Housing Market Factors Research Articles

국내 기준금리 변동이 MBS(Mortgage-Backed Securities) 발행금리에 미치는 영향

This study examines whether the change in base rate affects the initial yield spread of mortgage-backed securities in Korea. We classify the whole period into increase or decrease base rate periods and we analyze which factors such as macroeconomic conditions, bond and housing market factors, and mortgage-backed securities (MBS) characteristics mainly affect the MBS initial yield spread. We find that the leading economic index positively (negatively) affects MBS initial yield spread during the increase (decrease) base rate period. In addition, MBS initial yield spread is negatively influenced by an increase in demand for other bonds issued by state sponsored enterprises or the increase of mortgages under the increased base rate period. We also identify the different effects by the MBS maturity. The MBS under 3-year maturity shows similar effects to the total MBS. However, the MBS over 5-year maturity is affected by only the bond market factors such as the demand for other bonds issued by state sponsored enterprise. Overall, MBS initial yield spread is differently affected by the trend of base rate. Therefore, it is necessary to consider macroeconomic conditions or the bond market to issue MBS under favorable conditions.

ASSIMILATING THE DIASPORA OF THE AMERICAS IN AUSTRALIA: AN INTERGENERATIONAL ANALYSIS

ABSTRACT People from the Americas are a small, largely neglected part of Australia’s immigrant population. Most came from middle-class backgrounds in the post-global economic restructuring era (post-mid-1970s), though a minority were working class. Five dimensions of their intergenerational assimilation are analyzed: educational attainment and occupational status; linguistic shift; identification as Australians; discrimination (racism); and, for Sydney, first to second generations spatial assimilation. While the first three dimensions conform to the classic assimilation model, intergenerational socioeconomic status shift and spatial dispersal do so only partially. Intergenerational patterns of educational attainment and occupations broadly correlate, but first through third generation shift among both North and Latin Americans is downwards toward national means. Second generation ancestry groups are more dispersed than the first, but only a minority into host-society districts; suggested reasons include superdiversity, age, income, and housing market factors.

Homelessness and Housing Market Condition in the United States

The study estimated the relationship between the homelessness rates, the housing market factors, and the socio-economic factors in the country level, regional level, and the state level in the United States from 2007 to 2016. The results show that the housing price index, personal expenditure on housing utilities, rental vacancy rate, poverty rate, number of job loss and income inequality are significant determinants of the homelessness in the country level. For the regional level, the West had the highest homelessness rate intercept while the South West is the region with the lowest intercept. Housing price, the expenditure on housing utilities and poverty rate are the factors determining the homelessness rate in the regional level. When the study adds the fixed effects of fifty states to the model, the result shows that rental vacancy rate, number of job loss and the income inequality are three factors that can explain the change in homeless population number in the state level. To slow down the growing homelessness in the country level, the economic policy should be focusing at poverty reduction, healing people who suffered from job loss, and changing the tax policy to increase income equality. For the housing market, the government may consider the policy to support the expansion of low-cost housing units in term of both fiscal and monetary policies.

Do Local Economic Conditions Affect Homelessness? Impact of Area Housing Market Factors, Unemployment, and Poverty on Community Homeless Rates

This article estimates the impact of local housing and labor market conditions on area homelessness using the U.S. Department of Housing and Urban Development's (HUD’s) annual point-in-time counts of homelessness from 2007 to 2014. In cross-sectional models, the median rent, the share of households in rental housing, and the poverty rate have strong positive impacts on homelessness. Once area-fixed effects are included, only the median rent remains positive and significant. However, fixed-effect models find a positive relationship between poverty and homelessness in communities that maintain right-to-shelter policies, suggesting constraints in shelter bed supply may limit responses of homelessness to changes in economic conditions.

ЦІНОУТВОРЕННЯ НА РЕГІОНАЛЬНИХ РИНКАХ ЖИТЛА, ТЕОРЕТИЧНИЙ ТА ПРИКЛАДНИЙ АСПЕКТИ

The article covers the theoretical and applied principles of price formation for housing within regional markets. In research process was found that the development of the regional housing market is subordinated to the action of regional development theories and general economic theories (cost and price). Among the spatial theories the influence of theories of agriculture placing and industry, central places, geographical location of economy, the theories of “growth poles”, “diffusion of innovations”, “center-periphery theory”, “city-centrality”. Economic theories are theories which actually are based on market process, formation of free market and theories of market`s processes regulation. It is proved that such theories do joint influence on pricing and the pricing mechanisms. It is proved that such theories do common influence on price formation and the pricing mechanisms. It was found, that pricing is an objective process, for determining and establishing prices within the region, which occurs primarily at regional and local level, touching individual regional market and is subjected to regulation by the state. It was established, that the formation of regional housing markets are too difficult process and are indicated by a large number of factors influencing to the processes of its formation. Through theoretical generalization, we identified six groups of factors that have a direct and indirect impact on supply and demand on the regional housing market. To the first group of factors attributed territorial housing market factors, among which are selected location of the property, infrastructure providing of this territory and ecological situation. The second group of factors includes quality characteristics of housing, among which are: construction materials; working characteristics and wearing out; architectural and planning features of the property. The third group is represented by economic factors, which include income of population, income of developers or property developers; the overall level of development of a region or settlement; investment factor; mortgage factor speculative factor and construction industry development in general. Group of demographic-settlement factors include an assessment of the demographic situation, labor market in the region, migration processes, the system of settlement and security of this area. Legislative and legal factors manifested through the state and regional policy in the housing market, housing programs, taxation processes, lending insurance and in the housing market. Social and psychological factors include behavior and preferences of consumers, price expectations, seasonality, ethnic or religious characteristics of the region. Here are presented the dynamics and confirmed differentiation in housing prices within the largest cities in Ukraine and in the city of Kyiv.

Internal migration, regional labor markets and the role of agglomeration economies

We analyze the determinants and regional implications of internal migration flows across Danish municipalities in 2006–2012. Besides assessing the role of labor market and housing market factors in driving a region’s net migration rate, we particularly focus on agglomeration factors identified by “new” migration theories related to regional growth models and the new economic geography. The work contributes to the field in the following way: we extend the scarce literature on the different channels through which agglomeration economies act as an attractor for mobile labor. Moreover, we account for the role of space–time dynamic adjustment processes and simultaneity among migration and labor market variables and finally test for heterogeneity in the migration response to regional labor market disparities among low- and high-skilled migrants. Our results support the view that agglomeration economies are indeed key drivers of internal migration flows in Denmark. That is, while we obtain mixed evidence with regard to the role of traditional labor and housing market variables, most of the included proxies for agglomeration economies such as the region’s population density, patent intensity, endowment with human capital as well as the region’s employment share of knowledge-intensive services are positively correlated with the region’s net in-migration rate. Regarding the regional implications of internal migration flows, the results hint at a process of cumulative causation for the time period of analysis running from agglomeration economies to the inflow of mobile labor and subsequent regional income development.

An institutional analysis of housing and basic infrastructure services for all: the case of urban India

Despite high and sustained GDP growth rates over the past two decades, and the emergence of a sizable middle class in most Indian cities, the vast majority of urban residents continue to live in sub-standard or informal housing, with few basic amenities. Many of those who live in formal housing pay a disproportionately high proportion of their incomes. Even then, basic services like water are not assured. This paper aims to develop a conceptual framework within which to consider existing and future policies to deliver housing and basic infrastructure services for all in urban India. The framework attempts to map the inter-linkages between underlying housing market factors (demographics, existing housing stock, affordability, housing finance, land acquisition) and local and macro institutional conditions (economic, legal, planning, financial systems, housing policy), so that existing interventions can be understood and evaluated comprehensively. The framework can help develop interventions that take into a...

Neighbourhood Selection of Non-Western Ethnic Minorities: Testing the Own-Group Preference Hypothesis Using a Conditional Logit Model

The selective inflow and outflow of residents by ethnicity is the main mechanism behind ethnic residential segregation. Many studies have found that ethnic minorities are more likely than others to move to ethnic minority concentration neighbourhoods. An important question which remains largely unanswered is to what extent this can be explained by own group preferences, or by other neighbourhood or housing market factors. By using longitudinal register data from the Netherlands, this study contributes to the literature on neighbourhood selection by ethnic minorities in two ways. First, it distinguishes between different ethnic minority groups where most studies look at the group as a whole. Second, it takes into account multiple dimensions of neighbourhoods where most other studies look at neighbourhoods one-dimensionally, which allows us to test the own group preferences hypothesis. Using a conditional logit model we find that housing market constraints can partly explain the selection of ethnic minorities into minority concentration neighbourhoods. Also own-group preferences are found to be important in explaining neighbourhood selection. There are, however, differences between ethnic minority groups. Own-group preferences and housing market constraints together explain why Surinamese and Antilleans select into minority concentration neighbourhoods. When these factors are taken into account, Turks and Moroccans are still found to select into concentration neighbourhoods of ethnic minorities other than their own ethnic group.

Migration, housing market, and labor market responses to employment shocks

One reason for the United States’ economic success is the willingness of its residents to follow jobs. Households’ decisions to move depend not only on job prospects but also on the relative cost of housing. I investigate how the housing market affects the flow of workers across cities. This occurs through at least two channels: the relative mobility of homeowners versus renters, and the relative cost of housing across markets. I use homeownership rates to measure the former, and use an index that measures house prices across metropolitan statistical areas (MSAs) and the price elasticity of housing supply to capture the latter. To show how variation in the these housing market factors not only affects cross-city migration but also the housing and labor markets, I estimate a VAR model of migration, employment, wages, house prices, and new housing supply using annual data from 277 US MSAs for 1990–2006. The response functions based on labor supply and demand shocks show substantial variation when evaluated at different values of the homeownership rate, the price elasticity of housing supply, and relative housing prices. I also allow for spillover effects in the model that reflect the impact of a labor demand shock in the nearest city.

U.S. Monetary Policy Surprises and Mortgage Rates

This paper examines the magnitude and persistence of the mortgage rate pass-through in response to U.S. monetary policy surprises. The policy surprises are measured by both the surprise changes to the target federal funds rate (the target factor) and surprises in the future direction of the Federal Reserve monetary policy (the path factor). We find that within the week of the FOMC announcements, both the target and path factors have significantly positive impacts on the 1-year ARM rates. In addition, the impact of the target factor on the 1-year ARM rates lasts up to one week after the announcement. We also find that the target factor has a one-week lagged impact on the 30-year fixed mortgage rate. Thus, short-term adjustable mortgage rates experience higher degree of pass-through and faster adjustment speed than long-term fixed mortgage rates. Furthermore, there exist the asymmetric adjustments of U.S. mortgage rates, and the pass through of mortgage rates in responses to monetary policy surprises are affected by the size of monetary policy surprises, the direction of business cycle and whether monetary policy is tightening or loosening. We also find that there exists heterogeneity in the mortgage rate pass-through process across regions. The cross-region variation in the response to the target factor is correlated with growth in income and the unemployment rate in the region, while the cross-region variation in the response to the path factor is mainly related to the housing market factors, such as the rental vacancy rate.

Patterns of Residential Crowding among Hispanics in Later Life: Immigration, Assimilation, and Housing Market Factors

We describe patterns of residential crowding among older Hispanics and non-Hispanic Whites. We also examine hypotheses about the relationship of residential crowding with assimilation (language and duration of residence) and housing market characteristics. We employ a multilevel research design, using data from the 2000 U.S. Census of Population. Hierarchical linear models are utilized to estimate the association between residential crowding and both individual and housing market factors. Approximately one third of older Hispanics in metropolitan areas live in crowded housing compared with only one tenth of older non-Hispanic Whites. Foreign-born older persons report higher levels of crowding than U.S.-born older persons. Residential crowding differences between older Hispanics and non-Hispanics are not eliminated after controls are included. Older Hispanics who report better English language skills and a longer duration of residence in the United States live in less crowded housing. We do not find evidence for a relationship between crowding and residential segregation, but we find consistent evidence for an association between residential crowding and relative size of the Hispanic population. The forces that shape household composition and access to housing among older Hispanics appear to result in higher levels of residential crowding for this population.

Exploring the demographic location of housing wealth in East Asia

The spread of homeownership has had a profound impact on the pattern of life chances and opportunities across a wide range of societies with varying effects within and between generations. Particular attention has been paid to the impact of inheritance and inter vivos transfers associated with the growth of housing wealth. Both academics and policy makers have been concerned with its wider implications for the distribution of wealth. Most commentary and analysis have, however, been focused on Western societies, with more mature homeownership systems. Arguably, however, it is in East Asian societies where the combined impacts of rapid economic development, housing tenure change and substantial house price inflation have produced the most striking social transformation with the potential to exacerbate already widening social divisions. This paper explores the ways in which key institutional, economic and housing market factors have shaped the demographic distribution of housing wealth in China, Japan and Hong Kong and the likely implications for flows of assistance between generations. These shifting and contrasting relationships will have important implications for public policy priorities in the future.

Factors Important in the Decision to Buy a First Home

The purchase of a first home is seen as a very important stage in the housing career of an individual or household and has received considerable attention in the literature. Explanations of the switch in tenure have traditionally been explained using the family life cycle or the life course models. More recently, the importance of housing market factors has been recognized. This study reports on a survey conducted in Australia in March 2000 in which first home buyers were asked which factors were most important in the timing of their decision to purchase. Attention was paid to the sampling process in order to ensure a representative sample. The results show that housing market conditions are critical in understanding the timing of the decision to purchase a first home.

Housing aspirations and obsolescence: understanding the relationship

This paper aims to consider whether there is an incipient problem of housing obsolescence in the UK, and if so, what its main dimensions are. It first examines how obsolescence in housing might be understood, and identifies four relevant factors: the nature of the housing stock; the expectations of households and how they are changing; locational and housing market factors; and the role of housing and urban policy. Using this broad structure, obsolescence and the changing aspirations of households are examined in two ways: first by drawing on an eclectic literature about housing, policy and household behaviour; and second by using evidence from interviews with housing professionals in the north of England. The paper concludes that there are good grounds for thinking that the relationship between what the housing stock offers and aspirations is under increasing strain. There seems to be a significant gap opening up between the qualities provided by new and by older housing, challenging longstanding preferences. There is an important set of relationships between tenure and obsolescence, with home ownership defining what is considered normal throughout the housing system. The findings also challenge the prevalent view that neighbourhood conditions are the key to obsolescence, as there is evidence of suppressed obsolescence and doubt about the strengths of some local markets where demand is apparently high. There is consensus around the desirability of local housing systems offering a choice of sizes and dwelling types, which many older as well as new housing areas do not.

Leaving home and leaving the State: evidence from the United States

Leaving the parental home is an important first step in a long-term housing career. We extend the previous research on this topic by examining the impact of housing market factors on the risks of leaving with or without a partner in the United States. We also re-examine the role of the income of the young adult leavers in nest-leaving, and extend the previous work by studying local versus interstate movement when leaving home. We ask: does the parental housing context have an impact on the likelihood of leaving home, and to what extent is this impact different for those leaving to marry or cohabit and for those leaving to live alone? We find that although housing factors play a role, they are much less important than the young adult's own income, and that there are complex interactions with the marital status of the child. The findings on leaving and moving greater distances show that there are important differences related to leaving with or without a partner, and that this is further differentiated by education, both of the child and the father. More income and greater education lead to a greater likelihood of interstate movement coincident with leaving the parental home. Copyright © 2000 John Wiley & Sons, Ltd.

Housing Affordability: Effect of Housing Market and Socio-Economic Factors

AbstractA major concern of the American public is housing affordability. The purpose of this study was to investigate how general housing market factors differed between rural and urban counties in a midwestern state and their effect on housing affordability. Research results suggest that in urban counties the housing market factors have a higher mean score than those of rural areas. Housing financing programs and regulations are more apparent in urban areas than in rural areas. Household characteristics impacted housing affordability rather than the housing marketability. There was no significant difference in the housing cost burden between rural and urban households. This study indicated that 76% of the total respondents identified themselves as living in affordable housing.

Local Variations in the Sale of Council Houses in England, 1979–1984

KLEINMAN M. and WHITEHEAD C. M. E. (1987) Local variations in the sale of council houses in England, 1979–1984, Reg. Studies 21, 1–11. The ‘received view’ about council house sales suggests that spatial variations in the level of sales will be very closely linked to variations in household and dwelling characteristics and to the political control of the local authority. In this paper, an assessment is made, using correlation and regression analyses, of the adequacy of the received view in explaining observed variations in sale rates between English local authority districts. Results suggest that greater importance should be given to the influence of local private housing market factors. Finally, the implications of these findings both for government housing policy and for theories about the residualization of council housing are discussed. KLEINMAN M. et WHITEHEAD C. M. E. (1987) Variations locales dans la vente des habitations a loyer modere en Angleterre de 1979 a 1984, Reg. Studies 21, 1–11. L'avis rec...