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Using a sample of developed and developing nations (including China and Hong Kong), this study examines the financial market and housing wealth effects on consumption. Housing performs the dual functions as both a commodity providing a flow of housing services and an investment providing a flow of capital income. With an empirical framework based on the permanent income hypothesis, this study's findings suggest that a rise in housing price has both a positive wealth effect and a negative price effect on consumption. While the positive wealth effect is caused by an increase in capital income from housing investment, the negative price effect is caused by an increase in the cost of consuming housing services. Moreover, the sensitivity of consumption to unanticipated changes in housing price is related to the level of financial and institutional development.

The purpose of this paper is to explore the role of the housing market in the monetary policy transmission to consumption among euro area member states. It has been argued that the housing market in one country is then important when its mortgage market is well developed. The countries in the euro area follow unitary monetary policy; however, their housing and mortgage markets show some heterogeneity, which may lead to different policy effects on aggregate consumption through the housing market.

The housing market can act as a channel of monetary policy shocks to household consumption through changes in house prices and residential investment – the housing market channel. The authors estimate vector autoregressive models for each country and conduct a counterfactual analysis to disentangle the housing market channel and assess its importance across the euro area member states.

The authors find little evidence for heterogeneity of the monetary policy transmission through house prices across the euro area countries. Housing market variations in the euro area seem to be better captured by changes in residential investment rather than by changes in house prices. As a result, the authors do not find significantly large house price channels. For some of the countries however, they observe a monetary policy channel through residential investment. The existence of a housing channel may depend on institutional features of both the labour market or with institutional factors capturing the degree of household debt as is the loan-to-value ratio.

The study contributes to the existing literature by assessing whether a unitary monetary policy has a different impact on consumption across the euro area countries through their housing and mortgage markets. The authors disentangle monetary-policy-induced effects on consumption associated with variations on the housing markets due to either house price variations or residential investment changes. The authors show that the housing market can play a role in the monetary transmission mechanism even in countries with less developed mortgage markets through variations in residential investment.

Residential crowding and underlying causes of crowding have been changing across the globe over time. The aim of this paper is to examine the dynamics of housing consumption and residential crowding in Hong Kong.

While the two‐step Engle‐Granger co‐integration approach based on an error correction model (ECM) is used to test for long‐run relation and short‐run dynamics of housing consumption, the study also uses a multivariate regression model to analyze the factors affecting residential crowding. Along with other variables in previous literature, the study introduces a new institutional factor, i.e. land supply, into the model that analyzes these two issues over a time span of 25 years.

The study's results suggest that many households in Hong Kong still have inadequate housing, and residential overcrowding is a serious issue. Coupled with market forces (e.g. income, housing price, household size), the new land supply factor noticeably has exerted significant influence on the two subject issues under investigation.

The paper provides policy implications that to address such deficiencies, the government should change its current land supply policy. A policy shift is recommended away from its “high‐land price” policy towards comprehensive developments in outer urban areas. This institutional change should help improve housing consumption in the territory overall.

This study adds knowledge to previous works in analyzing residential crowding and its underlying causes over the years, rather than in a particular point in time. It is also the first of its kind in Hong Kong.

This paper aims to examine the effect of housing wealth on household consumption when there are resale and refinancing constraints that prevent housing assets from being cashed out.

Based on Household Expenditure Survey data in Hong Kong from 1999 to 2010, regression analysis is applied to compare the housing wealth effects of private and subsidized homeowners. Propensity score matching is adopted to ensure that the two groups of homeowners share similar household income. Further regression analysis is conducted to examine private homeowners’ consumption when their recourse mortgages are in negative equity.

Subsidized homeowners, who are not allowed to resell their units before sharing their capital gain with the government, experienced an insignificant housing wealth effect. While private homeowners experienced a significant housing wealth effect, the effect was weakened in the presence of a resale constraint induced by negative equity. The results remain robust after the application of more rigorous sample selection through propensity score matching.

The analyses are subject to two potential data limitations. One is a relatively small sample size. The other is that data on financial assets and mortgages are unavailable and have to be indirectly controlled through household characteristics. Nevertheless, our estimated marginal propensity to consume out of housing wealth is 0.03 of the annual household consumption for private homeowners, which is within the range of estimates reported in previous literature.

This study shows that the housing wealth effect enjoyed in the private sector does not necessarily apply to the subsidized sector where resale and refinancing constraints exist. This is not to suggest that the constraints be removed. Rather, policymakers should be aware of the tradeoff: while the constraints ensure that government subsidies are used to assist home ownership, not capital gain, they also bring about consumption inequality in a society, especially in a booming housing market.

Our findings extend the literature on the housing wealth effect, which has been exclusively focusing on private homeowners, to subsidized homeowners. This study also adds to the literature on housing welfare by highlighting that the resale constraints of subsidized housing can weaken the housing wealth effect.

The purpose of this paper is to investigate the housing improvement expenditure as a consumption smoothing strategy for Japanese households.

Tobit estimation method is used to empirically investigate the role of home improvement expenditure in smoothing consumption for households in Japan using data from Japan Housing Demand Survey for 2003.

Findings suggest that: households in Japan use home improvement expenditure to adjust fluctuation in income. Income-constrained elderly households reduce their housing consumption by not improving their homes ceteris paribus in order to maintain their consumption levels. The mortgage repayment burden also plays an important role in home improvement expenditure decisions.

An implication of the analysis is that households who do not own houses may require policy intervention to maintain their welfare. Policies such as subsidies for renters in Japan need to be devised which will provide renters opportunities to smooth consumption. Further, reduction in home improvement expenditure leads to deterioration of quality of housing stock if economic downturn persists longer. This suggests that policies such as tax reduction, tax allowance or tax credit to bolster home improvement behaviour are needed during economic downturn to sustain quality of housing stock.

The paper contributes to the limited literature on the role of home improvement expenditure as a consumption smoothing instrument for households. Those who do not own houses are constrained in maintaining their welfare during downturn. Findings are important for policy makers and paper makes some suggestions in this regard.

The purpose of this paper is to explore the long‐run relation and short‐run dynamic correlations between consumption expenditure and household wealth, namely housing wealth and stock wealth.

This paper adopts aggregate time‐series data over the period of 1981Q1‐2010Q4 in Hong Kong. It employs the ARDL to cointegration procedure and the multivariate stochastic volatility (MSV) model to investigate the long‐run elasticity and dynamic correlations between aggregate consumption expenditure and household wealth indicators.

The results suggest that both housing wealth and stock wealth have significant effects on consumption expenditure after controlling for the aggregate income level. The long‐run elasticity of consumption expenditure with respect to housing wealth and stock wealth are 0.3877 and 0.1424 respectively, while the marginal propensity to consume for housing wealth and for stock wealth are 0.2159 and 0.0266 respectively. The dynamic correlation analysis implies that the decrease in housing and stock wealth may further depress consumer behavior and economic condition during the post‐financial crisis period.

This paper provides useful information with regard to the long‐run and dynamic relations between consumption and different types of wealth components.

The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017.

The authors aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Paiella and Pistaferri (2017).

Results of this study lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households.

The authors provide evidence against the permanent income model. They also analyse how the results change with income expectations, age and the household indebtedness rate. Finally, they detect a strong excess sensitivity to income.

To significantly adopt and improve indoor energy efficiency in building infrastructure in developing countries can be a challenging venture. Thus, this study aimed to assess the satisfaction of indoor environmental quality and its effect on energy use intensity and efficient among student housing.

The study is quantitative and hinged on the contrast theory. A survey of 1,078 student residents living in purpose-built student housing was contacted. Using Post-Occupancy Evaluation and Multiple Linear Regression, critical variables such as thermal comfort, visual comfort and indoor air quality and 21 indicators were assessed. Data on annual energy consumption and total square metre of the indoor area were utilised to assess energy use intensity.

The study found a direct relationship between satisfaction with indoor environmental quality and energy use intensity. The study showed that students were more satisfied with thermal comfort conditions than visual and indoor air quality. Overall, these indicators contributed to 75.9% kWh/m² minimum and 43.2% kWh/m² maximum energy use intensity in student housing in Ghana. High occupancy and small useable space in student housing resulted in high energy use intensity.

Inclusions of sustainable designs and installation of smart mechanical systems are feedback to student housing designers. Again, adaptation to retrofitting ideas can facilitate energy efficiency in the current state of student housing in Ghana.

Earlier studies have argued for and against the satisfaction of indoor environmental quality in student housing. However, these studies have neglected to examine the impact on energy use intensity. This is novel because the assessment of energy use intensity in this study has a positive influence on active design incorporation among student housing.

This paper aims to assess the effects of housing market shocks on real output in South Africa, by focusing on the real private consumption channel.

It measures housing market shocks as non-monetary housing shocks, uses a data set covering the period 1969Q4-2014Q4 and uses the agnostic identification procedure.

The paper finds that 20 per cent of the variation in house prices is explained by these shocks. The paper also finds that the effects of housing demand shocks on real private consumption are short-lived and generate a transitory real output response. Overall, housing demand shocks have managed to explain nearly 13 per cent and 14 per cent of the variation in real private consumption and real output respectively, over 20-quarters ahead forecast revision.

This finding suggests that shocks emanating from the housing market in the country are essential and should be considered when making macroeconomic policy decisions.

None of the existing studies, to our knowledge, have empirically assessed the effects of housing market shocks on real output directly. This paper attempts to contribute to the literature by assessing the direct impact of housing market shocks on the real output, using South Africa as a case study.

The aim of this paper is to study and evaluate the situation of different affordable housing projects with an eye toward developing a new affordable and sustainable housing model in the hot-arid climate of Jordan. There is a clear interest in providing affordable housing, yet sustainable and environmental issues are highly marginalized. To bridge this gap, and to meet Jordanian housing needs while tackling environmental problems, this research has analyzed the environmental issues of selected housing projects in Jordan, aiming to determine the existing problems. In addition, it proposes a solution through a sustainable and affordable housing model that was analyzed and compared to the previously studied housing projects.

A cross-sectional design strategy was adopted and a mixed design method was used. Information related to the physical and operation characteristics of buildings was collected through the review of “as built” drawings and other relevant documents. Further information was obtained from field surveys and personal interviews with architects and decision-makers in the housing sector. Energy consumption patterns of these housing projects were analyzed using the DesignBuilder simulation program. Water efficiency was assessed using the BRE Code Water Calculator. Based on the previous analysis, a new housing model was developed that was evaluated in terms of energy and water consumption.

The analysis shows a significant difference among different housing projects in terms of energy cooling and heating loads in different climatic regions in Jordan. Energy analysis proved that the proposed model is energy efficient in different locations and it can save up to 50.4 per cent of annual energy usage in comparison with existing projects. In addition, it can save around 43 per cent of water consumption by using a number of modifications for saving water.

Most of the housing initiatives focus on providing affordable housing, yet sustainable and environmental issues are highly marginalized. This research will bridge the gap by reducing the operation cost of affordable housing through adapting and implementing sustainable measures of design and construction.