Higher Housing Prices Research Articles

The Impact of Regional Socio-Economic Policy on Housing Accessibility for Different Population Groups

The article examines the impact of regional socio-economic policy on housing accessibility for various population groups. It analyzes how economic, social, and political factors shape housing conditions in different regions. Special attention is given to how high housing prices and a shortage of affordable housing options affect the quality of life and social mobility of the population, as well as the vulnerability of specific social groups such as young families, low-income individuals, and retirees. The consequences of limited housing accessibility, including increased social tension and inequality, are discussed. Recommendations for improving regional policy are provided, with an emphasis on the need for a comprehensive approach to achieve sustainable improvements in housing conditions.

Affecters on Housing Prices: An Initial Review in Malaysia

This research delves into the intricate dynamics of the Malaysian housing market. Due to the issue of constantly high and expensive house prices, the study aims to integrate the possible macroeconomic causes as well as the integrity issue by focusing on three vital independent variables: Gross Domestic Product (GDP), Foreign Direct Investment (FDI), and Corruption Index (CRP). The research uses quantitative methods, the Ordinary Least Squares (OLS), to reveal nuanced correlations between these economic variables and house prices in Malaysia. The intriguing findings show that both FDI and CRP significantly influence house prices positively, aligning with existing literature. However, the unexpectedly insignificant correlation between GDP and house prices suggests a potential gap in understanding, adding a layer of intrigue to the research. These results and significant findings offer valuable insights for decision-makers and emphasize the importance of ongoing research to better grasp the complex factors shaping housing markets in different economic situations.

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.

Understanding Spatial Agglomeration: Increasing Returns, Land, and Transportation Costs

Economic activities are concentrated on a small share of inhabitable land. In our view, this agglomeration is the outcome of a trade-off between increasing returns and transportation costs, which capitalizes into land rents. Our second baseline idea is that Tiebout-like sorting provides a general framework to handle a large array of problems in spatial economics. Cities have high housing prices because they are productive and offer high levels of amenities and public goods. Both production and amenity effects capitalize in the land rent at a particular location. Through the process of bidding for land, spatial sorting is the involuntary consequence of a myriad of individual decisions made by agents who pursue their own interests.

Important Facts, Reasons, and Explanations of the China’s Real Estate Market: The Perspectives of High Housing Prices and Investment

Important Facts, Reasons, and Explanations of the China’s Real Estate Market: The Perspectives of High Housing Prices and Investment

Do high housing prices inhibit entrepreneurial activity?—Evidence from Yangtze River Delta cities, China

AbstractContrary to the existing literature that suggests the inhibitory or facilitating effect of housing prices on entrepreneurial dynamism, this paper explores the nonlinear effect of housing prices on entrepreneurship and countervailing effect of entrepreneurial dynamism on housing prices, in addition to investigating the spatial interaction between the two. This paper constructs a simultaneous equation model (SEM) to empirically test the interaction and spillover effects between housing prices and entrepreneurial dynamism. The results show that: (1) there is a two‐way interaction between housing prices and entrepreneurial dynamism; (2) the estimated coefficients of housing prices and the quadratic square term of housing prices (14.285 and −0.744, respectively) are consistent and significant as expected, indicating an inverted U‐shaped effect of housing prices on entrepreneurial dynamism; and (3) in geospatial terms, there are positive spatial spillovers and negative spatial interaction effects for both house prices and entrepreneurial dynamism in Yangtze River Delta cities.

Dynamics of urban sprawl: Deciphering the role of land prices and transportation costs in government-led urbanization

While the relationship among land price, transportation cost, and urban sprawl under the condition of local governments monopolizing land supply has been rarely discussed in the literature, this paper addresses this gap by hypothesizing based on the monocentric city model. The hypothesis suggests that due to increasing land prices and decreasing transportation costs, urban fringes are more likely to be developed, leading residents to move away from the city center and altering the demographic pattern of urban sprawl. An empirical analysis is conducted using panel data from 104 cities in China, including remote sensing data of urban land construction areas. The results show that high land prices and low transportation costs drive urban sprawl, with varying impacts across cities. The coupling coordination analysis indicates increasing influence of urban sprawl on land prices and transportation costs. These findings suggest the government should address the effects of unplanned urban expansion on these factors. The findings suggest that the government should pay more attention to the effects of unplanned urban expansion on land prices and transportation costs. Understanding the role of local governments in urban planning is crucial for comprehending China's urbanization strategy and its implications on social exclusion, gentrification, high housing prices, and other urban issues.

Impact of sudden public crises on spatial distribution patterns and driving factors of the urban catering industry: a case study of Shanghai’s catering POI data before and after COVID-19

ABSTRACT This study uses Shanghai to explore the effects of the COVID-19 pandemic on the spatial distribution patterns and driving factors of the urban catering industry. Through quantitative analysis of restaurant point-of-interest data and influencing factors in Shanghai’s main urban area from 2016 to 2022 using geographic information technology, machine learning, and spatial econometric models, this study predicts spatial changes in the catering industry. The number of restaurants in Shanghai’s main urban area continuously decreased from 2016 to 2022, with a significant pre-pandemic decline. The catering industry in this area has a significant spatial correlation in the spatial distribution, showing a pattern of “one core dominance with multiple cores coexisting,” with Jing’an and Huangpu Districts having the highest densities, which is expected to continue. Target markets remain a decisive factor in restaurant location selection post-COVID. Restaurant aggregation is most favorable when the population density is between 0 –50,000 people/km2, GDP is between 0–20 billion yuan/km2, housing prices are between 20,000 –130,000 yuan/m2, school density is between 0–20/km2, hospital density is between 0–10/km2, and attraction density is between 0–40/km2. Transportation conditions have no apparent threshold; the more developed the transportation, the more favorable the conditions for the catering industry. Post-COVID-19, areas with high housing prices and around tourist attractions are less likely to attract many restaurants. Areas around hospitals maintain restaurant aggregation, although this will decrease. Areas around schools will become popular for restaurants in the future.

Heritage and entrepreneurial urbanism: unequal economies, social exclusion, and conservative cultures

ABSTRACT This article articulates an argument observed in the voices of key stakeholders in Bath, Edinburgh, and York, in conversations with the literature, whereby heritage-led entrepreneurial urbanism practices lead to cultures that are conservative in nature. Consequently, such historic cities are less able to overcome inherent social challenges around unequal economies, high house prices, and the resulting exclusion. Through using locally controlled resources to encourage a more spatially fixed and equal economy, however, historic cities may reduce these social challenges and encourage the more progressive and vibrant cultures that will allow them to engage with the environmental challenges faced by all.

Land Value, and Urban Transport and Amenities: Evidence From Antananarivo, Madagascar

Although urbanization is an engine of growth, many African cities are overly crowded with massive traffic congestion and high housing prices, pushing the poor away to unfavorable settlements or remote suburban areas and making them commute long. The paper sheds light on the relationship between land value and urban attributes in a rapidly growing African city, Antananarivo, Madagascar. It shows that the land value gradient is steep with an elasticity of −0.78 with respect to trip time to the city center. Thus, housing prices are overshooting. Better urban planning is needed through improving transport accessibility by minibus. Other urban infrastructure services, such as piped water and garbage collection, and urban amenities are also important to add to land values. Spatial heterogeneity is found across different locations in the city. While some areas require clean water and climate resilience, others need more city amenities, such as parks.

Pre-marital homeownership as self-protection against divorce risks: Evidence from China's property division regime change

This paper examines the effect of uninsurable divorce risks on individuals' pre-marital homeownership by using an exogenous shift of the property division regime upon divorce from an equal-division regime to a title-based regime in China. This shift in 2011 aimed at protecting individuals' pre-marital assets, leading singles who worry about divorce risks to purchase a home prior to marriage. We find that singles' probability of owning a house prior to marriage increases by 3.2% in response to a one standard deviation increase in the divorce rate of their residing provinces. This effect is greater for female singles and singles above 30. Furthermore, the effect is stronger for singles with higher incomes, and singles living in the province with higher house prices. The empirical patterns are consistent with singles adopting pre-marital housing as a self-protection mechanism if they perceive great divorce risks after the regime shift in 2011. Our results provide important implications that housing serves not only as a durable consumption or an investment, but also as a self-protection mechanism against uninsurable divorce risks.

Can higher federal funds rates control mortgage lending during periods of high inflation and high house prices?

The U.S. is facing higher inflation since December 2020 along with higher house prices. After a sharp increase, house prices have started to decline very recently even more drastically – reminding us of the global financial crisis 2007–08. Rather late, from December 2021 onwards, the Fed started to increase the Fed funds rate. However, it is unclear whether the Fed funds rate can control bank lending activities – especially, mortgage lending. Surprisingly, our results suggest that the Fed funds rate fails to control mortgage lending during high inflation and high house prices in the absence of bank reserve requirements.

『스마트상점 기술 도입』이 소상공인 점포의 매출과 만족도에 미치는 영향

This study decomposes the local gap through the oaxaca factor analysis to find out how differences in housing prices affect the management costs with data the average value of three-year management costs between 2014 and 2016 to 536 complexes in three Gangnam and Gangbuk districts in Seoul. The results of the analysis of 290 complexes in three Gangnam and 246 complexes in three Gangbuk districts are as follows. First, housing prices did not affect administrative costs within the region, but were variables that affected data pooling. Second, when compared with the three Gangnam districts, the results of the characteristic coefficient, which can be explained by the characteristics of the complex and the external environment, showed that the gap in the management cost increased when the number of security personnel, repair and maintenance costs, elevator maintenance cost, floor area ratio, and 60m2 or more to 85m2. Third, the factors behind the gap between Gangnam 3 districts, which have higher housing prices than Gangbuk 3 districts, were confirmed to be the number of security personnel, repair costs, floor area ratio and elevator maintenance costs, and the higher the size and income of their holdings, the more they lived in Gangnam 3 districts, where local infrastructure was expanded, causing social inequality due to differences in housing welfare, such as safety, comfort and convenience.

The Impact of Digitization on Housing Prices: Evidence from China

Issues: The housing prices (HP) in China has been rising over the past 20 years, which is too extremely high to afford for citizens. Also, high housing prices results in various problems, such as increasing financial risks, a shift from physical economy to virtual economy, innovation obstacles, crowding out residents’ consumption, among others. Objective: This study strives to investigate the impact of digitization on HP, with an aim to explore an effective way to tackle high housing prices issue in China. Theoretical Framework: Digitization can essentially effluence the HP through various channels, such as promoting the economic efficiency, improving the infrastructure, affecting the population agglomeration, and increasing the availability for residents to work remotely, etc., whereby it plays a substantial role in curbing the housing prices. Method: With a sample of 279 cities covering the period from 2011 to 2019, a dynamic panel method, General Method of Moment model (GMM) is adopted to run the empirical analysis. Results: The empirical results confirm an inverted U-shaped relationship between the HP and digitization, which indicate that digitization (DIG) acts as an impetus to increase HP at the first stage, but when the digitization surpasses the turning point, it may exsert a powerful force to lower housing prices. Implications: Improving the digitization is among the solutions to curb high housing prices, as long as the digitization exceeds the inflection point. Originality: This study first concludes digitization can be a considerable effluence on housing prices, providing a new insight into solving high housing prices.

Housing prices and family fertility decision-making in China: Effect and mechanism

In our article, we conduct an empirical analysis utilizing a 5-year panel data sourced from the China Family Panel Studies. Our findings indicate that elevated housing price exert a significantly adverse influence on fertility decisions, with observed heterogeneity that is more pronounced among urban-dwelling families, those without property rights, those with existing children, and females aged between 31 and 40. Following the relaxation of the family planning policy, this negative effect becomes notably more pronounced. These conclusions remain robust with IV estimation. Considering the underlying mechanisms, the impact of high housing prices extends beyond a mere crowding-out effect on fertility through consumption. It also serves to motivate females to enhance their education, diminishes their self-identity, raises the cost of child-rearing, and exerts an inhibitory effect on marriage. Collectively, these factors further amplify the adverse impact of housing prices on the fertility rate.

Study on The Influence of High Housing Price on Fertility Desire

In recent years, China's birth rate has been declining continuously, facing the challenge brought by population structure transformation. Nowadays, housing prices in cities are rising rapidly, while the cost of raising children is also very high, and the two important decisions of childbearing age people, housing and reproduction, occupy a lot of family resources. Therefore, this paper explores the impact of high housing prices on fertility desire and finds that high housing prices will have a negative impact on it. That is to say, high housing prices will "squeeze out" fertility desire. Based on this, this paper puts forward three suggestions: First, adhere to the principle of "houses are for living in and not for speculative investment" to improve residents' living space. Second, we will introduce measures to reduce the cost of childbirth and parenting to reduce the burden of childbirth. The third is to create a good social environment to stimulate the birth rate.

Housing prices and points of interest in three Polish cities

This paper shows the usefulness of open source points-of-interest (POI) data for understanding the causes of volatility in residential property prices. Points of interest are unique locations or features cartographically mapped in space and explicitly connected to various aspects of human life. This point number, and density, primarily reflect a city’s spatial structure. They could therefore indicate a higher quality of life in a given urban zone, resulting in higher demand for housing in the area and, consequently, higher housing prices. This study was conducted in three Polish cities: Warsaw, Poznań and Olsztyn. Our research also attempted to establish which POI categories constitute stimulants and which are destimulants in the housing market. To determine the significance of POI in the price formation process, we used the quantile regression model and its spatial version, apart from classical regression models. The results of our research show the importance of POIs for the formation of housing prices. Individual POI categories are of minor importance, while the simultaneous presence of many different POIs definitely has a positive impact on housing prices.

Residential differentiation characteristics based on “socio-spatial” coupling: A case study of Zhengzhou

Residential differentiation transcends its physical aspect, necessitating attention to deeper issues such as group-based disparities underlying spatial configurations. This paper based on multiple data sources, utilizes indicator dimensionality reduction, spatial clustering, and indices of dissimilarity to conducts clustering and matching analysis of social groups and residential spaces. It summarizes and distills the social-spatial coupling types of residential differentiation in Zhengzhou city under a layered model, focusing on social spatial polarization and solidification phenomena in China, and proposing optimization and control recommendations. Findings include: (1) Residential space differences primarily manifest in pricing, while social group distinctions focus on consumption capacity and age. Residential differentiation is a process of continuous differentiation and interaction between two dimensions; (2) Urban housing types do not strictly align with socio-economic attributes, with six typical coupling types observed within the “inner city - new city - outskirts” framework; (3) The “filtering” effect of high housing prices in Zhengzhou leads to wealthy clustering in new city outskirts, while low-income groups aggregate in peripheral and declining inner-city areas, resulting in pronounced spatial segregation; (4) Urban residential differentiation reflects the interaction between macro-controls in the housing market and individual residential choices, serving as a spatial representation of social stratification outcomes.

How does monetary policy affect income and wealth inequality? Evidence from quantitative easing in the euro area

SummaryThis paper evaluates the impact of quantitative easing on income and wealth of individual euro area households. We first estimate the aggregate effects of a quantitative easing (QE) shock, identified by means of external instruments, in a multi‐country vector autoregression (VAR) model with unemployment, wages, gross operating surplus, interest rates, house prices, and stock prices. We then distribute the aggregate effects across households using a reduced‐form simulation on micro‐data, which captures the portfolio composition, the income composition, and the earnings heterogeneity channels of transmission. The earnings heterogeneity channel is important: QE compresses the income distribution because many households with lower incomes become employed. In contrast, monetary policy has only negligible effects on the Gini coefficient for wealth: While high‐wealth households benefit from higher stock prices, middle‐wealth households benefit from higher house prices.

Investigating the civic emotion dynamics during the COVID-19 lockdown: Evidence from social media

While quality environments (e.g., greenery) have been widely reported to alleviate residents' psychological stress during COVID-19 quarantines, this study argues that roles of the built environment and other commonly found emotion determinants can vary or reverse under strict lockdowns when human mobility is seriously restricted. We took Shanghai’s "citywide static management" as a case study and scraped over 100,000 Weibo posts between February and July 2022 to capture civic emotions before/during/after the lockdown. Natural Language Processing (NLP) was applied to grade the unique “helplessness” sentiment along with other negative emotions. Spatial regressions were utilized to investigate their determinants. We present three controversial findings: 1) Quality environments (e.g., perceived greenness, sky view) alleviated negative emotions before/after the lockdown but exacerbated stress during the lockdown, indicating that residents become more vulnerable when they lose superior access to urban amenities for which they have paid price premiums; 2) Sociodemographics’ impact on negative emotions varied significantly throughout three lockdown phases, with the elderly experiencing increased stress when losing access to emergency services; 3) Housing prices and rents inversely correlated with negative emotions (higher housing price indicated richer social resources), implying the complex interplay between residents’ socioeconomic status and well-being. Our data-driven approach effectively retraces local voices and discloses civic emotions, informing more human-centric urban management strategies to facilitate social sustainability in the face of future crises.