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The purpose of this paper is to examine the effects of financialisation on the changing structure of housing supply in Malaysia. The share of newly launched sub-MYR250,000 houses has been decreasing continuously in the past decade. This implies that housing developers are launching more expensive houses. The greater focus on higher cost housing could be attributed to inflation. But while input cost is rising, the housing sector has also become increasingly financialised. This claim can be supported by the rising share of mortgage and real estate loans in gross domestic product. Financialisation is a process in which the financial sector becomes more dominant relative to the real sector. The extent to which this process is responsible for the changing structure of housing supply in Malaysia is investigated.

A survey of the literature suggested that the decreasing the proportion of newly launched sub-MYR250,000 housing could be result of rising input cost, greater degree of financialisation and changing market concentration. Thus, long-run cointegrating equations were formulated and estimated. These equations linked housing share with financialisation, market structure and input cost. The quantitative and qualitative impact of financialisation on the structure of housing supply is of interest.

The analyses of secondary data suggested that financialisation and input cost did indeed contribute to the decrease in proportion of newly launched sub-MYR250,000 housing. However, the impact of market concentration on housing share was ambiguous. This conclusion survived several robustness checks.

The financialisation of the housing sector implies that developers are increasingly building for profits instead of accommodating the social objective of providing shelter. This result is unsettling because access to adequate housing is a human right. The transformation of housing from the concept of a shelter to a tradable, money-making asset could be a major contributor to the declining housing affordability in the country. Thus, efforts to improve affordability must take account of the effects of financialisation.

An empirical framework for assessing the changes in the structure of housing supply was developed. Existing studies tended to focus only on the volume of housing supply. It is a comprehensive study on changes in the structure of housing supply. Second, while existing studies on the financialisation of housing are mostly qualitative in methodology, this paper offers a quantitative assessment of the financialisation in the housing sector.

The purpose of this paper is to assess the possibility of asymmetric impact of monetary policy on housing permits issued in each state of the USA.

The methodology and approach are based on the linear ARDL and nonlinear ARDL approach to error-correction modeling and asymmetric cointegration.

The linear models predict that money supply impact housing permits in 28 states in the short run and only nine states in the long run. However, the asymmetric effects are far more pervasive, highlighting the restrictive nature of the linear model. The results from the nonlinear model show at least one lag of positive and/or negative changes in money supply significantly impacts housing permits in nearly all states. Even in the long run, housing permits in 32 states share a long-run relationship with positive and/or negative changes in money supply. The authors also find contractionary monetary policy has a greater influence on housing permits in most states compared to expansionary policy.

For the first time, the authors use state-level data and asymmetric approach to assess the impact of monetary policy on house permits issued in each state of the USA.

This paper aims to explore the determinants of housing supply and the relationships between land supply and housing supply in terms of quantity and time in Shanghai, China.

Official statistical and property registration data[] from Shanghai are used to carry out multiple linear regression analysis.

The authors find that land supply affects housing supply with a three-year time lag. Both construction cost and housing price impact supply with a one-year time delay. The construction cost elasticities range from 0.74 to 1.51, while housing price elasticity is 2. The authors also find that plot ratio may play more important role in the developer’s first housing sale than either plot area or sales price. An average time period from obtaining the land for residential development until marketing the product is established at 36.8 months.

Only ordinary least squares method is applied in this analysis and the property portal on which this research relies is still at an early stage.

This research contributes to a wider understanding of issues surrounding housing supply in the local markets within China and provides the foundation for local government to better manage supply.

The purpose of this paper is to use local-level time series data to examine the determinants of housing starts and the price elasticity of supply for the Aberdeen local housing market.

Seven time series models are used in the analysis. The basic model treats housing starts as a function of the changes of current and lagged house prices, interest rate and construction cost. The other six models which are extensions of the basic model include other variables like time on the market, planning constraints and future expectations.

It is found that the local variables – changes in house prices, time on the market, planning regulation, lagged stock and lagged and future housing starts – are the main factors that influence new residential construction in Aberdeen. None of the national variables is significant, confirming the importance of limiting housing market analysis to the local level. The price elasticity of supply estimated is in the range of 2.0 to 3.2 for housing starts and 0.01 to 0.02 for housing stock. These estimates are higher than most of the elasticities for the other UK local markets.

There is the need to better understand the supply of housing at the various local housing markets. Unfortunately, however, most housing supply studies use national data. Because national data are aggregation of local data, using national studies results for local markets may be uninformative. Also, the few existing local studies use typically cross-section data or at least time series over relatively short time spans. This paper makes an effort to use quarterly time series data over a 25-year period for a local market and also include a planning variable which is different from local markets and often ignored in national or regional studies.

The housing sector in Jordan suffers from a lack of balance between supply and demand, in general, and from the inability to meet the demands of low‐income households, in specific. The purpose of this paper is to explore the potentials and obstacles facing low‐income housing supply. It is shown that there is undersupply in low‐income housing.

The attributes of the supply–demand model are explored using qualitative and quantitative research methods. The first research step was archival. Findings indicated a presence of major obstacles facing developers and hindering them from supplying low‐income housing. The second research step included face‐to‐face interviews with the local developers in three major cities: Amman, Irbid and Zarqa. They were interviewed using a semi‐structured and open‐ended questionnaire.

Results indicated that most plausible causality of undersupply of low‐income housing is due to macro‐environment attributes: controllable – management (lack of human resources and capacity building), real estate (lack of marketing skills and sales advertising), technology and construction industry (inaccessible appropriate building technology and affordable construction), land ownership and site selection (limited to the developers geographical area); and uncontrollable – financing (small capital operation and difficulties in bank loans and lending), government policies (lack of incentives, tax exemptions, and rigid laws and regulations), and social and cultural (social needs requires certain spatial arrangements and rejection of borrowing from financial institutions for religious reasons).

The study recommends increasing supply of low‐income housing can be achieved by various means and not by single attribute. Attributes affecting this price reduction and increase homeownership include implementing real estate principles and processes, co‐operation of all key‐players through various forms of public/private partnership, facilitating procedures in commercial banks, increasing the number of units that share services and infrastructure, constructing multi‐use housing projects, defining gradual revenue rates for services and limiting revenue rates for the housing units, developing local construction material, using simple shapes and configurations, and reducing non‐used space like the formal reception and dining areas despite their cultural value.

Statistical inferences will be needed in a future study to complement the present study's investigation of low‐income housing production in Jordan.

As the first of its kind, the research help to identify policy implications for different partners (housing developers, local planning authorities, national housing and planning authorities and government policy makers) in order to increase homeownership for low‐income groups.

The purpose of this study is to conduct a thorough empirical investigation of the intricate relationship between urban housing sales prices and land supply prices in China, with the aim of elucidating the underlying economic principles governing this dynamic interplay.

Using monthly data of China, the authors use the asymmetry nonlinear autoregressive distributed lag (NARDL) model to test for nonlinearity in the relationship between land supply price and urban housing prices.

The empirical results confirm the existence of an asymmetric relationship between land supply price and urban housing prices. The authors find that land supply price has a positive and statistically significant impact on urban housing prices when land supply is increasing. Policymakers should strive to strike a balance between safeguarding residents’ housing rights and maintaining market stability.

Although the asymmetric effect of land supply price has been identified as a significant contributor in this study, it is important to note that the research primarily relies on time series data and focuses on analysis at the national level. Although time series data offer a macroscopic perspective of overall trends within a country, they fail to adequately showcase the structural variations among different cities.

To ensure a stable housing market and meet residents’ housing needs, policymakers must reexamine current land policies. Solely relying on restricting land supply to control housing prices may yield counterproductive results. Instead, increasing land supply could be a more viable option. By rationally adjusting land supply prices, the government can not only mitigate excessive growth in housing prices but also foster the healthy development of the housing market.

First, the authors have comprehensively evaluated the impact of land supply prices in China on urban housing sales prices, examining whether they play a facilitating or mitigating role in the fluctuation of these prices. Second, departing from traditional linear analytical frameworks, the authors have explored the possibility of a nonlinear relationship existing between land supply prices and urban housing sales prices in China. Finally, using an advanced NARDL model, the authors have delved deeper into the asymmetric effects of land supply prices on urban housing sales prices in China.

Due to greater returns to high skill and desirable amenities, high-skilled workers are increasingly agglomerating in metropolitan areas and form path dependence. This chapter explores whether the land supply policy of China constraining big cities' urban construction land quota strengthens the spatial divergence of human capital. Using city-level land supply data, population census data, and land transaction micro data, we find that the higher the degree of a city's land supply lagging behind land demand, the greater the enlargement effect of the initial share of population with college degrees on the increase in share of population with college degrees. Further research reveals that the main mechanism causing this phenomenon is the rapidly rising housing prices hindering low-skill labor flows to big cities.

In this paper, we identify the relationship between (local) housing supply and (local) house price developments, especially in The Netherlands.

We measure the influence of new building on house prices by comparing areas designated for concentrated new building (main Dutch cities) with areas where no large housing projects are developed. On the basis of classical economic theory, if the housing market is functioning as it should, then supply will soon respond to a shock in demand and restore stability in house prices.

For the main Dutch cities, we found that an increase in supply triggers a fall in prices. In other areas the correlation coefficients are more or less zero, which can lead us to conclude that the expansion of the housing stock is market‐compliant.

The housing market is not functioning, as it should: new supplies depend on the complex decisions of the suppliers, thus making it difficult to express statistically the causality between the house price developments and the new supplies.

Most studies suggest that macro data are unable to measure the true dependency between the house prices and the new building and claim at the same time that micro data sets are incomplete. Also our research was hampered by a shortage of usable data.

New building can push up the value of the surrounding housing because it is associated with a qualitatively better housing stock. We conclude that in regions where new building has been concentrated in designated areas, the relationship between housing production and price development is inverse.

The paper develops a housing model equation for Spain and selected regions to estimate new supply elasticity. The aim of the paper is to assess the role of housing supply on price evolution and explain the fall in housing starts since the start of the credit crunch.

The paper uses a pooled EGLS specification controlling for the presence of cross-section heteroskedasticity. Fixed effect estimators are calculated to capture regional heterogeneity. The model uses secondary data (quarterly) for 17 Spanish regions over the period 1990-2012. A recursive procedure is applied to estimate model parameters starting with a baseline model (1990-1999) and successively adding one-year time information. Elasticities, as well as explanatory power from models, are reported and jointly analyzed. Elasticity is interpreted as the extent to which market mechanisms drive developer responses.

Elasticities of new supply are shown to be very stable during all periods but characterized by differences in response at a regional level. Elasticity ranges from 0.8 to 1.3 across regions. The model reports a non-market-oriented mechanism that guides building decisions. The credit crunch and debt crisis have had a double negative effect capturing the cumulative effect of exogenous shocks.

Elastic responses restrained the effects of over-pricing in the period of strong demand pressures in the early 2000s. Changes in elasticity parameters over time suggest that long-term elasticity in housing supply depends on the specific region analyzed. The results show that the credit crunch shock had varying degrees of severity in Spanish regions, dramatically reducing house-building because of the high sensitivity to changes in prices.

Estimated elasticity may be used to forecast responses to changes in housing prices. The results add to the understanding of the equilibrium mechanism in the housing market across regions.

This is the first article that analyses housing supply, calculates supply elasticities and measures the impact of the credit crunch on the housing market from the supply side in Spain. The paper adds evidence to the debate concerning the equilibrium mechanism in the housing market.

The purpose of this paper is to investigate the factors that affect the responsiveness of new housing supply to price changes in Denmark, France, Germany, The Netherlands, Spain, the UK and the USA. The practical purpose is to identify and consider the similarities and differences in the factors that affect new housing supply amongst the selected countries.

Quantitative estimates of the price elasticity of new housing supply were reviewed and evaluated. Generally they were found to describe and measure but not explain variations in housing supply responses to house price changes. Qualitative research was undertaken based on case study interviews with experienced senior managers of house‐building firms with the objective of obtaining insights into the variables affecting housing supply in each country.

First, quantitative studies provide necessary but insufficient explanation of the factors determining new housing supply. Second, there are a large number of macro‐economic, micro‐economic and institutional factors that explain new housing supply which appear to vary in absolute and relative importance between countries.

The primary research findings are based on a small number of case study interviews. Further work is required to confirm the insights using more interviews and/or large‐scale surveys. The work could also be undertaken at other times in different market conditions.

Factors explaining variations in new housing supply in each country have been shown to vary amongst countries. Policy makers can address these factors in achieving balance between supply and demand, and in understanding what needs to be done to increase new housing supply.

The research demonstrates the value of adopting a pluralist methodology in measuring and explaining the causes of variations in new housing supply.