CONTRASTING EFFECTS OF OWNERSHIP INCENTIVES ON NEW AND SECOND-HAND HOUSING PRICES

Recently many studies have found that unemployment rate, housing price fluctuation and economic crisis would have an important influence on mental and physical health. Housing price has a significant impact on the economic and social development. Since the housing reform in 1998, the rapid development of the real estate industry has become an important factor driving China’s economic cycle fluctuations. However, some scholars have found that the continuing rise in housing price has brought about a series of social and economic problems, such as reducing consumption, income inequality and so on. Therefore, does the rising housing price affect the health and welfare in urban China?Theoretically, housing price will have an effect on the health in urban China by at least three underlying mechanisms. Firstly, it would bring a positive wealth effect to the health of local residents; Secondly, the rising housing price might raise housing purchase and rental costs, and have a negative effect on residents’ physical and mental health; Thirdly, housing price is also the signal of economic vitality, regional infrastructure and the public service system, it would bring down the uncertainty of future economic development and promote the health of residents. In this paper, we use the 2010−2014 wave of China Family Panel Studies（CFPS）to investigate the effect of housing price on health and the underlying mechanism in urban China.Further, we also find that housing price has a heterogeneous effect on health, which is consistent with a wealth effect, a slave effect, and economic development in the area. The positive effect of housing price on physical health is concentrated on those with two or more housing, larger housing, higher property value, without unmarried adult sons, high-income areas or first-tier cities. The negative effect of housing price on mental health is stronger for those with no housing, smaller housing, lower property value, low-income areas or non-first-tier cities. Finally, we analyze the influence path of housing price on health, and find that the rising housing price will significantly improve residents’ health care utilization, increase the probability of physical exercise, and reduce smoking and drinking behaviors.This paper tries to make some contributions in the following aspects: Firstly, in order to solve the endogenous problem caused by omitted variables and reverse causality, we use the province-fixed effect, year-fixed effect, and individual province-fixed effect. Secondly, we use a number of subjective and objective indicators to measure their mental and physical health to extend the connotation of health. Thirdly, we compare the results of multiple groups, finding that housing price has different effects on the health of residents with different characteristics, and verify the three mechanisms of housing price to health. Fourthly, we also investigate the influence path of housing price on physical health, finding that the promoting effect of housing price on physical health can be attributed to the increase of regular exercise and medical utilization, and the decrease of smoking and drinking behaviors.

ABSTRACTThis is an empirical study on the effect of house price on stock market participation and its depths based on unique China Household Finance Survey (CHFS) data in 2011 and 2013 including 36,213 sample households. We mainly found that, with an increase of one thousand RMB per square meter in macrohouse price, the probability to participate in the stock market will increase by 5.4% before controlling for wealth effect and 2.84% afterwards, indicating the existence of wealth effect. The participation depths of the stock-total asset ratio are expected to decrease by 0.23%, and absolute stock asset is observed to decrease by 5.8 thousand RMB in response to one thousand RMB increase of per square meter house price. The effect of house price on participation decision is also related to housing area, and the negative effect of house price on stock market participation depths gets more intense with the increase of the stock-total asset ratio.

This paper examines the impact of unskilled (not college-educated) and skilled (college-educated) immigration on housing prices and rental prices. An instrumental variable approach is employed to investigate causal effects. Results show that an increase in unskilled immigration inflows may lead to a greater rental price appreciation, but an increase in skilled immigration inflows may lead to a lower rental price appreciation. Contrary to previous studies, this study finds that immigration inflows have little housing price effects.

This study examines the impact of housing price on the divorce rate in South Korea using a fixed effects model and dynamic panel data. There is currently a lack of consensus in the literature regarding the effect of house price on divorce. We simultaneously consider both house price and rental cost to distinguish a positive and negative effect of housing price. Using a cross-regional dataset of 15 provinces in South Korea from 1990 to 2013, we show that the wealth effect of house price changes on divorce rates is different from the effect of rental cost. All regression results indicate positive and statistically significant wealth effects of house price, but negative effects of the rental price changes on divorce rates.

This paper analyses the ‘ripple’ effect of house prices in large-, medium- and small-sized houses of five major metropolitan areas of South Africa—namely, Cape Town, Durban Unicity, Greater Johannesburg, Port Elizabeth/Uitenhage and Pretoria—based on available quarterly data covering the period of 1966:Q1 to 2010:Q1. Following the extant literature, the issue is contextualised as a unit root problem, with one expecting the ratios of metropolitan house price to national house price to exhibit stationarity to an underlying trend value, if there is diffusion in house prices. Using Bayesian and non-linear unit root tests, besides the standard linear tests of stationarity with and without structural break, overwhelming support is found for the existence of robust ripple effects. Also factor analysis conducted suggested that ripple effects originate in Cape Town for the large housing segment and in Durban for the medium- and small-sized houses.

Based on China 35 large and medium city' panel data from 1998 to 2006, this paper employs panel data Granger causality test and error correction to explore the relationship between land price and housing price. The results are: (1) land price and housing price have mutual causal relationship and feedback mechanism; (2) land price and housing price have equilibrium relationship in a long term but are unbalanced in a short run with weak disequilibrium correct mechanism; (3) the effects of land price on housing price and the effects of housing price on land price have significant regional difference, which significant in east region but not significant in middle and west regions. The conclusions are: (1) macro control of land price and housing price should be implemented simultaneously; (2) measures of controlling land price and housing price is necessary and feasible to correct land price and housing price's disequilibrium; (3) the government should make regional different land price and housing price macro control policy, the timing and strength of which in east region should be different to middle and west area in China.

ABSTRACTWe investigate the effect of higher house prices or rental costs on family size. We provide a static model of a household's choice of family size assuming constant elasticity of substitution preferences between children, leisure, and other goods, and Cobb–Douglas household production of children using parental time and housing. We then explore the wealth and substitution effects that changing house prices or rental costs have on desired family size. Renters are predicted to have fewer children in response to higher rents. Home owners are predicted to have more children in response to higher house prices only if they have sufficient initial housing and low substitution between family size and other consumption, and fewer children otherwise. Finally, we provide exploratory correlations between the change in lagged house prices or rental costs and the change in number of children born to women using aggregated census units in New Zealand. We find weak negative correlations in both cases.

Scientific measurement of the appreciation effect of house prices after the installation of elevators in old residential areas would help build a reasonable urban renewal investment mechanism. Based on the transaction data of second‐hand houses in old residential areas with elevators installed in Beijing from 2016 to 2021, a multiperiod DID model is constructed to measure the appreciation effect, dynamic effect, and heterogeneity effect brought by the installation of elevators and to explore the mechanism of the appreciation effect. The research results show that, overall, the installation of elevators boosts the house prices of the entire community, and the appreciation effect appears in advance due to good market expectations. However, the effect of house prices varies by floor. The higher the floor, the greater the appreciation of house prices, while low‐rise residential buildings are depreciated by the installation of elevators. Mechanistic research shows that the appreciation of house prices on high floors is mainly due to the improvement in the living environment, and factors such as noise and poor lighting lead to depreciation on lower floors. The results of quantile regression analysis show that the appreciation effect brought by the installation of elevators increases with the increase in the residential value.

This study identifies the health effect of rising housing prices on individual physical health using the Chinese General Social Survey (CGSS) data. Exploiting exogenous housing prices, I find that rising housing prices adversely affect physical health status. Heterogeneity analyses yield interesting findings. First, the adverse effects of high housing prices are pronounced in the group owning only one house. Second, significant effects of housing prices on health for the group aged 20 to 45 are observed, with no effects for the elderly group above 45. Third, males are more sensitive to high housing prices due to the intensified competition and traditional gender norm in marriage markets. I also further investigate the channel through which housing prices affect individual physical health. The findings indicate that rising housing prices can damage individual physical health via lowering social status, reducing physical exercise time and increasing mental health risk.

Cleaning up brownfields such as Superfund sites is expected to catalyze neighborhood change in the vicinity. Several previous studies have estimated changes in housing prices associated with Superfund sites, with mixed results. This paper provides new estimates of price effects associated with cleanups of these brownfields and assesses alternative explanations for previous results. Issues such as stigma, sorting and Tiebout bias, and housing supply conditions motivate the analysis. Prominent models of housing market responses to brownfield cleanups (e.g., Greenstone and Gallagher 2008) raise important issues of how timing and location are handled in the research design. This analysis shows the sensitivity of results to alternative specifications using different (and arguably more robust) definitions of neighborhoods and different milestones in the cleanup process. Housing price effects are estimated using first-differenced models with Census data aggregated at the block-group level for all metro areas in the nation (from 1990 to 2000). The remediation treatment variable is defined based on three different phases in Superfund cleanup process, and proximity is defined based on alternative spatial proximity measures. An instrumental variables estimator, where lagged geographic and political factors instrument for Superfund site cleanups is used. The results show substantial policy endogeneity and significant variation across alternative proximity definitions, as expected. The variation in results by cleanup phase offer insights into the timing of market responses to amenity improvements. The initial results show a generally positive causal impact of progress towards cleaning up Superfund sites, although completion of the high-visibility “construction” phase attenuates some of that positive effect. The presence of significant indirect price effects would suggest that Superfund site cleanups can trigger changes in other aspects of the neighborhood – transforming the composition of the housing stock and neighbor mix in the area. Our results point to a small indirect effect of improved environmental quality, indicating that these brownfield cleanups catalyze minimal neighborhood change. Thus, policy endogeneity, timing, and spatial definitions matter greatly to identifying price impacts of brownfield cleanups. Transforming neighborhoods more generally, however, does not appear to play an important role in brownfield redevelopment.

The novelty of this paper is to ascertain a nonlinear relationship between housing supply and house price. This study is conducted based on panel dataset of four different types of houses in Malaysia from 2002Q3 through 2016Q4. Although housing supply has been theoretically assumed to be positively and linearly related to house price, we observed that the number of new houses build in Malaysia has declined despite the increasing house prices. Hence, we posit that housing supply and house price are nonlinearly related. The results from pooled mean group estimation show the existence of inverted U-shaped housing supply curve. The threshold level of house price index is found at 186.92 where the effect of house price on housing starts will become negative after this point. We also find that the marginal effects of house price evaluated at the minimum and maximum levels are positive and negative, respectively, and statistically significant. This paper suggests that the squared term of house price should be included in estimating housing supply in Malaysia. The evidence of inverted U-shaped housing supply curve in Malaysia shows that housing authorities have taken steps to overcome the challenges of oversupply by reducing the approvals for housing development projects.

Fertility and female wages: A new link via house prices

This study examined the relationship between house prices and the business cycle. Specifically, we examined the effect of house price and stock price in the French business cycle. After presenting the transmission channels from house price to the business cycle, we analyzed the cyclical properties of house prices and compared them with the Gross Domestic Product (GDP) cycle. The question arises: are fluctuations in economic activity more sensitive to a real estate price shock (property wealth effect) or a stock price shock (stock market wealth effect)? We collected the data over the 1980Q1-2015Q4 period and investigated the effects of house price and stock price shocks on French GDP by employing the Structural VAR model. We found the evidence that house price strongly affects the GDP cycle. Indeed, their response is significantly more important than the stock price, suggesting that the housing market might contribute to the persistent propagation of the shocks hitting the economic system. The study has important implications for both academia and policymakers and offers new insights into the French experience.JEL Codes - A10; B4

This study examined the price spillover effect of housing submarkets in cities in the Seoul metropolitan area in South Korea by using the Granger causality test and vector autoregressive model (VAR). We found that housing prices showed a higher spillover effect within regions with similar housing market characteristics. Additionally, the spatial spillover of housing prices revealed a difference between sales price and jeonse price. The spillover of jeonse price was characterized by mutual influence among neighboring cities, while that of sales price was characterized by the influence being transferred in one direction hierarchically. Furthermore, the effects of housing price indicated a slight difference between sales price and jeonse price. Although jeonse price was mainly affected by a neighboring area (geographic boundary), sales price was more influenced by the city with the highest housing prices. Lastly, the housing price spillover tended to be expansive around the city with the highest price. These results suggest that housing price policies targeting specific regions or areas in Korea must be differentiated according to the type of occupancy (jeonse or sales), and it is essential to consider the externalities when promoting policies in the housing market wherein externalities may be significant.

Residential property market in Kampala has experienced significant growth over the past years with house prices rising exponentially. As economic theory has explained, house price movements is inherent with the regional economics and regional demographics such as income, cost of capital, population change…However increasing house prices could lead to lack of shelter to the individuals renting to some extent. Under any circumstance, the need for housing as a basic necessity persists. The research was intended to analyze house price with regard to affordability in the residential rental housing of Kampala. Single family units as opposed to condominiums were examined. The study draws from the 30/40 rule of housing affordability and the hedonic regression approach of house prices and examine whether the income of individuals in Kampala spent on rent has an effect on the affordability. A sample of 384 respondents was interviewed using closed ended questionnaires in the five division of Kampala and exploratory, cross sectional and quantitative research designs were adopted in this study. The data was collected through five point scale questionnaire, coded using Epi data and analyzed using SPSS. Regression and correlation tests were also run to establish the relationship and impact of independent variable on the dependant variable.