Determinants Of Homeownership Research Articles

Determinants of Home Ownership Among the Urbanites in Melaka

Over the past few years, the real estate market has been unbalanced in terms of supply and demand when supply exceeds demand, especially in urban areas. Although there is a high demand for affordable housing, the issue of house dumping is still a public debate. The difficulty of owning a house has always been a public issue debated by the government and the private sector in finding a solution for all stakeholders. With the current economic situation, buying a house is almost impossible due to the drastic increase in house prices in urban areas. In reality, urban communities need affordable housing to overcome the problem of renting a house, where the cost of renting is increasing. This study aims to identify whether factors such as market price, socio-economics, and community well-being affect home ownership, especially in Melaka urban areas. Data and information were obtained from house renters in some selected housing estates. The data collected from questionnaires was analysed using Statistical Package for Social Science (SPSS) 23 and Microsoft Excel software. The regression analysis method was employed for this study. The study results found that the increase in house prices affects the residents' ownership in the city, even though the demand for houses is always there. Design factors, types, and comfortable spaces are still the choices of today's home buyers. Socio-economic development factors also affect the demand of urban communities that choose housing estates near the city because of easy access, available infrastructure, and stunning green surroundings. The community well-being factor is a determining factor in the urban community's choice of a community-friendly environment and guaranteed security as one of the factors of home ownership in the future. In general, this study also helps housing developers study marketing strategies by considering the current needs of urban communities, such as market prices, socio-economic development, and a community-friendly housing environment. This study suggests that the government should make more efforts to increase homeownership in the urban community by providing quality housing and creating a united society along with development.

Sociodemographic Characteristics Mediated by Poverty as Determinants of Homeownership in Indonesia.

This research focuses on homeownership status with antecedent variables of sociodemographic characteristics mediated by poverty, using panel data in 34 provinces in Indonesia during 2017-2023. This research uses a Path Analysis model with dummy variables, grouping regions into 2 groups, namely urban areas and rural areas. The research results show that GDP per capita and education have a significant negative effect on poverty both in urban and rural areas. Furthermore, family members and population density have a significant negative effect on poverty in both areas. Meanwhile, labor has no effect on poverty in the two regions as well as on homeownership in the city, but has a positive effect in rural areas. It was also found that male heads of household had a significant negative effect on poverty in urban areas but had no effect in rural areas, then poverty had a significant negative effect on house ownership in urban areas but had no effect in rural areas. Apart from that, education has no effect on homeownership in both urban and rural areas. Furthermore, homeownership is significantly influenced by population density and male head of household in rural areas but not significantly in urban areas.Increasing the ability to own a home can be done by alleviating poverty by providing cheap credit facilities to families who need a place to live. Furthermore, the government should pay attention to sociodemographic characteristicsin increasing people’s ability to own a home and it is hoped that there will be a follow-up with gender research on homeownership.

Do children increase the likelihood of homeownership? Evidence from a sample with twins

Abstract Homeownership status has a broad range of positive outcomes that accrue to both individuals and society. Although the determinants of homeownership have been studied in the past, there was little attention to the effect of family size. Using a twin birth as an exogenous change in the number of children, we examine the effect of increasing family size on the likelihood of owning a house. We found that having an additional child after the first birth increases the likelihood of homeownership approximately by 4.3%, but the impact faded out in subsequent births. In addition, family size is more likely to increase homeownership for less educated households and those who had first births at older ages.

Never married individuals and homeownership in urban China

PurposeDrawing on the literature regarding gender, marital status and homeownership, this paper aims to examine the role of gender and marital status played in homeownership in urban China. This paper also attempted to shed light on other determinants of homeownership as well as heterogeneity in the factors related to homeownership between never married women and never married men.Design/methodology/approachThis study uses data from the 2010 to 2015 China General Social Survey to investigate factors related to homeownership among urban Chinese households and focuses on the role of gender and marital status in particular. Multivariate analyses were applied to the full sample, never married sample, never married women sample and never married men sample respectively.FindingsFindings from this study on the full sample showed that never married individuals were less likely to be the homeowners compared to the married couples. The probability of homeownership of never married women was lower compared to the never married men cohort. Different personal characteristics contributed to homeownership between never married women and never married men cohort.Research limitations/implicationsThe empirical model in this study did not provide direct evidence that never married individuals were more likely to be homeowners as reflected in the recent mass media news. Further study could conduct a survey designed specifically for this group.Originality/valueThis study adds to current literature with further understanding of factors related to homeownership among Chinese households in general as well as in never married women and never married men subsamples.

지역별 자가주택 결정요인에 관한 연구 -정책요인 변수를 중심으로-

본 논문은 국토교통부의 2016년도 주거실태조사 자료를 사용하여 정책변수에 초점을 맞추어 지역별 자가주택 결정요인을 살펴보는 데 목적을 두고 있다. 이를 위해 광역시와 도지역 그리고 수도권과 비수도권지역을 구분하여 실증분석을 수행해 다음과 같은 분석 결과를 도출하였다.BR 먼저, 이항 로지스틱 다중회귀분석을 통해 광역시와 도지역 간에 자가주택 결정요인을 추정한 결과, 두 지역 모두 본 논문의 정책변수인 주거지원프로그램 필요성과 주거지원프로그램 이용현황변수가 자가 선택에 정(+)의 영향을 미치는 것으로 나타났다. 광역시의 경우, 연령, 상용직, 월소득, 총부채변수가 자가 선택에 통계적으로 유의한 정(+)의 영향을 미치는 것으로 나타난 반면, 가구원수와 임시·일용직 변수는 자가 선택에 통계적으로 유의한 부(-)의 영향을 미치는 것으로 나타났다.BR 다음으로, 비수도권과 수도권 거주 여부에 따라 자가주택 결정요인이 다를 수 있다는 판단 아래 이를 구분하여 추정한 결과, 정책변수인 주거지원프로그램 필요성과 주거지원프로그램 이용현황변수는 자가 선택에 유의한 정(+)의 영향을 미치는 것으로 나타났다. 수도권의 경우에는 연령, 결혼(6년 이상), 상용직, 월소득, 총부채변수가 통계적으로 유의한 정(+)의 영향을 미치는 것으로 나타난 반면, 가구원수, 교육수준, 임시·일용직변수는 자가주택 결정에 통계적으로 유의한 부(-)의 영향을 미치는 것으로 나타났다. 비수도권의 경우에는 성별, 연령, 월소득, 총부채변수는 통계적으로 유의한 정(+)의 영향을 미치는 것으로 나타난데 반해 가구원수, 임시·일용직변수는 통계적으로 유의한 부(-)의 영향을 미치는 것으로 나타났다.BR 이러한 본 논문의 실증분석 결과를 토대로 판단할 때, 한국의 주택정책이 주거안정과 삶의 질을 높이는 방향으로 나아가기 위해서는 주거지원프로그램이 대폭 확대될 필요가 있음을 알 수 있다. 아울러 그와 같은 주거지원프로그램을 정책을 펴는 과정에서 지역별로 상이하게 나타나는 자가주택 결정에 통계적으로 유의한 정(+)의 영향을 미치는 결정요인들을 동시에 고려할 필요가 있다.

Determinants of Homeownership among Immigrants

Determinants of Homeownership among Immigrants

Caste, Faith, Gender: Determinants of Homeownership in Urban India

Analyzing a large dataset of urban non-slum households, we find that homeownership tenure choice in India is significantly associated with gender, religion and caste. In particular, large households or those headed by women or with larger number of women are significantly more inclined towards homeownership than households of otherwise similar characteristics. Salaried households are the least and self-employed households the most likely to be homeowners. Compared to Hindus, Muslims show significantly lower while other minority religions (Sikhs, Buddhists and Jain combined) show significantly higher propensity towards homeownership after controlling for other factors. Castes which have been victims of discrimination show significantly higher propensity towards homeownership. The propensity towards homeownership in discriminated class households significantly increases when endowed with esteem or affluence.

Determinants of Homeownership among Immigrants: Changes during the Great Recession and Beyond

In this paper, we explore factors correlated with immigrant homeownership before and after the Great Recession. We focus solely on immigrants because of recent evidence that suggests homeownership rates declined less for immigrants than natives in the United States during the recession and onward. Specifically, we examine to what extent an immigrant's income, savings, length of stay in the destination country, citizenship status, and birthplace networks affected the probability of homeownership before the recession, and how these impacts on homeownership changed since the recession. We examine these questions using microdata for the years 2000–2012. Our results suggest that citizenship status, birthplace network, family size, savings, household income, and length of stay are significant for an immigrant's homeownership. In comparing the pre‐recession period to the period afterward, we find that the impact of birthplace networks on homeownership probabilities doubled while the impact of savings slightly declined.

The Impact of Home Ownership on Life Satisfaction in Urban China: A Propensity Score Matching Analysis

China has implemented a series of socioeconomic reforms since 1978. One of the reforms allows urban residents to purchase their own houses rather than renting houses from state institutions which has resulted in a rapid increase in home ownership. This paper estimates the impact of home ownership on life satisfaction in urban China on the basis of the 2010 wave of the China General Social Survey. Special attention is paid to the methodological problem of confoundedness between the determinants of home ownership and life satisfaction. Propensity score matching (PSM) is applied to control it. The results show that PSM reduces upward estimation bias caused by confoundedness and that it is more appropriate to control confoundedness than ordered probit regression. The estimates furthermore indicate that home ownership has a significant positive impact on life satisfaction of medium- and high income urban residents. For low income urban residents, the impact is also positive, though insignificant. The outcomes connect to the objectives of national development policy and thus have several important policy implications. First, the central and local governments, especially in provinces where it is still low, may want to continue stimulating home ownership as it enhances life satisfaction. Secondly, specific programs may be designed to make home ownership financially affordable for low income groups. Thirdly, local governments may want to initiate or intensify urban (renewal) programs to improve poor public facilities including public transportation, green space and sports accommodations in the immediate vicinity of depressing low income neighborhoods.

Determinants of immigrants’ entry to homeownership in three nordic capital city regions

The extent of homeownership among immigrants may be seen as an indicator of integration and as a determinant of ethnic residential segregation. Studies have shown differences in the determinants of homeownership between immigrants and natives, indicating that variation in homeownership is not only a function of differences in economic resources. These studies have largely focused on Anglo‐American contexts, using mostly cross‐sectional data. We apply survival analysis methods to analyse the determinants of entry to homeownership in the capital regions of three Nordic countries – Denmark, Finland and Sweden – utilizing longitudinal individual‐level register‐based datasets. We find that differences in entry to homeownership between natives and different immigrant groups cannot be explained by differences in socio‐economic background factors. We also find differences in the effects of these factors. Effects of income are generally weaker among non‐Western immigrants and immigrants are less responsive to changes in household composition. The share of non‐Western immigrants in the neighbourhood is only weakly related to entry to homeownership, while immigrants and natives living in public rental housing tend to be slightly less inclined to move to homeownership. Weaker income effects among immigrants, weak effects of ethnic segregation and the importance of the public rental sector differentiate our results from earlier findings. Weaker income effects may indicate that uncertainty about the future also affects middle‐income immigrants. Differences between the three contexts in housing markets and policies do not seem to matter much, although the results indicate that difficult access to the private rental sector may push immigrants to homeownership.

Small Area Variation in Homeownership

The aim of the study is two-fold. First, it adds to the existing state-of-the-art housing research by suggesting the implementation of new econometric methodology. Specifically, the study adds to earlier studies of homeownership by adding spatial impacts. It advocates simultaneous adjustment for intra-municipal correlation and heterogeneity as well as spatial spillover patterns between municipalities. It concludes that ignorance of controlling for intra-municipal correlation, heterogeneity and spatial spillover skews conclusions regarding effects of the determinants of homeownership. Furthermore, it finds that endogenous as well as exogenous spatial spillovers are essential parts of specifying demand for homeownership. Specifically, the demand for homeownership spills over and stimulates demand in neighbouring municipalities, and house prices and incomes exert positive effects on demand for homeownership in neighbouring municipalities. Second, as is clear from the above empirical conclusions, the study adds to existing empirical research and knowledge.

Female Headed Households and Homeownership in Latin America

The gender of the household head has often been treated as an exogenous determinant of housing tenure. The paper argues that several determinants of homeownership also affect household headship and that failing to explicitly account for this endogeneity leads to inconsistent results. Using individual level data for Chile, Honduras and Nicaragua, it is shown that although on average women have a lower probability of being homeowners, those women that head their families (single, separated or divorced) have higher probabilities of attaining homeownership. Thus household level analysis should control for the endogeneity of household headship in order to properly address the gender effect on housing tenure. The paper estimates a recursive bivariate probit model and finds evidence that, all else equal, female headed families have a lower probability of owning their home in 13 out of 17 Latin American countries. Without the endogeneity control this result was not present in 12 countries.

Housing Adjustment Among Immigrants in Israel: Application of Complementary Non-Metric and Metric Techniques

This study applies two different complementary statistical techniques to examine the structure and determinants of homeownership and consumption of household goods among immigrants in Israel. Findings from partial-order analysis (POSAC) reveal significant differences between immigrant groups by type, rather than level, of household characteristics. Suppliers of entertainment (television) and of information-communication (computer) are the items that most strongly distinguish between immigrants. The joint direction of the partially ordered space corresponds with home and car ownership. Immigrant groups are dispersed in different parts of the household typology; with increased duration of residence in Israel immigrants move, albeit in varied rhythms, toward improved housing conditions. A complementary logistic regression analysis, which controls for socio-demographic variation and detailed tenure in Israel, show a likelihood of convergence of immigrants from all origin countries with the core native-born group in owning a home. For other household goods, the findings largely coincide with the typology derived from POSAC. The findings are discussed in reference to three conceptual expectations of “cultural norms”, “adjustment”, and “structural-environmental considerations”.

Determinants of homeownership in Malaysia

The housing industry is crucial to sustainable development in Malaysia. The efficiency and effectiveness of the housing delivery system require housing provision for all. The housing industry, which had grown rapidly in the 1980s, encountered property oversupply recently. The majority of these units remain unsold for reasons beyond the price factor, ranging from poor location to unattractive houses. The main objective of this paper is to tackle property oversupply in the country by examining a detailed knowledge of home owning determinants. Homeownership should be encouraged as positive externalities of homeownership can be found in many housing surveys. Homeownership is a complex issue that is the result of many determinants, including housing characteristics (house types and property types), employment and income trends, and socio-cultural and demographic descriptors. In addition to determinants, efforts are needed to reduce regulatory barriers in the housing delivery system, which can significantly increase the cost of building houses. The government should make home financing more available and affordable by providing subsidies to low-income families and by creating incentives to save for homeownership. Efforts are also needed to extend opportunities to enhance the affordability of homeownership by liberalizing rules and regulations of Employee Provident Fund (EPF) withdrawal.

The Role of Interest Rates in Influencing Long-Run Homeownership Rates

As a stated policy objective, the U.S. Department of Housing and Urban Development (HUD) seeks to boost the national homeownership rate to 70 percent by 2006. To accomplish this goal, they estimate that 3.8 million additional families be added to the ranks of U.S. homeowners. Furthermore, HUD estimates that the homeownership gap between minority and nonminority families must be reduced by a full 15 percent. Many policy instruments—both targeted and otherwise—have been suggested to increase homeownership. These range from low downpayment loans, greater access to credit in underserved areas, and interest rates subsidies. However, little is know about the efficacy of these measures to raise long-term homeownership rates. In this analysis, we focus on the role of interest rates on homeownership rates and the housing stock. In particular, we provide a critical review of the literature on the relationship between housing and interest rates in contrast to other determinants of homeownership and changes in housing supply. We then present our own estimates of the influence of interest rates on homeownership and housing starts. We find that interest rates play little direct role in changing homeownership rates. While changes in interest rates may affect the timing of changes in tenure status from renter to owner, the long-run ownership rate appears independent of interest rates. We find housing starts are, however, sensitive to changes in the interest rate. This implies that housing supply, or at least the timing of changes in housing supply, is sensitive to interest rates. It is though this mechanism that the stock of owner-occupied housing expands, though household formation and immigration may leave the ownership rate unchanged. We conclude by discussing whether other instruments, such as low down payment loans and improved technology for assessment of credit risk, may potentially be better suited to increasing long-term homeownership rates.

Determinants of home-ownership in Kumasi, Ghana

Geografisk Tidsskrift, Danish Journal of Geography 99: 81–88, 1999 This paper reports the results of an empirical analysis of homeownership determinants that makes use of household level data from Kumasi, Ghana. Among the variables investigated, permanent income, represented by household expenditure was the most critical factor influencing the probability of owning a home in Kumasi. Other significant, relevant factors, that reflected the study's a priori expectations, included age and mobility level of the household head. The type of occupation as hypothesised in the study was, however, at variance with the study results indicating the continued importance of cocoa farmers in the city's housing market. It is hoped that the results emanating from the study could be extrapolated to other urban settlements with similar characteristics in sub-Saharan Africa.

Race and Life-Cycle Effects on Home Ownership in Los Angeles 1970 to 1980

To better understand the significance of employing group-specific data versus aggregate information in assessing the impacts of housing policies, we use multivariate regression analysis to examine the determinants of home ownership and to isolate the source of observed racial differences for black married couples and white married couples in the Los Angeles metropolitan area in 1970 and 1980. The results indicate (1) a systematic racial difference in life-cycle stage that effects home ownership, (2) a much lower probability of blacks becoming homeowners, and, worse, (3) a possible widening of the black/white home ownership gap. Discrimination is posited as the most likely explanation for continued blocked access to home ownership for blacks.

The Demand for Housing in Developing Countries: Empirical Estimates from Household Data

Cities in developing countries are growing at extraordinary rates, often compressing into decades the urbanization process that has taken centuries in developed countries. In coping with this growth, public authorities have devised a wide range of policy instruments to influence the rate and character of city expansion, to meet the needs of people for shelter and urban services, and to allocate resources in ways that redistribute both the costs and benefits of urban growth. Ideally, such policy formulation should be informed by a careful understanding of the behavior of urban markets; in fact, little information on market behavior is available to the policymakers of developing countries. Such basic information is needed for improved project design and, even more important, for improved sector-wide policies. This paper reports on research conducted at the World Bank to increase understanding of developing country housing markets; in particular, of housing-demand behavior. While the overall project examines both the demand for housing characteristics' and the demand for housing as a composite good, this paper addresses only the latter. The objectives of this paper are (1) to review briefly previous evidence on housing-demand parameters in developing countries; (2) to present new evidence on housing-demand parameters based on application of standardized models and comparable variable definitions in 16 cities in eight developing countries (Colombia, Egypt, El Salvador, Ghana, India, Jamaica, Korea, and the Philippines); and (3) to examine similarities and differences among cities in housing demand and, in a preliminary way, offer explanations for place-to-place differences. Limited comparisons are also made to two U.S. cities in order to begin comparison of developing and developed country market behavior.

An economic analysis of the homeownership decision

Analysts of the homeownership decision have traditionally asserted that “owning makes much greater sense than renting” ([16], p. 359) for families in high tax brackets. However, empirical studies of homeownership propensities indicate that not all high-income families own nor do all low-income families rent. For example, Li ([8], p. 1081) notes that “a large number of studies” find that a variety of variables, such as “family size, age of the head, and race are generally found to be.. . determinants of homeownership” even when income or the marginal tax bracket are held constant. Previous attempts to explain why the marginal tax bracket is not a sufficient statistic for homeownership argue that people differ in their preferences for homeownership either because owning and renting are not perfect substitutes in consumption (see, for example [13, 141) or because of differences “in liquidity, mobility, ability at home repairs and home management, and simply peculiar circumstances” ([4], p. 14). This paper develops a general model of the homeownership decision and explores two alternative explanations of why the marginal tax bracket is not a sufficient statistic. This is accomplished by incorporating both transaction costs and housing market quality sorting into the model. Section II derives a simple parametric statement of the homeownership decision. The third section examines the special case which yields a homeownership decision rule which is comparable to existing models. An alternative special case is presented in the fourth section which incorporates consumer sorting across quality markets. It is demonstrated that the housing market may adjust until

Determinants of Homeownership: A Comparison of Single Female and Single Male Headed Households

Data from the 1976 Annual Housing Survey were analyzed to compare households headed by single females and single males. Using separate probit analysis for males and females, a model tested the relationship of socio-demographic, economic, and location variables to homeownership rates. Age of household head, household size, presence of elderly and presence of school age children influenced ownership rates for males and females. Marital status influenced ownership for females but not males. Current income was positively related while welfare income was negatively related. Permanent income had a positive influence on ownership for males. Possible reasons for differences in ownership rates are discussed.