Housing Sector Research Articles

A co-production model for the South African housing sector

Background: The public housing delivery practices in South Africa are fragmented, resulting in various outcomes concerning housing delivery. There is a pressing need to overhaul public housing delivery that puts citizens at the core of the delivery process.Aim: The current state-led model of delivering housing is not effective and by design, the model for housing delivery should include the participation of beneficiaries. The aim was to develop a co-production model for housing delivery.Setting: The article focused on the housing sector in South Africa.Methods: A qualitative research approach and grounded theory as research design was used. Instruments were document analysis and semi-structured interviews with participants who are stakeholders in housing co-production. Data collected was analysed through inductive thematic analysis.Results: The results suggested a self-reliant approach to housing delivery, which is demand driven with the state as a facilitator and not the provider of housing. The model for housing should have a component that does not perpetuate a culture of dependency and entitlement but promotes the concept of co-production.Conclusion: The article explored the possibility of introducing a co-production model for housing delivery model in South Africa. It was established that the role of government must shift to that of an enabler and facilitator instead of a provider of housing.Contribution: This proposed model contributes towards the body of knowledge in terms of promoting public service delivery and performance (in this instance in the housing sector) in South Africa as a country situated in Africa.

Smart housing adaptations register with user matching functionalities for different mobility categories for the social housing sector

PurposeThe lack of a proper register to store, match and display information on the adapted property has led to a waste of resources and prolonged delays in matching the disabled and elderly people with appropriate properties. This paper presents the development of a Housing Adaptations Register with user-matching functionalities for different mobility categories. The developed system accurately captures and documents adapted home information to facilitate the automated matching of disabled/aged applicants needing an adapted home with suitable property using banding, mobility and suitability index.Design/methodology/approachA theoretical review was conducted to identify parameters and develop adaptations register construct. A survey questionnaire approach to rate the 111 parameters in the register as either moderate, desirable or essential before system development and application. The system development relied on DSS modelling to support data-driven decision-making based on the decision table method to represent property information for implementing the decision process. The system is validated through a workshop, four brainstorming sessions and three focus group exercises.FindingsDevelopment of a choice-based system that enables the housing officers or the Housing Adaptations Register coordinators to know the level of adaptation to properties and match properties quickly with the applicants based on their mobility status. The merits of the automated system include the development of a register to capture in real-time adapted home information to facilitate the automated matching of disabled/aged applicants. A “choice-based” system that can map and suggest a property that can easily be adapted and upgraded from one mobility band to the other.Practical implicationsThe development of a housing adaptation register helps social housing landlords to have a real-time register to match, map and upgrade properties for the most vulnerable people in our society. It saves time and money for the housing associations and the local authorities through stable tenancy for adapted homes. Potentially, it will promote the independence of aged and disabled people and can reduce their dependence on social and healthcare services.Originality/valueThis system provides the local authorities with objective and practical tools that may be used to assess, score, prioritise and select qualified people for appropriate accommodation based on their needs and mobility status. It will provide a record of properties adapted with their features and ensure that matching and eligibility decisions are consistent and uniform.

Financial shock transmission in China's banking and housing sectors: A network analysis

Rising housing prices in China present a significant risk to financial and economic stability. Our study investigates this "gray rhino" risk by analyzing the financial shock transmission network, using a novel high-dimensional network approach applied to data from 45 real estate firms and 15 banks from 2011 to 2023. We discover that the network's connectedness is predominantly short-term and internal to each sector, with weaker inter-sectoral links. Key macroeconomic indicators, notably monetary policy uncertainty, and inflation, significantly drive this connectedness. Our results indicate that, despite concerns, China's real estate risk remains within manageable bounds, offering critical insights for market stakeholders.

Crisis resilience assessment and management of public utility companies

Currently, the most frequently used models for forecasting the probability of company bankruptcy in the housing and utilities sector lack accuracy. The hypothesis is put forward that crisis resilience of a company can be assessed based on its adaptive capabilities. The paper aims to construct a more accurate compared to the known regression model for predicting bankruptcies, as well as develop models for assessing the quality of crisis adaptation management at public utility companies allowing for the stakeholders’ interests and peculiarities of their interface. The methodological basis of the study consists of the theory of crisis management and a stakeholder approach. The methods include multiple regression analysis, stakeholder mapping, sociological survey, and expert assessments. The evidence comes from the accounting and statistical reporting of 49 public utility companies, materials of arbitration cases, survey results of 33 heads of organisations obtained in the period from February to March 2023. The theoretical developments are implemented within the empirical studies of public utility companies. To improve crisis adaptation and resilience of public utility companies the findings recommend to launch staff training programmes, establish mechanisms for horizontal intra-sectoral connections and maintain cooperation at the level of public authorities in order to control investments in the housing and utilities sector.

STUDY OF THE STATE AND FUNCTIONING ENVIRONMENT OF MUNICIPAL THERMAL ENERGY ENTERPRISES OF THE HOUSING AND COMMUNAL INDUSTRY OF UKRAINE

Goal. Analysis of the state and research of the main trends in the development of the housing and communal industry of Ukraine on the example of communal heat energy enterprises to outline the main priorities of its development. Method. To achieve the goal, general scientific and special methods were used: analysis and synthesis, statistical methods of comparison, grouping, graphic method and others. The results. The structure, intensity of dynamics and development trends of sub-sectors of the housing and communal industry of Ukraine were studied. It was determined that the profitability of the operational activity of enterprises in the housing and communal sector of the economy of Ukraine is unprofitable starting from 2020; the largest and consistently negative value of the profitability indicator is demonstrated by the activity of heat energy enterprises against the background of the growth in the volume of sales of household appliances. It was determined that if the identified trend is maintained, the volume of realization of communal services will amount to UAH 2,294±231 billion in 2024, of which UAH 121±9 billion. will belong to heat energy enterprises. On the basis of the conducted analysis, the expediency of introducing additional detailing of the data of official statistics of the structural survey of the activities of enterprises in terms of types of ownership according to the KOPFG has been proven. Scientific novelty. A clarification of the conceptual apparatus and a methodological approach to the analysis of the state of enterprises in the housing and communal industry of Ukraine are proposed. The need to expand statistical data for evaluating the competitive environment of municipal heat energy enterprises is substantiated. Practical significance. The results of the research consist in the possibility of practical use of the mentioned approach to evaluate the activity and development strategy of communal heat energy enterprises.

Who lives there now? Residualisation of social housing in Austria

Across Europe, there is a trend to re-focus social housing on the most economically vulnerable groups (“residualisation”). We investigate whether this trend is also observed in Austria, a conservative welfare state with a social housing system open to a broad range of households and a long tradition of municipal housing. Using data from 1995 to 2018, we estimate residualisation indicators that compare the income of social housing tenants with other housing sectors. Based on tenants’ income, we find that municipal housing has become more residualised. This contrasts with Austria’s social housing allocation policy, where generous income limits remain important cornerstones. For limited-profit housing associations (LPHAs), we observe a smaller residualisation trend (mainly outside the capital Vienna), which has gained momentum since the early 2010s. This remedies the Austrian peculiarity that the LPHA sector was a middle-income tenure rather than a safety net for the poor. For both types of social housing, a growing income gap with owners is noticeable.

The Role of Speculative Demand in Housing Price Changes in Turkey

Housing accounts for the largest portion of households' total assets in Turkey. It is an economic sector that requires careful analysis, especially considering the government's housing sector support policies and the significant price increases in recent years. This study utilizes the theoretical model developed within the Efficient Markets Hypothesis framework and the SVAR methodology to estimate house price changes. These changes are then decomposed into structural shocks, including supply, residential demand, and speculative demand shocks. The empirical results highlight the significant role of speculative demand in driving house price changes, with house price expectations being the main factor influencing speculative demand shocks. The behavior of the banking sector and interest rates also play a significant role in this process. Consequently, policies to stabilize house prices should consider these factors and not solely focus on credit regulations when consumer expectations are the driving force behind house price changes.

BUSINESS MODEL TRANSFORMATION OF REITS IN THE SENIOR HOUSING SECTOR

This study examines the transformative impact of the REIT Investment Diversification and Empowerment Act (RIDEA) of 2007 on Real Estate Investment Trusts (REITs) and their partnerships with operating entities in the U.S. senior housing industry. We explore how REITs, functioning as both asset owners and managers, adapt their business strategies in response to the evolving business landscape. Employing a case study approach rooted in Zott and Amit’s (2010) conceptualization of business models, the study identifies and analyzes notable shifts in market participants’ recognition of value-enhancing approaches, encompassing not only traditional rental income but also the operational performance of property managers. The findings reveal an expanded risk and profit-sharing mechanism propelled by the newly implemented business framework based on RIDEA, fostering enhanced alignment of interests between REITs and operators compared to the traditional business framework. While this effect under the new model holds the potential for significant enhancements in operational efficiency for asset managers, it concurrently introduces complexities arising from heightened financial and market risks, as well as challenges related to workforce management. Our findings offer valuable insights to industry experts, including REITs, operators, investors, and policymakers, enriching their comprehension of the evolving business models within the senior housing sector.

Exploring the spatialisation of the performance of residential REITs investment and direct investment in the housing market

ABSTRACT Despite numerous studies about the housing sector, the connection between the performance of residential real estate investment trusts (REITs) investment and direct investment in the housing market is still under-researched. To help fill this gap, we used quarterly data of the Australian Securities Exchange (ASX) residential REITs index and direct housing returns of Australia and its major cities, spanning March 1983 to June 2021, and adopted a suite of econometric methods to document the following findings. First, publicly listed housing (residential REITs) and private housing markets are not separated, but both are closely related in terms of their investment performance. Second, the performance of direct investment in the housing market of Adelaide, Brisbane, Melbourne and Sydney could lead to positive investment performances for residential REITs over time, while no comparable evidence is found for Canberra, Darwin, Hobart and Perth. Third, further analyses revealed a one-way direction of performance, flowing from the housing market of Brisbane, Melbourne and Sydney to residential REITs, while no similar evidence of performance flow was found for Adelaide. Our study has provided new evidence that could contribute to the discussion on the expansion of residential properties in the portfolio of institutional investors.

A Liveability Framework for Medium to High Density Social and Affordable Housing: An Australian Housing Case Study

ABSTRACT The private rental market costs are placing a burden on household budgets, thus significant pressure is on governments and private housing organisations to supply more social and affordable housing solutions. This research evaluates the key elements of medium- and high-density liveable and accessible social and affordable urban housing precincts. Focusing on investigations into an Australian housing case study, the authors establish a liveability framework to improve understanding of whole-of-life needs. Through a comprehensive literature review, a case study and a series of in-depth interviews with key stakeholders from the housing sector five key elements were identified. These key elements include: (1) Liveability, (2) Accessibility, (3) Value equation, (4) Regulatory and policy environment, and (5) Adoption and overcoming barriers. The liveability framework will form the basis of a set of quality standards that can be used to guide precinct planning, design development and management.

Seven propositions about ‘generation rent’

ABSTRACT Intergenerational disparities in housing have emerged across countries, giving rise to narratives of “generation rent”. Despite popularization of the term across academia and public discourse, it remains nebulous, divisive, and lacking nuance. Through seven propositions, this paper synthesizes recent evidence to more accurately capture the breadth of young adults’ housing inequalities and advance debates surrounding “generation rent”. It begins by addressing its drivers, describing shifts in the political economy of (rental) housing which disproportionately disadvantage young adults. It then identifies features of “generation rent”, illuminating heterogeneity between socio-economic groups, housing situations, and rental types. Finally, it charts outcomes of housing market pressures which reshape lives and livelihoods across generations, albeit in different ways. To this end, this paper puts forward a new classification of four sub-categories conspicuous in the historically homogenized notion of “generation rent”, namely “second generation owner”, “delayed buyer”, “tenant” and “precariat”. It argues that, harnessed correctly, “generation rent” can be a useful lens to illustrate wider housing sector transformations and their effects for class-stratification and the reproduction of socio-economic inequalities.

Just transitions and sociotechnical innovation in the social housing sector: An assemblage analysis of residents’ perspectives

Creating low-carbon pathways for domestic electricity and heating is a core aspect of the UK Government's housing strategy. Understanding issues of energy justice and the socio-technical dynamics of low-carbon innovation are vital for successfully implementing new technologies and retrofit measures across diverse communities and different housing types. The social housing sector is particularly important in the study of just domestic low-carbon transitions due to the challenges faced by residents concerning energy affordability and insecurity during the ongoing cost of living crisis in the UK. This qualitative study, conducted in the Northeast of England, adopts an assemblage thinking approach to examine the experiences of social housing residents. Through thematic analysis of interviewee responses, we identify themes related to cost and affordability; decision-making dynamics and energy justice; disruption, retrofit and ‘fabric first’; energy autonomy and the practicalities of technology choice; and environmental values and collective climate action. We find that justice in the low-carbon home requires social housing organisations to strengthen mechanisms for resident engagement and interconnectedness before retrofit roll-out, to identify independent sources and arbiters of information on upfront and long-term energy costs, to ensure effective mechanisms for the social control of energy use, and to provide a platform to encourage nascent energy citizenship through which residents link pro-environmental behaviours in the home to broader networks of social action on climate change.

Revolutionizing affordable housing in Africa: A comprehensive technical and sustainability study of 3D-printing technology

The global challenge of providing affordable and sustainable housing, particularly in Africa's intensified housing crisis, has spurred interest in transformative solutions such as 3D-printing technology. This research addresses a significant gap in understanding the technical and sustainability characteristics of 3D-printed housing, by comprehensively assessing a full-size 3D-printed house. Beyond examining building performance, a thorough life cycle assessment quantifies the whole life cycle carbon and cost, comparing the 3D-printed house with its conventional counterpart. The findings underscore the superior performance of 3D-printed housing in both technical and sustainability aspects. A 48 % reduction in the carbon footprint emphasizes the environmental sustainability of 3D-printed house. Despite a 70 % reduction in construction duration, the initial costs of technology and imported proprietary materials contribute to a higher life cycle cost for the 3D-printed house (381 %) in Africa.These results affirm the potential of 3D-printing as a sustainable and efficient mechanism for revolutionizing the African housing sector by improving performance and expediting delivery. The study provides valuable insights for housing stakeholders, advocating for the judicious use of 3D-printing and local bio-mediated geo-materials to address African housing crises, enhance residents' quality of life, and, consequently, sustain African cities and society.

Building energy characteristic evaluation in terms of energy efficiency and ecology

The assessment of energy efficiency and the environmental impact of building operation, in energy terms, determine to a large extent the energy intensity of the housing sector as a whole and the planning of energy transition measures. In order for these measures to be properly targeted and the building assessment to be reliable, it is necessary to accurately determine the energy demand of the building. The calculation model presented in the article allows for a multivariate assessment of a building's energy demand using static methods. The methodology presented in the article for the determination of energy performance certificates for buildings is complemented by an interpretation regarding the efficiency of the energy systems in the building and the environmental emissions. A model of the existing single-family building was evaluated for this purpose, and subjected to a multivariate analysis depending on the configuration of the heating system. Final and primary energy values, fuel consumption and emissions of pollutants to the environment were determined for each of total twenty-two variants. The analysis carried out and the results obtained show that there is no logical relationship between the primary energy indicator, used for the energy assessment of buildings, and the energy intensity of the building and its environmental impact.

How Can the Circular Economy Contribute to Resolving Social Housing Challenges?

The construction sector stands as the predominant consumer of cement, steel, and plastic and is accountable for a substantial 55% of industrial carbon emissions. Greenhouse gases and other forms of pollution linked to the housing sector significantly contribute to the adverse environmental impact of the construction industry. This study underscores the need to incorporate pertinent issues into the Circular Economy (CE) agenda for a lasting and effective mitigation strategy. Through a Systematic Literature Review (SLR), this article explores answers to the research question: “How can the Circular Economy contribute to resolving social housing challenges?” The findings from this comprehensive review highlight that refurbishing the social housing (SH) built environment and formulating public policies targeted at the SH sector emerge as pivotal themes for effective solutions. The principles of the Circular Economy present a sustainable model that can play a crucial role in addressing the social housing challenge. In conclusion, this SLR demonstrates that Circular Economy principles offer a viable approach to tackling the social housing crisis. By embracing these principles, a sustainable model can be established to address the challenges posed by social housing, thereby contributing to the broader goal of environmental conservation in the construction sector.

Assessing the Energy Performance and Retrofit Potential of the 1980–1990s’ Residential Building Stock in China’s Jiangsu Province: A Simulation-Based Study

The building operation sector in China represents 22% of the national energy consumption and 22% of the carbon emission, of which urban residential buildings accounted for 24% in 2019. Such figures for the housing sector are projected to increase sharply in the near future, while China aims to peak CO2 emissions by 2030 and reach neutrality before 2060. To reduce the impacts of the urban housing sector and address the energy use and waste generated by large-scale demolition and reconstruction, the central government started promoting the energy retrofit of urban residential buildings, raising such policies to the national strategic level. Jiangsu Province is one of the most urbanised, with a rapid growth in the energy consumption of residential buildings. The Multi-Danyuan and Single-Danyuan Apartment built in 1980–1999 are the most representative residential types in its urban areas. While still adequate functionally, they were designed and built to low energy standards and show significant potential for energy retrofit. Nonetheless, their current performance and energy-saving potential are under-researched, while more detailed and reliable data would be critical to support retrofit design and policy making. This study investigates and characterises the typical use and energy performance of the two building types. Additionally, seven measures and six retrofit scenarios were identified based on the optimal energy reductions and regulations from selected countries. The simulations indicate that, without intervention, the energy consumption of the typical urban residential buildings can reach 122 kWh/m2 under the typical high-energy user scenario. By selecting a set of effective energy-saving measures, the operational energy use for heating and cooling can be reduced by up to 52.4%. Current local standards prove cost-efficient, although less effective in reducing energy use compared to international best practices, indicating potential improvements to the contribution of building retrofit towards achieving the national carbon reduction goals.

Housing cycle and firm investment: International firm-level evidence

The macro-finance literature provides conflicting views on how movements in housing price affect firms’ capital spending or R&D. We further explore this issue by analyzing a comprehensive international firm-level data set. We use the housing price component independent of firms’ investment opportunities and credit supply shocks. The results support the collateral channel as housing price and firm investment exhibit a positive relationship. This collateral channel is more distinct for capital expenditure than R&D, and in housing downturns when firms’ credit constraints bind. Nevertheless, housing appreciations are negatively associated with R&D and large housing booms are also detrimental to capital investment, which suggests a possible resource reallocation from the production sector to the housing sector during those phases. Small firms and firms with stronger investment opportunities respond more sensitively to housing price. Countries that rely more on bank financing and collateralized lending display a larger collateral effect in capital expenditure.

Market approach to provision of housing to low-income households in urban Malawi: a panacea or further dispossession?

Purpose The purpose of this study is to examine the effects of market-based approach to provision of housing to low-income households in urban Malawi. Design/methodology/approach This study was conducted in Blantyre, Malawi, between 2019 and 2022 and used both quantitative (household survey) and qualitative (in-depth interviews and document study) methods of data collection. Interviews were conducted with key players and investors in the housing sector. Household survey data were analyzed through descriptive statistics, which allowed the generation of descriptive housing valuables, whereas qualitative data were analyzed through content analysis. Findings This paper demonstrates that, rather than ameliorating the housing problems facing low-income households, the market approach to provision of housing in Malawi has worsened the housing situation in the country. This is so because the market approach to the provision of housing in Malawi is not only enforcing the logic of capitalistic accumulation in the housing sector but also supporting mechanisms of exclusion based on economic stratification within the community. Research limitations/implications Completeness of data over time as there is no market data bank available in the country. Practical implications The findings from this study suggest that some degree of state intervention in addressing the housing problem in Malawi is required. Social implications The study findings suggest that a market approach to the provision of housing can increase social inequality as low-income households face challenges in accessing housing. Originality/value There is a paucity of research on the effects of the market approach on the provision of affordable housing to low-income households in Malawi. This paper assesses this important policy gap and provides significant policy directions.

Could financialisation explain why developers are building more expensive houses? Evidence for Malaysia

Purpose The purpose of this paper is to examine the effects of financialisation on the changing structure of housing supply in Malaysia. The share of newly launched sub-MYR250,000 houses has been decreasing continuously in the past decade. This implies that housing developers are launching more expensive houses. The greater focus on higher cost housing could be attributed to inflation. But while input cost is rising, the housing sector has also become increasingly financialised. This claim can be supported by the rising share of mortgage and real estate loans in gross domestic product. Financialisation is a process in which the financial sector becomes more dominant relative to the real sector. The extent to which this process is responsible for the changing structure of housing supply in Malaysia is investigated. Design/methodology/approach A survey of the literature suggested that the decreasing the proportion of newly launched sub-MYR250,000 housing could be result of rising input cost, greater degree of financialisation and changing market concentration. Thus, long-run cointegrating equations were formulated and estimated. These equations linked housing share with financialisation, market structure and input cost. The quantitative and qualitative impact of financialisation on the structure of housing supply is of interest. Findings The analyses of secondary data suggested that financialisation and input cost did indeed contribute to the decrease in proportion of newly launched sub-MYR250,000 housing. However, the impact of market concentration on housing share was ambiguous. This conclusion survived several robustness checks. Practical implications The financialisation of the housing sector implies that developers are increasingly building for profits instead of accommodating the social objective of providing shelter. This result is unsettling because access to adequate housing is a human right. The transformation of housing from the concept of a shelter to a tradable, money-making asset could be a major contributor to the declining housing affordability in the country. Thus, efforts to improve affordability must take account of the effects of financialisation. Originality/value An empirical framework for assessing the changes in the structure of housing supply was developed. Existing studies tended to focus only on the volume of housing supply. It is a comprehensive study on changes in the structure of housing supply. Second, while existing studies on the financialisation of housing are mostly qualitative in methodology, this paper offers a quantitative assessment of the financialisation in the housing sector.

Using the integrated residential land use intensity index for more liveable, new Egyptian compound projects

This paper proposes the introduction of the integrated land use intensity index (ILUII) for new integrated urban residential projects in Egypt. This proposal is supported by previous studies and international experiences which have been used to formulate and calculate ILUII for housing sector developments. This index is also tested on a new Egyptian housing project for middle-income groups (an Arab Building Company [ABC] project). The testing focuses on assessing the role of ILUII and other indexes for achieving liveable communities. Furthermore, this paper investigates how this index could be applied to future housing projects in Egypt and could meet the goals and requirements of the state, residents and real estate developers.