Home Buyers Research Articles

Barriers to Homeownership Among Young People in Australia: Unpacking Competing Hypotheses

ABSTRACTThe homeownership prospects of young people are declining globally. There have been widespread public concerns regarding barriers posed by unaffordable housing markets and tighter borrowing constraints, but equally a recognition that parental assistance can overcome these constraints. At the same time, public commentary often suggests that young people exhibit behaviours that are not conducive to saving for home purchase. This paper tests the relative importance of competing hypotheses regarding the barriers to homeownership among young people using the Household, Income and Labour Dynamics in Australia Survey. We find strong evidence that affordability constraints in the form of unaffordable housing markets and binding borrowing constraints are key barriers to homeownership. These constraints can be mitigated in the presence of intergenerational support as receipt of parental transfers in excess of AU$5000 quadruples the odds of achieving ownership. Poor saving habits, short‐term financial planning and labour market precarities have negative impacts on homeownership prospects, but they are relatively less important drivers of homeownership attainment than affordability constraints and parental transfers.

Uncovering neighborhood-level portfolios of corporate single-family rental holdings and community wealth loss

ABSTRACT The rise of corporate investors in the single-family rental (SFR) housing market has raised concerns about impacts on American home equity and wealth, particularly in markets like Atlanta, Georgia, a prime target for these businesses. This study introduces a novel framework that analyzes corporate SFR business activities—home purchase, rental, and sale—to assess their community-level wealth impacts. First, we test our core assumption that corporations have unique bargaining power over individuals in the market. Our hedonic regressions show that corporate investors purchase single-family properties for less and sell for more, when transacting with an individual buyer or seller, compared to individual-to-individual transactions. We then apply our framework, using Atlanta as a case study, to investigate the community wealth impacts of corporate SFR investors. We uncover that the City of Atlanta lost $1.25 billion (2022 dollars) between 2011 and 2021, with predominantly African American neighborhoods bearing more than half of the total loss. The most affected neighborhood suffered a loss proportional to nearly 4% of the total income generated by all of its households. This research has critical implications for those seeking place-based interventions by understanding past, present, and future impacts of corporate SFR investment activities on local housing equity and neighborhood wealth.

Optimizing Information Accessibility and Ease of Mortgage Application: Its Impact on Simple Home Purchase Decisions

Buying a simple house is often influenced by various factors, including the accessibility of information and the ease of applying for a Home Ownership Loan (KPR). This study aims to analyze the influence of Information Accessibility and Ease of Mortgage Application through marketing strategies on Simple House Purchase Decisions in Balikpapan City. The study used a quantitative method with a survey approach to 200 selected respondents using the purposive sampling technique. The data was analyzed using Structural Equation Modeling (SEM) assisted by Smart-PLS software. The results showed that Information Accessibility had a significant influence on Simple Home Purchase Decisions (path coefficient 0.630; T-statistic 6,023; p-value 0.000) and for the Ease of Mortgage Application (line coefficient 0.805; T-statistic 22,845; p-value 0.000). The ease of applying for a mortgage also has a significant effect on the Decision to Purchase a Simple House (line coefficient 0.234; T-statistic 1,928; p-value 0.049). An R-square value of 0.618 shows that the research model is able to explain 61.8% of the variability of purchase decisions. These findings underscore the importance of a digital-based marketing strategy that focuses on information transparency and simplifying administrative processes to improve consumer purchasing decisions.

Influence of Locational and Marketing Factors on Home-Buyer Behavior in the Housing Sector of Islamabad, Pakistan

Home purchasing is a multifaceted decision representing the largest investment an individual can make, carrying significant financial risk. Real estate sellers or agents often provide information that creates a gap between buyers’ expectations and the actual product, leading to post-purchase regret. This study aims to identify factors affecting home-buying and regret levels. Indicators were extracted and categorized as locational and marketing factors that influence consumer behavior and help them make informed decisions. Data from 450 households in Islamabad, Pakistan, were collected and analyzed using ordinal regression analysis. The results revealed that proximity to work, distance from the city center, educational institutions, highways, public transport, healthcare facilities, and parks, concerns related to safety and security, drainage system availability, brand name/developer reputation, and marketing efforts through celebrities, TV channels, and the internet, were influential in reducing regret levels associated with home-buying decisions. This study helps policymakers, developers, and individuals make the impacting factors mandatory in regulatory approvals and amend land use regulations for sustainable housing. This can ultimately reduce the likelihood of post-purchase regret.

Rebound Effects as an Obstacle to Sustainable Housing Goals: How Green Features Lead to Larger‐Sized Homes

ABSTRACTGlobal resource use and emissions continue to rise despite the widespread adoption of more energy‐efficient products and technologies. The current research addresses this green paradox by examining how the availability of rooftop solar panels and other energy‐saving green features leads to rebound effects that inadvertently increase the popularity of physically larger and more resource‐intensive homes. A conjoint analysis‐based survey of US home buyers is utilized to determine the presence of income and moral licensing‐based rebound effects, which together are predicted to increase buyer preference for larger homes. As expected, the findings show a shift in buyer preference towards larger homes due to significant income and moral licensing‐based rebound effects created by the availability of energy‐saving/guilt‐reducing green features. The conjoint analysis results are then utilized in conjunction with home construction‐sourced secondary data to estimate the economic and environmental implications of the larger home sizes. These estimates reveal that larger homes increase the financial attractiveness of green features for home builders and buyers, but at the cost of largely eliminating their environmental benefits. This suggests that efforts to achieve the widespread adoption of green features should focus on introducing them on physically larger products first when doing so makes the features more popular and profitable, because such popularity may create the potential for scale‐based cost reductions that could lead to their wider adoption across all product sizes with consequent environmental benefits.

Location, Quality, and Price Drive Home Purchases in Indonesia

This study examines the influence of location, product quality, and price on purchasing decisions at Graha Candi Pratama housing in Indonesia. Despite extensive research on housing purchase decisions, the unique contributions of these factors at Graha Candi Pratama have not been thoroughly explored. A quantitative approach was employed, sampling 96 homeowners via questionnaires, with data analyzed using SPSS 25. Results indicate that favorable location, high product quality, and affordable pricing significantly impact consumer decisions. Developers are advised to consider modern trends, cultural habits, and continually improve design and amenities while maintaining affordable pricing to attract buyers. Highlight: Location Impact: Proximity to amenities and transport influences purchase decisions. Product Quality: High-quality construction and variety increase buyer satisfaction. Price Affordability: Competitive pricing enhances housing project attractiveness. Keywoard: Housing purchase decision, location, product quality, price, consumer behavior

Like father, Like son? Intergenerational Transmission of Household Housing Preference: Evidence from China

Based on the cross-generational data of the China Family Panel Studies (CFPS) in 2010, 2014, 2018, this paper empirically explores the intergenerational transmission of household housing preference and its underlying mechanism from a perspective of intergenerational transmission. It finds that: (1) There is a distinct intergenerational transmission of housing preference. (2) For offspring under the age of 45, or those who are female, the intergenerational transmission of housing preferences from parents to their children is more pronounced. (3) Fertility intentions exhibit a resource dilution effect on the intergenerational transmission of housing preference. (4) The stronger the belief within a family that a child’s future success depends on the family’s economic status, the more likely it is to negatively influence the child's housing preferences. (5) Parents not only affect their children's consumption preferences regarding housing but also shape their attitudes towards borrowing for home purchases. This paper offers new insights into understanding household housing preference, and provides a foundation for government initiatives aimed at guiding households in rational asset allocation through social mechanisms.

Homeownership and Public Sector Employment: Evidence from the Removal of Home Purchase Restrictions in China

Homeownership and Public Sector Employment: Evidence from the Removal of Home Purchase Restrictions in China

Legal Protection for Homebuyers in Cases of Developer Default on Guarantees Issued Without Prior Notification (A Case Study of Bekasi District Court Decision Number: 239/Pdt.G/2020/PN Bks)

With the progression of time, the demand for housing has significantly increased, motivating various parties to develop businesses in the property sector, particularly in housing. However, in pursuing this business, developers sometimes fail to fulfill their obligations, as illustrated in the Bekasi District Court Decision Number 239/Pdt.G/2020/PN Bks. The purpose of this scientific article is to examine the legal protection available to home buyers against breach of contract by developers and to identify possible courses of action buyers can take to secure ownership rights from non-compliant developers. This article utilizes a normative juridical research method through legislative and case-based approaches. The issues addressed are the legal protections available for home buyers in cases of developer breach of contract and the remedies available to buyers for securing their ownership rights when developers fail to meet contractual obligations. The findings indicate that legal protection for home buyers can be based on the Consumer Protection Law and the Indonesian Civil Code. Buyers have several possible actions, such as demanding that developers fulfill their obligations as per the court ruling, seeking compensation for damages incurred, and reporting the issue to the Ministry of Public Works and Public Housing (PUPR), which has the authority to impose administrative sanctions on developers.

Beyond blueprints: unveiling sustainable housing ambitions – a TAM and EMGB fusion among paraprofessionals in urban construction landscape

PurposeThis study explores the factors influencing the investment intentions of potential home buyers among paraprofessionals in sustainable housing within urban construction. By combining the technology acceptance model (TAM) and the extended model of goal-directed behavior (EMGB), the research seeks to understand how technological perceptions, personal motivations and behavioral intentions intersect to shape these investment decisions.Design/methodology/approachA quantitative, cross-sectional and descriptive research design was employed in this study. The study surveyed 641 paraprofessionals as potential home buyers in various Indian cities using a multi-stage stratified sampling technique. It incorporated variables from the TAM and EMGB, modifying some aspects to include financial self-efficacy, hedonic motivation and anticipated regret, alongside adding location as a new factor to examine its impact. For data analysis, partial least squares structural equation modeling was utilized. The analysis focused on hypothesis testing to examine the relationships between the constructs of interest. Bootstrap t-values and effect sizes were used to assess these relationships’ significance and magnitude.FindingsThe study found that perceived usefulness and ease of use significantly enhance attitudes toward sustainable homes, while subjective norms have a minimal effect on such investments in India, emphasizing personal rather than societal influences. Financial self-efficacy, anticipated regret and hedonic motivation are key drivers, indicating that economic capacity and the pursuit of a satisfying lifestyle are crucial for investment intentions. Additionally, the importance of location is highlighted, with infrastructural aspects notably affecting sustainable housing appeal. These insights reveal unique dynamics in India’s sustainable housing sector, diverging from trends in developed countries.Originality/valueThe study lies in its unique fusion of the TAM and EMGB specifically tailored to the Indian urban construction context. It introduces financial self-efficacy, hedonic motivation and anticipated regret as novel variables within these frameworks, alongside emphasizing the significant role of location in sustainable housing decisions. This approach offers new insights into the psychological and socioeconomic factors driving sustainable housing investments in developing countries.

Impact of Asking Price Signals on House Buyer Behavior: Evidence from Ho Chi Minh City

This study explores how potential homebuyers in Ho Chi Minh City respond to critical market signals, particularly unusually low asking prices and extended listing durations. Using a three-step approach and survey data from 448 recent buyers of self-built homes between June 2017 and May 2018, the research provides new insights into buyer behavior in a rapidly growing but information-constrained housing market. Contrary to common belief, our findings reveal that houses listed at significantly below-market prices do not attract eager buyers but instead trigger skepticism, resulting in lower transaction prices and prolonged time on the market. Additionally, the Cox proportional hazards model highlights the crucial importance of the first 30 days of listing, where the probability of a sale is highest. As time passes, buyer suspicion increases, leading to a declining likelihood of sale and reinforcing the “stigma effect” of extended listing times. These findings challenge traditional pricing strategies and offer valuable implications for sellers and real estate agents navigating dynamic and competitive housing markets.

The rights and obligations of consumers, banks and developers in the home purchase agreement through the home ownership loan facility (STUDY PT.PILAR WAHANA SEJATI)

This study aims to (1) Examine and analyze the legal relationship between consumers and developers due to the Home Purchase Agreement. (2) reviewing and analyzing the legal protection of Home consumers due to the obligations of the developer due to the house sale and purchase agreement. The research method used is juridical normative by using conceptual (conceptual approach). Data analysis is done qualitatively by utilizing relevant positive theories and laws. Legal protection of consumers is regulated in law No. 8 of 1999 on consumer protection this law is expected to protect consumers in buying and selling homes through home ownership credit facilities. Based on the rules of law ,then in making the sale and purchase of houses must be made in the form of an authentic deed that is a deed that is made in the form specified by law and made before the competent public officials. Deed of sale and purchase under Article 617 of the Civil Code Kepmenpera number 09/1995 and PP24 / 1997, The Deed of sale and purchase must be signed by the seller and buyer in the presence of PPAT.

Discrimination Against Puerto Ricans in the Puerto Rican Housing Market: Evidence From a Preregistered Audit Experiment

AbstractDo locals discriminate against themselves by favoring foreigners with higher expected purchasing power? Drawing on theories of prejudice, discrimination, and colonialism, I argue that in colonized and post-colonial countries, local home sellers discriminate against local potential homebuyers while favoring foreigners with expected higher purchasing power, anticipating a more profitable transaction. I support this argument with evidence from a preregistered online audit study targeting discriminatory attitudes toward local home buyers. In the study, fictitious home buyers with distinctive language and ethnic names emailed 1,512 home sellers (realtors and homeowners) across all municipalities in Puerto Rico. Home sellers reported more houses available to Americans and invited them to more house showings than Puerto Ricans. My estimates indicate that ethnic discrimination exists in the Puerto Rican housing market. These findings provide new insights into ethnic dynamics in colonized and post-colonial societies and underscore concerns about recent legislation that turned Puerto Rico into a tax haven.

Patterns of supported home purchase in the United Kingdom

Housing markets are an important arena for the intergenerational transmission of (dis)advantage in advanced economies. In recent years, academics and policymakers have argued that homeownership is becoming a ‘family affair’ as home buyers become increasingly reliant on receiving financial and in-kind support from their relatives. This article develops our understanding of supported home purchases in Britain by examining the distribution and residential implications of receiving assistance to buy a home. The results show that support for home purchase is more widespread, varied and multichannelled than is often assumed. Receipt of support is also socially patterned as younger and more economically marginal buyers, as well as those in the tight London housing market, are disproportionately likely to purchase homes with assistance. Finally, although support generally has weak associations with the characteristics of housing purchases, drawing on an inheritance boosts the probability that those entering homeownership buy homes in more advantaged neighbourhoods. Receiving support also reduces the likelihood of heavier mortgage borrowing among moving owner-occupiers.

Analysis Of the Impact of China's Population Age Structure on Residential Commercial Housing Prices

With the intensification of global aging, the impact of changes in population age structure on the real estate market is becoming increasingly significant. This article aims to explore the impact of changes in China's population age structure on the prices of residential commercial housing, to provide a scientific basis for regulating the real estate market. By analyzing data from 30 provinces and cities in China from 2013 to 2022, this article finds that as aging population intensifies and the number of children decreases, both the old-age dependency ratio and the child-age dependency ratio have a negative impact on housing prices. This means that the aging society and the economic pressure of childcare may weaken the demand for home purchases. Household Saving Rate and increase in total population positively drive house prices, while the relationship between per capita income and house prices is not significant. From a regional perspective, the aging population in the eastern region has a significant effect on suppressing housing prices, while the impact is gradually evident in the central region. The western region has a smaller impact and population growth suppresses housing price increases. The study emphasizes the impact of changes in the age structure of the Chinese population on the prices of residential properties and proposes policy recommendations such as improving old-age security and optimizing the housing supply structure to promote the steady development of the real estate market.

Marriage entry, divorce and reconciliation: The unintended consequence of the home purchase restriction policy in China

This study investigates the unintended socioeconomic consequences of housing market regulations, focusing on the home purchase restriction (HPR) policy implemented in cities across China. While the primary aim of the HPR policy is to curb property prices by limiting the number of properties a household can purchase, its broader impact on family formation, particularly marriage and divorce patterns, remains underexplored. Applying Becker’s economic theory of marriage, which views marital decisions as rational choices influenced by socioeconomic factors, this study examines how the HPR policy affects family formation and dissolution across different city tiers and age groups in China. Our analysis reveals several key findings. First, the HPR policy effectively contributed to a decrease in house prices, aligning with its primary objective. However, it also led to delayed marriages among younger age groups, especially in first-tier cities, where housing affordability is a significant concern. Second, the policy inadvertently encouraged strategic divorces, allowing couples to circumvent purchase restrictions and acquire additional properties. This loophole undermines the policy’s effectiveness in reducing housing demand and stabilizing prices. These results highlight the complex interplay between housing market regulations and family demographics, emphasizing the need for policymakers to consider the broader societal impacts of non-family-oriented policies. As China, like many other societies, faces challenges related to the second demographic transition—such as declining marriage and fertility rates—the findings of this study serve as a cautionary tale. Housing policies, while effective in addressing market concerns, can have significant and sometimes counterproductive effects on family stability and formation, potentially exacerbating the demographic trends a society aims to mitigate.

The effect of soaring housing prices on the quality of export products: Evidence from China

AbstractThis paper examines the impact of rising housing prices on the quality of export products. When housing prices increase, the collateral value of firms can rise, easing financial constraints and potentially boosting investment in innovation and product quality. However, higher housing prices can also lead firms to divert investments from their core business operations to the housing sector, where returns are relatively higher. This diversion can negatively affect product quality. We empirically investigate this relationship using Chinese firm‐level data, matched with customs and city‐level data from 2000 to 2013. Our results show that during China's housing boom, rising housing prices significantly reduced the quality of export products. The negative impact of speculative investment in the housing sector outweighed the positive effects of eased credit constraints. Firms with real estate investments and industries with low external financial dependence were more affected by rising housing prices. Additionally, government restrictions on home purchases helped mitigate the negative impact of rising housing prices on export product quality.

The role of speculation on housing price disparities

This paper explores the impact of speculation on disparities in home purchase prices within neighborhoods. Using administrative data on residential real estate transactions in Singapore's private housing market, our analysis reveals that housing unit prices increase over time within a neighborhood in the presence of speculators. However, this pattern remains stable after the implementation of macroprudential policies aimed at deterring speculation. Our mechanism analysis indicates that while speculative sales contribute to the increase in the price of neighboring units over time, speculative purchases have negligible effects. These findings underscore the potential of macroprudential policies in mitigating speculation and promoting housing affordability.

Determinants of Intra-City Residential Migration Patterns of Older Adults: A GIS and Decision Tree Analysis of Yancheng City, China

This study investigates the spatial patterns of residential migration among older adults in the city center of Yancheng and the influencing factors using data on the home purchases of individuals aged 65 and older from 2016 to 2018, along with peripheral point of interest (POI) data, analyzed with ArcGIS and a decision tree model. The results indicated that persons aged 60–65 accounted for 42.8% of the total sample and primarily chose to migrate in the early stages of retirement. The intra-city migration of older adults exhibits both centripetal and centrifugal patterns, with a greater tendency toward the city center. House prices, floor levels, and commercial facilities significantly impact their choice of migration destinations. Among these, house prices were the most critical determinant, with the majority of older adults migrating to neighborhoods with lower house prices. This study contributes by integrating residential migration and location choice research and constructing an analytical framework based on facility accessibility. The findings provide insights into the key determinants of location choice for intra-city residential migration among older adults and the construction of livable neighborhoods for them.

Out‐of‐area home purchase and U.S. internal migration

AbstractThis study demonstrates that out‐of‐area (OOA) property transactions can serve as a proxy for migration. Using micro‐level transaction data, we document that about 35% of migrants make OOA property purchases. The goodness‐of‐fit between migration and OOA purchases is higher for aggregate migration measures and lower for migration flows between disaggregated areas. Furthermore, in most specifications, a one percent increase in OOA purchases is associated with an approximately one percent increase in migration. We characterize the monthly out‐migration from NYC zip codes to surrounding areas after the outbreak of the COVID‐19 pandemic to demonstrate the high temporal and spatial resolution of OOA transaction data.