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Article
Publication date: 29 May 2009

John M. Kagochi and Lesley M. Mace

The purpose of this paper is to analyze factors that determine the demand for single family houses in Alabama urbanized areas, commonly referred to as metropolitan…

Abstract

Purpose

The purpose of this paper is to analyze factors that determine the demand for single family houses in Alabama urbanized areas, commonly referred to as metropolitan statistical areas (MSAs).

Design/methodology/approach

This paper builds and estimates a housing demand model that incorporates both macroeconomic and housing‐related variables using a panel time series data for 1988‐2007. The study is different from past research, which mainly focuses on housing demand at the state or national level, by looking at the factors influencing demand for housing at the MSAs level.

Findings

The study finds that demand for new single family houses in Alabama MSAs is influenced by both national economic factors and local factors. Population growth and increased sale of existing houses increase demand for new single family houses in the MSAs. On the contrary, increased cost of building a new house, higher real mortgage interest rates and unemployment rates are found to reduce the demand for new houses.

Originality/value

This study is one of the few studies that focus on housing demand at the local level, particularly in the US housing market. Since demand for housing will always be local and therefore influenced mostly by local conditions, the result reveal unique dynamics that are specific to the MSAs.

Details

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

Keywords

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Article
Publication date: 27 May 2014

James E. Larsen and John P. Blair

The purpose of this study is to gauge and compare the impact of surface street traffic externalities on residential properties. Limited previous research indicates that…

Abstract

Purpose

The purpose of this study is to gauge and compare the impact of surface street traffic externalities on residential properties. Limited previous research indicates that negative externalities dominate for single-family houses. Our objective is to verify that this result applies to our sample, and to determine if the same result extends to multi-unit rental properties.

Design/methodology/approach

Hedonic regression is used to analyze data from 9,680 single-family house transactions and 455 multi-unit rental properties to measure the influence of surface street traffic on the price of the two property types.

Findings

Houses located adjacent to an arterial street sold at a 7.8 per cent discount, on average, compared to similar houses located on collector streets. Limiting the analysis to houses adjacent to an arterial street (where traffic counts were available), price and traffic count are negatively related. The results for multi-unit rental dwellings are dramatically different. Multi-unit properties adjacent to an arterial street sold at a 13.75 per cent premium compared to similar properties on collector streets, and when limiting the analysis to properties on arterial streets, no significant relationship was detected between price and traffic volume.

Originality/value

This is the first empirical study of the influence of surface street traffic on both single-family houses and multi-unit rental residential property. Evidence is provided that traffic externalities impact the two types of properties quite differently. To the extent that this result applies to other locations, the authors suggest planners may be able to use such information to reduce the negative effect of traffic externalities on residential property associated with changes that will increase traffic flow.

Details

International Journal of Housing Markets and Analysis, vol. 7 no. 2
Type: Research Article
ISSN: 1753-8270

Keywords

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Article
Publication date: 26 July 2019

Ameen Bin Mohanna and Ali Alqahtany

The purpose of this study is to identify the preferred characteristics of buyers of single-family homes in Saudi Arabia with an emphasis on the city of Dammam.

Abstract

Purpose

The purpose of this study is to identify the preferred characteristics of buyers of single-family homes in Saudi Arabia with an emphasis on the city of Dammam.

Design/methodology/approach

Data were collected using face-to-face structured interviews conducted from November 2016 to May 2017 with 177 owners of single-family homes that were purchased between 2010 and the first quarter of 2017.

Findings

The findings indicate that homes can be divided into three types: villas, detached duplexes and semi-detached duplexes. Also, more than three-quarters of the respondents purchased their homes through mortgages from either lenders or the government. It seems we find that the advantages of the detached duplex, particularly its privacy level, over other types of single-family homes induce homebuyers to choose this home type.

Originality/value

In this study, the authors analyze housing preferences among various segments of the Saudi society, in the city of Dammam, to understand the housing supply in Saudi Arabia. Only a few studies have investigated the preferences of homebuyers in Saudi Arabia. Below the authors provide a literature review, discuss data and methods and results, as well as provide concluding remarks.

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Article
Publication date: 7 November 2016

Florian Kajuth, Thomas A. Knetsch and Nicolas Pinkwart

With a view to the unconventional monetary policy measures implemented in the euro area in recent years, this study aims to investigate whether the recent house price…

Abstract

Purpose

With a view to the unconventional monetary policy measures implemented in the euro area in recent years, this study aims to investigate whether the recent house price increases in Germany are signals of an incipient overheating of the German housing market.

Design/methodology/approach

This paper presents a valuation measure for residential property based on a large and exhaustive regional panel data set for Germany. The fitted house prices from a panel regression at the district level, taking into account spatial spillovers, are taken as a measure of the fundamental equilibrium house prices, which can be aggregated for various regional subsets.

Findings

The estimation results suggest that apartment prices over the past years substantially exceeded the fundamental price suggested by the model, in particular in the big cities. Single-family houses appear to be markedly overvalued mainly in the cities. The low level of interest rates in recent years appears to have contributed to the emergence of misalignments.

Originality/value

Exploiting the variation across local housing markets, the estimation approach provides value-add for the estimation of house price valuation results in various regional subsets, as conventional time-series approaches to valuing property are subject to severe data limitations in the case of Germany.

Details

Journal of European Real Estate Research, vol. 9 no. 3
Type: Research Article
ISSN: 1753-9269

Keywords

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Article
Publication date: 17 October 2016

Antti Tapio Kurvinen and Tanja Tyvimaa

Even as many countries are facing changes in demographic profile and new types of senior housing developments are becoming more important, there is limited evidence for…

Abstract

Purpose

Even as many countries are facing changes in demographic profile and new types of senior housing developments are becoming more important, there is limited evidence for the development impact of a senior house on surrounding residential property values. The purpose of this paper is to address the void in knowledge, investigating the impact of senior house developments on apartment values in Tampere, Finland.

Design/methodology/approach

To specify valuation effects of proximate senior house development projects, advanced research design combining propensity score matching procedure and hedonic pricing models is used.

Findings

The results show that a senior house development has a significant positive impact on proximate residential property values within a 500 metre radius. The impact is found to be the highest in underdeveloped neighbourhoods. Nevertheless, in neighbourhoods where property values and demand for housing units are higher and senior house developments fall into the criteria of infill development, a premium is lower, but still statistically significant and notable in magnitude.

Research limitations/implications

This paper studies apartment values only in Tampere, Finland, and it is important to notice that local regulations and market conditions may have a notable impact on the outcomes from senior house developments.

Originality/value

This study is the first of its kind to address a number of empirical issues and provide with statistically significant evidence for positive impacts from senior house developments – encouraging investors and developers to build senior houses.

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Article
Publication date: 7 August 2017

Cecilia Enström-Öst, Bo Söderberg and Mats Wilhelmsson

This paper aims to examine tenure choice in the Swedish housing market with explicit consideration of households’ credit constraints in combination with age and ethnic background.

Abstract

Purpose

This paper aims to examine tenure choice in the Swedish housing market with explicit consideration of households’ credit constraints in combination with age and ethnic background.

Design/methodology/approach

Observations of some 940,000 households were used to analyse the Stockholm housing market in 2008, prior to the implementation of the mortgage cap. The tenure choice models were estimated using a two-stage instrument variable (IV) logit and probit model with ownership or renting as outcome.

Findings

The results suggest, as expected, that being financially restricted is negatively related to owning. In particular, financial restriction is more binding for young households and households with a foreign background than for other types of households. These two sub-groups are also known to have difficulties establishing themselves in the rental housing market, and are therefore specifically vulnerable to further financial constraints such as borrowing restrictions or amortization requirements.

Originality/value

The government in Sweden has become concerned with the rapid growth in household indebtedness. As a response, a 0.85 loan-to-value ratio mortgage cap was introduced in 2010. However, critics are concerned with the effects this may have on the possibility for certain households to purchase a dwelling.

Details

Journal of European Real Estate Research, vol. 10 no. 2
Type: Research Article
ISSN: 1753-9269

Keywords

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Article
Publication date: 4 April 2008

Mats Wilhelmsson

The aim of this study is to investigate why housing prices differ between regions, and to estimate the speed‐of‐adjustment.

Abstract

Purpose

The aim of this study is to investigate why housing prices differ between regions, and to estimate the speed‐of‐adjustment.

Design/methodology/approach

A variety of factors explains the differences in the prices of single‐family houses. Changes in disposable income over time and across regions as well as the cost of capital are important determinants. The model is based on a DiPasquale and Wheaton model where the developments of the house prices are a function of macroeconomic factors such as economic growth, changes in employment and interest rate. It is estimated on a two‐equation error correction model: first, the long‐run price equation and, second, a short‐run price model.

Findings

The estimates suggest that the speed‐of‐adjustment ranges from 16 to 78 per cent (around 50 per cent on average) depending on the region. In regions with a low population density, higher price adjustment rates are observed. Moreover, the speed‐of‐adjustment is higher in an upturn economy than in a downturn reflecting that negative housing stock adjustments is much slower than positive adjustments.

Originality/value

The main contribution is that the speed‐of‐adjustment to the long‐run equilibrium price for 21 regions is estimated instead of at a national level and, furthermore, cyclical asymmetry in responses is tested and such differences are found. It is estimated that the rate of adjustment to long‐run equilibrium price varies considerably between regions.

Details

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

Keywords

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Article
Publication date: 26 October 2010

Abukar Warsame, Mats Wilhelmsson and Lena Borg

The purpose of this paper is to explore the extent that interest subsidies have impacted on the total production of Swedish single‐ and multifamily houses. It also intends…

Abstract

Purpose

The purpose of this paper is to explore the extent that interest subsidies have impacted on the total production of Swedish single‐ and multifamily houses. It also intends to examine whether tenure neutrality provision of interest subsidy that subsidy policy advocates was maintained.

Design/methodology/approach

Using a multiple regression of two models, a balanced panel data from 1975 to 2006 that consist of various related construction cost variables of all regions of Sweden will be analyzed. Instrumental variable (IV) and seemingly unrelated regressions (SUR) will be utilized to examine the role of subsidy on housing production and tenure neutrality, respectively.

Findings

The results seem to indicate that a general subsidy is expected to be ineffective since it may increase the existing stocks of a low demand region but not the housing stocks of big regions where the demand is high. Moreover, a targeted subsidy may change the balance between different types of housings since lower construction costs due to the subsidy could favor the development of certain profitable housing types.

Originality/value

The paper tries to substantiate (empirically) the assertion that subsidy policies contributed both to the production of housing units in low demand regions and distortion of the preference of different tenures.

Details

Journal of European Real Estate Research, vol. 3 no. 3
Type: Research Article
ISSN: 1753-9269

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Article
Publication date: 13 February 2019

Arian Mahzouni

This paper aims to discuss the nexus between two societal (sub) systems of housing and energy supply to shed new light on the key institutional barriers to socio-technical…

Abstract

Purpose

This paper aims to discuss the nexus between two societal (sub) systems of housing and energy supply to shed new light on the key institutional barriers to socio-technical energy transition in the built environment. The key research question is to explore if and how key patterns of institutional elements associated with energy retrofit and energy supply are combined, co-evolved and played out in the housing system, leading to an alternative energy transition pathway in the built environment.

Design/methodology/approach

A comparative case study of residential buildings in the Swiss cities of Basel and Sion is conducted to map retrofitting policies and practices in a wide range of buildings (e.g. multi-family and single family) that each requires a particular constellation of institutions, actors and artefacts.

Findings

The key finding is that the regulative institutions support energy transition in each urban form/housing type. However, the co-evolution with normative and cultural-cognitive institutions does not play out very clearly in the housing system. One reason is that the norms and cultures are deeply rooted in the practices exercised by business community and households and therefore they need a longer time frame to adapt to a new regulation.

Research limitations/implications

The policies and actions to increase the rate of housing retrofit are discussed in the specific socio-political context of Switzerland. Therefore, the results of this study might not be applied in other contexts with different conditions, limiting the possibility for analytical generalization. The case study can generate only context-specific knowledge, which might be valuable only to cities with similar conditions. This paper addresses theoretical, methodological and policy challenges in scaling-up retrofit projects by taking a holistic and integrated approach to the systems of housing and energy supply.

Practical implications

It would have been necessary to find out how the introduction and enforcement of new energy policies and regulations (regulative institutions) have changed the norms and building practices (normative institutions) used by actors from housing industry and the attitudes and energy consumption behaviour of the households (cultural-cognitive institutions). Nevertheless, information about normative and cultural-cognitive institutions require more primary data in the form of interviews with organizations and households, respectively, which goes beyond the scope and resources of this study.

Originality/value

Insights from different strands of literature (institutions and sustainability transition) are combined to understand if and how retrofitting practices go along with other elements of urban sustainability including architectural, technical, socio-cultural and economic factors.

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Article
Publication date: 4 December 2017

Dustin C. Read and Drew Sanderford

The purpose of this paper is to examine the development of the Brightwalk community in Charlotte, North Carolina, to explore some of the tradeoffs municipalities make when…

Abstract

Purpose

The purpose of this paper is to examine the development of the Brightwalk community in Charlotte, North Carolina, to explore some of the tradeoffs municipalities make when engaging in public–private partnerships designed to support the production of mixed-income housing in urban neighborhoods.

Design/methodology/approach

The results of a gray literature review and a series of in-depth interviews conducted with real estate practitioners familiar with the transaction are presented to evaluate the impact of market forces on key investment decisions and project outcomes.

Findings

Public–private partnerships formed to support mixed-income housing development can serve as an effective means of revitalizing economically stagnant urban areas and improving the quality of the affordable housing stock, but they do not always provide members of the development team with an equally strong incentive to satisfy the unique demands of low-income populations or ensure they have a seat at the table when development decisions are made.

Originality/value

The originality of the research lies in its focus on a public–private partnership led by a non-profit organization to facilitate the redevelopment of a dilapidated market-rate apartment complex into a revitalized mixed-income community, which may help municipalities evaluate the pros and cons of participating in similar development transactions.

Details

Journal of Place Management and Development, vol. 10 no. 5
Type: Research Article
ISSN: 1753-8335

Keywords

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