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1 – 10 of over 52000It was not until the late 1960s that housing attracted much attention from academic social scientists. Since that time the literature has expanded widely and diversified…
Abstract
It was not until the late 1960s that housing attracted much attention from academic social scientists. Since that time the literature has expanded widely and diversified, establishing housing with a specialised status in economics, sociology, politics, and in related subjects. As we would expect, the new literature covers a technical, statistical, theoretical, ideological, and historical range. Housing studies have not been conceived and interpreted in a monolithic way, with generally accepted concepts and principles, or with uniformly fixed and precise methodological approaches. Instead, some studies have been derived selectively from diverse bases in conventional theories in economics or sociology, or politics. Others have their origins in less conventional social theory, including neo‐Marxist theory which has had a wider intellectual following in the modern democracies since the mid‐1970s. With all this diversity, and in a context where ideological positions compete, housing studies have consequently left in their wake some significant controversies and some gaps in evaluative perspective. In short, the new housing intellectuals have written from personal commitments to particular cognitive, theoretical, ideological, and national positions and experiences. This present piece of writing takes up the two main themes which have emerged in the recent literature. These themes are first, questions relating to building and developing housing theory, and, second, the issue of how we are to conceptualise housing and relate it to policy studies. We shall be arguing that the two themes are closely related: in order to create a useful housing theory we must have awareness and understanding of housing practice and the nature of housing.
N.T. Khuong Truong, Susan J. Smith, Gavin Wood, William A.V. Clark, William Lisowski and Rachel Ong ViforJ
The purpose of this paper is to consider one test of a well-functioning housing system – its impact on wellbeing. Exploring one indicator of this, this study aims to track changes…
Abstract
Purpose
The purpose of this paper is to consider one test of a well-functioning housing system – its impact on wellbeing. Exploring one indicator of this, this study aims to track changes in mental and general health across a mix of tenure transitions and financial transactions in three jurisdictions: Australia, the UK and the USA.
Design/methodology/approach
Using matched variables from three national panel surveys (Household, Income and Labour Dynamics in Australia, British Household Panel Survey/Understanding Society and Panel Study of Income Dynamics) over 17 years (2000–2017) to capture the sweep of the most recent housing cycle, this study adopts a difference-in-difference random-effects model specification to estimate the mental and general health effects of tenure change and borrowing behaviours.
Findings
There is an enduring health premium associated with unmortgaged owner-occupation. Mortgage debt detracts from this, as does the prospect of dropping out of ownership and into renting. A previously observed post-exit recovery in mental health – a debt-relief effect – is not present in the longer run. In fact, in some circumstances, both mental and general health deficits are amplified, even among those who eventually regain homeownership. Though there are cross-country differences, the similarities across these financialised housing systems are more striking.
Practical implications
The well-being premium traditionally associated with owner occupation is under threat at the edges of the sector in all three jurisdictions. In this, there is cross-national convergence. There may therefore be scope to introduce policies to better support households at the edges of ownership that work across the board for debt-funded ownership-centred housing systems.
Originality/value
This paper extends the duration of a previous analysis of the impact of tenure transitions and financial transactions on well-being at the edges of ownership in the UK and Australia. The authors now track households over nearly two decades from the start of the millennium into a lengthy (post-global financial crisis) era of declining housing affordability. This study adds to the reach of the earlier study by adding a general health variable and a third jurisdiction, the USA.
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Porfirio Guevara, Robert Hill and Michael Scholz
This study aims to show how hedonic methods can be used to compare the performance of the public and private sector housing markets in Costa Rica.
Abstract
Purpose
This study aims to show how hedonic methods can be used to compare the performance of the public and private sector housing markets in Costa Rica.
Design/methodology/approach
Hedonic price indexes are computed using the adjacent-period method. Average housing quality is measured by comparing hedonic and median price indexes. The relative performance of the public and private sector residential construction is compared by estimating separate hedonic models for each sector. A private sector price is then imputed for each house built in the public sector, and a public sector price is imputed for each house built in the private sector.
Findings
The real quality-adjusted price of private housing rose by 12 per cent between 2000 and 2013, whereas the price of private housing rose by 9 per cent. The average quality of private housing rose by 45 per cent, whereas that of public housing fell by 18 per cent. Nevertheless, the hedonic imputation analysis reveals that public housing could not be produced more cheaply in the private sector.
Social implications
The quality of public housing has declined over time. The hedonic analysis shows that the decline is not because of a lack of competition between construction firms in the public sector. An alternative demand side explanation is provided.
Originality/value
This study applies hedonic methods in novel ways to compare the relative performance of the public and private housing sectors in Costa Rica. The results shed new light on the effectiveness of public sector housing programs.
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In France, social housing provides a significant proportion of housing services. The present contribution seeks to identify housing careers for social tenants, using event history…
Abstract
In France, social housing provides a significant proportion of housing services. The present contribution seeks to identify housing careers for social tenants, using event history analysis on a sample of over 40,000 households located in the Lille metropolitan area (in northern France). The data was provided by a local social housing company, and contains extensive geographical information. The analysis was conducted for the metropolitan area and for its three main cities (Lille, Roubaix and Tourcoing). This made it possible to measure the effect of geographical location at both the agglomeration and neighbourhood levels. Our main results are threefold. First, access to better housing depends more on individual characteristics than on residential location; thus, it appears that comparatively favoured households may use social housing to increase their “upward mobility.” Secondly, forced mobility (eviction) depends on household histories and characteristics, but is spatially heavily concentrated. Finally, urban renewal, by increasing the quality of the built environment, tends - at least in some neighbourhoods - to make social housing more desirable (by giving households a stronger incentive to stay). It may thus improve the quality of life of people who are less likely to become homeowners or to access larger/more comfortable houses.
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This paper aims to extend existing research in relation to both the importance of volume effects within housing markets and the specific behaviour of the London housing market. A…
Abstract
Purpose
This paper aims to extend existing research in relation to both the importance of volume effects within housing markets and the specific behaviour of the London housing market. A detailed borough-level examination is undertaken of the relationships between volume, house prices and house price volatility. Support for alternative housing market theories, the degree of heterogeneity in house price behaviour across boroughs and the extent to which housing displays differing properties to other financial assets are examined.
Design/methodology/approach
Correlation analyses, causality testing and volatility modelling are undertaken in extended forms which synthesise and extend approaches within the housing, economics and finance literatures. The various modelling and testing techniques are supplemented via the use of alternative variable transformations to evaluate housing market behaviour in detail.
Findings
Novel findings are provided concerning both volume effects within housing markets generally and the specific properties of London housing market. Evidence concerning bubbles, the volatility-reducing effects of volume, the importance of geographical and price-related factors underlying the relationship between volume and both house price growth and volatility and the presence of asymmetric adjustment in the London housing market are all provided. The extent and nature of the support available for alternative housing market theories are evaluated.
Originality/value
The volatility-reducing effects of volume within housing markets, along with volume effects and the presence of asymmetric adjustment within the London housing market are examined for the first time. New empirical evidence on the support for alternative housing market theories and the differing empirical characteristics of housing relative to other financial assets are presented.
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The purpose of this study is to analyze short- and long-run market-sensitive drivers of housing affordability. The study highlights an ongoing housing affordability crisis in an…
Abstract
Purpose
The purpose of this study is to analyze short- and long-run market-sensitive drivers of housing affordability. The study highlights an ongoing housing affordability crisis in an emerging market context by also providing an empirical tool to combat the crisis.
Design/methodology/approach
To investigate determinants of uniquely constructed effective housing affordability index and house price to income ratio index, the author uses a bound testing approach to cointegration and error correction models, besides causality tests, variance decompositions and impulse response functions. This study uses Turkish data for the period of 2007 M06 and 2017 M12.
Findings
The evidence suggests that the housing affordability crisis is mainly driven by credit expansion, rent and construction costs. A sensible housing policy response would target these variables. This evidence suggests that housing affordability mostly depends on housing market dynamics rather than policies because of the exogeneous/cyclical natures of the drivers.
Research limitations/implications
Data constraints shape the study. A regional or an aggregate-level panel study cannot be developed because of a lack of data. This limitation inevitably results in the exclusion of relevant socio-economic/political factors and is also the main reason for the lack of comparative analysis in a cross-country setting.
Practical implications
This study argues that dependency on neoliberal housing market practices seems the underlying reason for the lack of efficient policy answers and the ongoing affordability crisis. From a policymaking perspective, the study suggests that necessary policy measures to resolve the housing affordability crisis may give a specific emphasis on housing rent, housing credit volume and construction costs as the major components of the crisis.
Originality/value
This study develops a novel measure and presents a new conceptual framework by combining quantitative research methods and policymaking in housing affordability. In this respect, to the best of the author’s knowledge, this is the first work to comparatively investigate the determinants of uniquely developed monthly housing affordability measurements.
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Studies have shown that economic expansion is characterized by the activities in the productive and industrial sectors. And, recently, the Republic of Cyprus has consistently…
Abstract
Purpose
Studies have shown that economic expansion is characterized by the activities in the productive and industrial sectors. And, recently, the Republic of Cyprus has consistently experienced a relative economic growth. In this light, the current study revisits the dynamics of the housing market and its fundamentals for Cyprus using the quarterly data from 2005Q1 to 2016Q4.
Design/methodology/approach
Producer price and industrial production indices were employed along with the gross domestic product per capita and urban population as control variables. The empirical technique employed is the dynamic and fully modified ordinary least square approaches where unobserved factors are potentially controlled.
Findings
Empirical evidence of long-run relationship exists between the observed indicators and the house price. Indicatively, statistical evidence reveals a positive and significant long-run relationship between the producer price index and the house price. In a similar manner, there is a strongly significant but a negative long-run nexus of industrial production index and the house price. And, expectedly, the observed long-run nexus of the house price and each of real gross domestic product per capita and the urban population is positive and significant. Interestingly, there exists significant unidirectional Granger causality from each of the independent variables to the housing price. Lastly, the robustness check and the diagnostic test of the investigation suggest a very consistent result and stable model with no problems of serial correlation and heteroskedasticity.
Research limitations/implications
The fragility of Cyprus's housing market suggests the need for the adoption of an effective policy framework.
Originality/value
Although the housing market has been studied in the context of the Republic of Cyprus, the novelty is hinged on the joint incorporation of the industrial and producer price indices in a housing model of the study.
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Richard J. Dunning and Andrew Grayson
The purpose of this paper is to renew a research agenda considering the impact that information providers’ processes are having on the housing market; in particular to develop a…
Abstract
Purpose
The purpose of this paper is to renew a research agenda considering the impact that information providers’ processes are having on the housing market; in particular to develop a research agenda around the role of the Internet in shaping households’ perceptions of the spatial nature of housing markets.
Design/methodology/approach
This paper reviews the existing literature. It uses preliminary extensive survey findings about the role of the Internet in housing search to hypothesise ways in which households may be affected by this transition.
Findings
Not applicable – other than evidence for the growth in the importance of the Internet in shaping households’ housing search.
Practical implications
First, the academy needs to readdress the theory surrounding information acquisition and use insights from economics, sociology and psychology to understand these processes. Second, local authorities and academics should analyse the impact of Internet use on housing market boundaries (and the profound subsequent impact on policy traction). Third, estate agents should reconsider the role of the Internet in shaping housing markets and provide a critical response to the large property search engines.
Originality/value
This paper reviews the literature and explores the necessity of a renewed interest in research on the role of information sources in framing and constraining housing search behaviour.
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Paloma Taltavull de La Paz and Karen Martin Gibler
Large numbers of Northern European retirees have migrated to Southern European countries. A relevant part of this migration is not driven by work purposes but rather the desire to…
Abstract
Purpose
Large numbers of Northern European retirees have migrated to Southern European countries. A relevant part of this migration is not driven by work purposes but rather the desire to establish residence in a warmer country. These migrants come from different countries and exhibit diverse socioeconomic characteristics and preferences, including varying income levels, housing tastes and cultural habits, which could potentially influence the housing market in their host countries. This paper aims to examine the permanent impact of retiree migrant flows on house prices in Alicante, Spain, from 1988 to 2019, explicitly considering the impact related to the country of origin.
Design/methodology/approach
This paper examines the permanent impact of retiree migrant flows on house prices in Alicante, Spain, from 1988 to 2019, explicitly considering the impact related to the country of origin using panel cointegration – Dynamic Ordinary Least Squared (DOLS) models.
Findings
Results indicate that the long-term relationship captures the entire effect on house price change and that prices react immediately to the immigrants' presence with permanent effects. The results also suggest that the strong retiree migration flow created a shock in the housing market with different effects on house prices related to the immigrants' country of origin. The model identifies that when income growth in the origin country is slower than in Spain it has a major impact on house prices. When purchasing capacity is larger in Alicante than in the origin country it exerts a stronger effect on housing prices. Retiree migration flow has permanent effect on housing market prices.
Practical implications
Results indicate several ways to act on social and housing policies in specific cities in Alicante province, as well as in the origin countries, to alleviate potential disadvantages faced by expatriate retirees.
Originality/value
This paper finds evidence of the specific impact of international retiree migrants on the hosting housing market. This study is the first paper that can estimate the specific effect on housing prices from a flow of retiree migrants by country of origin.
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Peng Yew Wong, Woon-Weng Wong and Kwabena Mintah
The purpose of this paper is to validate and uncover the key determinants revolving around the Australian residential market downturn towards the 2020s.
Abstract
Purpose
The purpose of this paper is to validate and uncover the key determinants revolving around the Australian residential market downturn towards the 2020s.
Design/methodology/approach
Applying well-established time series econometric methods over a decade of data set provided by Australian Bureau of Statistics, Reserve Bank of Australia and Real Capital Analytics, the significant and emerging drivers impacting the Australian residential property market performance are explored.
Findings
Besides changes in the significant levels of some key traditional market drivers, housing market capital liquidity and cross-border investment fund were found to significantly impact the Australian residential property market between 2017 and 2019. The presence of some major positive economic conditions such as low interest rate, sustainable employment and population growth was perceived inadequate to uplift the Australian residential property market. The Australian housing market has performed negatively during this period mainly due to diminishing capital liquidity, excess housing supplies and retreating foreign investors.
Practical implications
A better understanding of the leading and emerging determinants of the residential property market will assist the policy makers to make sound decisions and effective policy changes based on the latest development in the Australian housing market. The results also provide a meaningful path for future property investments and investigations that explore country-specific effects through a comparative analysis.
Originality/value
The housing market determinants examined in this study revolve around the wider economic conditions in Australia that are not new. However, the coalesce analysis on the statistical results and the current housing market trends revealed some distinguishing characteristics and developments towards the 2020s Australian residential property market downturn.
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