy their homes, an area hitherto not deeply explored. It provides empirical basis for problem-solving on housing affordability and can be a framework for housing policy reforms in Nigeria.

Details

International Journal of Housing Markets and Analysis, vol. 8 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 8 July 2020

Rotimi Boluwatife Abidoye, Gitta Puspitasari, Riza Sunindijo and Michael Adabre

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…

Abstract

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.

Details

International Journal of Housing Markets and Analysis, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 15 December 2017

Richard A. Graff

The past century and a quarter can be divided into three successive eras for homeownership policy characterization. For the first four decades, the federal government pursued a…

Abstract

Purpose

The past century and a quarter can be divided into three successive eras for homeownership policy characterization. For the first four decades, the federal government pursued a laissez-faire policy that left housing issues to the individual states and private markets. For the next six decades, the federal government implemented a policy created as part of the Roosevelt New Deal program. Finally, the Clinton administration discarded the New Deal policy in favor of a more aggressive policy that has continued to the present day. The purpose of this study is to compare the performance of the respective policies.

Design/methodology/approach

The study introduces two metrics. The first metric, based on government homeownership rate data, enables comparison of the laissez-faire and New Deal policies. The second metric, based on financial frictions in the mortgage market, enables comparison of the New Deal and Clinton policies.

Findings

Analysis based on the first metric suggests the New Deal policy was successful in meeting its macroeconomic objectives and was more effective overall than the laissez-faire policy. Analysis based on the second metric suggests the New Deal policy was also more successful in both respects than the Clinton policy.

Practical implications

The findings suggest that the Clinton homeownership policy was the primary driver behind the recent US housing crisis and that vulnerability in the secondary mortgage market created by the Clinton policy represents systemic housing market risk.

Originality/value

The study introduces simple analytical tools to address problems related to systemic risk in the US housing and housing finance markets due to homeownership policy.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 21 June 2019

Wadu Mesthrige Jayantha and Olugbenga Timo Oladinrin

The purpose of this paper is to present a comprehensive assessment of the influential factors that must be considered in an effort to enhance homeownership.

Abstract

Purpose

The purpose of this paper is to present a comprehensive assessment of the influential factors that must be considered in an effort to enhance homeownership.

Design/methodology/approach

A list of 14 factors identified through the literature were assessed through a questionnaire survey with 502 useful responses. The data collected were analysed using mean item score (MIS), exploratory factor analysis (EFA) and structural equation modelling (SEM).

Findings

MIS analysis revealed “prioritizing lending towards first-time buyers”, “reforming planning process to allow building of more homes” and “introducing subsidies for all first-time buyers” as the most influential factors affecting homeownership. Using EFA, 3 key factors were generated from the 14 factors: subsidies and policy reforms; fiscal measures; and monetary measures. The SEM results show that all three factors have a significant positive effect on homeownership at different levels.

Originality/value

This paper empirically examines the enabling factors for homeownership in Hong Kong, revealing a clear effect of various group factors on homeownership. The paper proposes practical and policy recommendations to improve homeownership rate.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 6 August 2018

Weizhuo Wang, Christopher Gan, Zhiyou Chang, David A. Cohen and Zhaohua Li

This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program, with a…

Abstract

Purpose

This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program, with a focus on factors that influence the use of HPF loans.

Design/methodology/approach

This paper develops and estimates a logit model of whether homeownership could be promoted by participation in and use of the HPF program, with a focus on factors that influence the use of HPF loans.

Findings

The results show that coefficients of marital status, educational level, age, duration of employment and employer are significantly related to the use of HPF loan for homeownership.

Research limitations/implications

Because of the chosen research approach, the research results may lack generalizability.

Practical implications

The research findings provide a better understanding of homeowners’ characteristics.

Originality/value

To manage the HPF program effectively, it is important for government to have a better understanding of the underlying demand for homeownership, especially with respect to the different demographic variables and accessibility to HPF loans and the HPF.

Details

Journal of Asia Business Studies, vol. 12 no. 3
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 29 May 2018

Chukwuma C. Nwuba and Eunice Oluwakemi Chukwuma-Nwuba

The purpose of this study is to investigate barriers to accessing mortgages in Nigeria’s urban housing markets with the main focus on Kaduna State. The objective was to establish…

Abstract

Purpose

The purpose of this study is to investigate barriers to accessing mortgages in Nigeria’s urban housing markets with the main focus on Kaduna State. The objective was to establish the diverse factors that constitute barriers to urban households’ access to mortgages for homeownership from the perceptions of households, mortgage lenders and the Federal Mortgage Bank of Nigeria.

Design/methodology/approach

The study used cross-sectional survey with triangulation of results. To enable the triangulation, three new samples were developed from 450 surveys with households and 10 completed by lenders, both in Kaduna State and one survey undertaken by the Federal Mortgage Bank of Nigeria. Data were collected with questionnaires designed on five-point Likert model. Data analysis utilized descriptive statistics and one-sample t-test. Triangulation enabled cross-validation of the results.

Findings

The barriers include low incomes and savings which constrain households’ ability to pay mortgage instalments and deposits, respectively, high interest rates, poor access to land, inability of potential borrowers to provide certificates of occupancy on their land, inadequate loanable funds and inadequate number of mortgage lending institutions.

Practical implications

The study has the potential to provide a basis for mortgage market reforms. Mortgage market reforms should be encompassing because it requires action in some other sectors.

Social implications

The social implication of the study is the possibility of motivating actions to deal with the diverse barriers to accessing mortgages which have constituted deterrents to households from realizing their homeownership aspirations and enjoying the benefits of homeownership and consequently contributing to inadequate housing and poor living conditions.

Originality/value

The study provides distinctive insight into Nigeria’s mortgage market by integrating the views of various stakeholders on a subject of social and economic significance. It contributes to the evidence-base around mortgage market reforms in Nigeria.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 4
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 3 August 2015

Ratenesh Anand Sharma and Laurence Murphy

This paper aims to examine the housing experiences of Fijian migrants in Auckland, New Zealand, in response to recent calls for greater attention to be given to the housing…

Abstract

Purpose

This paper aims to examine the housing experiences of Fijian migrants in Auckland, New Zealand, in response to recent calls for greater attention to be given to the housing experiences of a wider range of migrant groups. The paper seeks to extend the understanding of the housing experiences of a migrant group that have the economic and social resources that are likely to see them achieve housing outcomes beyond the usual “niche” and limited segments of the housing market usually available to migrants.

Design/methodology/approach

This paper used a questionnaire survey designed to uncover the housing experiences and levels of satisfaction of Fijian migrants living in Auckland. Developing on the works of literature that have addressed ethnic residential segregation and migrant housing outcomes, this paper addresses the housing experiences of a well-established migrant community that possesses significant human capital (skills, education, English language proficiency) but occupies a hybrid cultural identity.

Findings

The majority of the 84 respondents had attained homeownership. Homeownership was prized for conveying a sense of “independence” and was aligned with notions of Fijian Indian culture. Both homeowners and renters expressed high levels of satisfaction with the locational attributes of their homes. While the majority of renters aspired to homeownership, a lack of affordable housing was noted. Homeowners recognised that they had benefitted from accessing homeownership when house prices were more affordable and believed that current and future migrants would struggle to buy a house in the Auckland housing market.

Research limitations/implications

In the absence of a sampling frame, this research employed a purposive sampling technique that distributed questionnaires among Fijian migrant community groups and ethnic businesses. As the first study of its kind into the housing experiences of Fijian migrants in Auckland, the sample size (84 respondents) and geographical distribution of respondents was deemed sufficient to offer insights into the community’s housing experiences. The findings of this research could be used to develop a larger-scale analysis of the housing experiences of Fijian migrants in Auckland.

Originality/value

While considerable attention has been given to documenting the locational distribution of migrants in Auckland, this is the first study to examine the housing experiences of Fijian migrants. The paper adds to the understandings of the variety of migrant housing outcomes by focussing on the experiences of a well-established migrant group that possesses significant human capital and occupies a distinct ethnic position within Pacific migration flows.

Details

International Journal of Housing Markets and Analysis, vol. 8 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 17 January 2024

Xueqi Wang, Graham Squires and David Dyason

Homeownership for younger generations is exacerbated by the deterioration in affordability worldwide. As a result, the role of parental support in facilitating homeownership

Abstract

Purpose

Homeownership for younger generations is exacerbated by the deterioration in affordability worldwide. As a result, the role of parental support in facilitating homeownership requires attention. This study aims to assess the influence of parental wealth and housing tenure as support mechanisms to facilitate homeownership for their children.

Design/methodology/approach

This study uses data from a representative survey of the New Zealand population.

Findings

Parents who are homeowners tend to offer more financial support to their children than those who rent. Additionally, the financial support increases when parents have investment housing as well. The results further reveal differences in financial support when considering one-child and multi-child families. The intergenerational transmission of wealth inequality appears to be more noticeable in multi-child families, where parental housing tenure plays a dominant role in determining the level of financial support provided to offspring.

Originality/value

The insights gained serve as a basis for refining housing policies to better account for these family transfers and promote equitable access to homeownership.

Details

International Journal of Housing Markets and Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 27 July 2012

Verena Bentzien, Nico Rottke and Joachim Zietz

Relative to comparable industrialized countries, Germany stands out in terms of its low homeownership rate (43 percent). For Germany, it is unknown so far to what extent the low…

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Abstract

Purpose

Relative to comparable industrialized countries, Germany stands out in terms of its low homeownership rate (43 percent). For Germany, it is unknown so far to what extent the low rate of homeownership can be related to housing being unaffordable. One reason for the lack of evidence is the apparent lack of data. The purpose of this paper is to fill this gap.

Design/methodology/approach

Based on a regional dataset of 3.9 million asking prices of housing units collected by a real estate listing engine, the paper applies internationally established affordability concepts to the German housing market. The authors then run a number of cross‐section regressions at the level of the 16 German federal states, using the affordability measures as explanatory variables of the rate of homeownership.

Findings

The results show that the average German household would have to sacrifice a large part of its non‐housing consumption to afford homeownership, especially of single‐family homes. As the regional analysis reveals, certain types of household can even be considered excluded from the ownership market in some particularly unaffordable states with cost burdens of over 50 percent, such as Bavaria. The cross‐section regression results for the 16 federal states affirm the importance of affordability as a determinant of the homeownership rate.

Research limitations/implications

The official data on ownership rates are rather spotty over time and only available for a single year (2006) for the time frame that is considered for the affordability analysis (2005‐2010). Given the data limitations, the regression analysis has to be confined to a single cross section least squares regression for 2006. The authors are aware that to obtain truly convincing results, it would be necessary to capture the development of ownership rates in different localities in Germany, such as the 16 federal states, over time and to check to what extent the affordability measures can explain any of the variation in ownership rates in a panel data framework with fixed effects for federal states and time. However, the authors feel that the regression results may serve as a starting point; they are better than a set of simple correlations, even if they constitute not a conclusive causal analysis.

Practical implications

Any public policy initiative to raise Germany's homeownership rate will have to address the question of how to make housing more affordable. The recent elimination of homeowner subsidies is working in exactly the opposite direction.

Originality/value

The affordability approach used is technically not new or challenging, but it offers a basis for comparison that has been conspicuously lacking so far for the fourth largest economy of the world. By applying affordability concepts that are well accepted and in use internationally, the authors believe that they can provide at least some suggestive evidence that can further spur research into the affordability issue. While the authors do not break new methodological ground with their paper, they do provide a basis of comparison for policy discussion and for further research. Germany provides a unique environment for affordability research, due to its reunification history, observations from which may thus yield insights valuable to the international research community.

Details

International Journal of Housing Markets and Analysis, vol. 5 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 13 September 2023

Xueqi Wang and Graham Squires

This paper aims to define intergenerational housing support and assesses and synthesizes the existing literature on intergenerational support for housing to identify trends and…

149

Abstract

Purpose

This paper aims to define intergenerational housing support and assesses and synthesizes the existing literature on intergenerational support for housing to identify trends and possible areas for future research.

Design/methodology/approach

The methodology employed in this paper is a systematic literature review. A total of 32 articles were chosen for assessment. Upon thorough review, summary and synthesis, general trends and three specific themes were identified.

Findings

The review of 32 papers found that intergenerational support is a crucial strategy to help younger generations achieve homeownership. However, it also highlights the potential for social inequity resulting from unequal distribution of housing resources within families, especially regarding housing. Several potential gaps in the current research are identified, including the need for explicit attention to the provider's intention, exploration into the size and form of financial support for housing, understanding how parental housing resources differ in their transfer behaviors, and examining how parental motivations influence them to provide housing support.

Originality/value

This paper provides recommendations for further research on the topic, while also adding perspective to understand the micro-social mechanisms behind the intergenerational reproduction of socioeconomic inequality, especially in the housing market.

Details

Property Management, vol. 42 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

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