How to Increase the Participation of Private Organizations in the Construction of Affordable Housing? Evidence from Hangzhou, China

Abstract

ABSTRACT The participation of private organizations in the construction of affordable housing is important to ensure a sustainable housing development. This paper uses structural equation modeling (SEM) to investigate the main determinants of private organizations’ participation in affordable housing in Hangzhou, China. Our results show that both internal factors (such as value identity, sense of responsibility, profit-seeking tendency, herd mentality, size of organization and knowledge, and experience) and external factors (such as legal system, project profit, policy incentive, financial support, and supporting facilities) significantly impact the participation of private organizations in the construction of affordable housing. Policy implications of these findings are discussed.