Housing Investment Research Articles

Emerging financialization in Brussels: Institutional investment in niche rental housing markets

In recent decades, institutional investment in rental housing has expanded into a wider range of localities and rental market segments, thereby further pushing the financialization of rental housing. As investment in single-family homes, multi-family apartments, student housing, (former) social housing, co-living, mobile homes, nursing and care homes, Built-to-Rent developments, and short-term rentals is increasing, niche asset classes are being mainstreamed into the capital flows of global real estate markets. However, there is little research that, on one hand, goes beyond ‘mature’ and ‘primary’ institutional markets where rental housing financialization has emerged under rather exceptional conditions (such as mass-privatization of social housing and severe consequences of the Global Financial Crisis), and on the other hand, attempts to gauge institutional investment across the rental market, including across niche asset classes. Through an in-depth case study of the Brussels Capital Region, we examine how and under which market and policy conditions institutional investment flows into an emerging institutional market where investment primarily takes places in niche asset classes. While recent studies have argued that institutional investment in rental housing is limited and, therefore, financialization still a marginal phenomenon, we argue that an in-depth market-wide analysis of institutional investment strategies is necessary for understanding how and to what extent rental housing financialization takes place. Finally, we argue that the patterns of emerging financialization we observe in Brussels may be applicable to other cities as well.

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

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

The Impact of Regional Infrastructure Sector Investment on Economic Growth and Regional Inequality in East Kalimantan Province, 2012–2023

The study explores the impact of regional infrastructure investment on economic growth and regional inequality in East Kalimantan Province from 2012 to 2023. Motivated by the ongoing development disparities in Indonesia, especially outside Java and Sumatra, this research examines how infrastructure spending—particularly in public works, housing, and transportation—affects East Kalimantan’s economic growth and regional inequality. Using a quantitative methodology, the analysis leverages secondary data obtained from local government agencies. The research employs SPSS 23 for path analysis to evaluate relationships among variables, focusing on East Kalimantan’s fiscal allocations and their impacts on economic dynamics. The results indicate mixed impacts across sectors: while housing and transportation investments significantly promote economic growth, public works spending shows no significant effect.

The Spillover Effects of Public Attention and Real Estate Market: A Case Study from Shanghai, China

The real estate industry is closely linked to the national economy, and fluctuations in house prices have long been a major focus of public attention. This study explores the relationship between public attention and the real estate market, using public attention as a focal point. It systematically explains how public attention affects investment decisions in real estate. Taking Shanghai as a case, this study empirically examines the dynamic time-varying relationship between public attention and house prices, sales, investment and floor space completed by building a Time-Varying Parameter Vector Autoregression (TVP-VAR) model with data from 2011 to 2024.The research shows that the spillover index of house prices on public attention is positive and house prices acting as the sender of the shock, with rising house prices boost public attention. Conversely, the spillover index of public attention on house prices is negative, with public attention acting as the receiver of the shock. Based on the empirical results, it is recommended to incorporate public attention into the real estate market monitoring system, observe the real estate industry using multiple indicators, and enhance the regulation of online media to ensure policy transparency.

Russian-Ukraine War and its Impact on the European Economy

This study examines the impact of the Russian-Ukraine war on the economy of Europe, concentrating on trade disruptions, energy security, foreign direct investment (FDI) flows, and the socioeconomic ramifications of the war[1]induced refugee crisis. This study employs the descriptive research design, qualitative research method and a secondary source of data collection. The research uncovers the problems and possibilities coming from the war, as well as the larger implications for economic growth, development, and stability in the area. The results reveal severe interruptions to commercial links between European nations, especially Russia, and Ukraine, with key sectors such as energy, manufacturing, and agriculture facing considerable disruptions. Energy security emerges as a significant worry, spurring attempts to diversify energy sources and lessen dependence on Russian supply. Meanwhile, the war has resulted in a drop in FDI inflows to Russia and Ukraine, aggravating economic concerns in both nations and hurting their growth prospects. Furthermore, the research shows the burden on social welfare systems in European nations hosting migrants, since the inflow of refugees exerts great demands on resources and capabilities. Investments in housing, health care, education, and social welfare are vital for satisfying the different needs of displaced people and facilitating their long-term integration into society. However, issues connected to social cohesiveness, community connections, and political dynamics within host nations also occur. The study recommends diplomatic resolution of the dispute through peaceful discussions, involving European Union (EU) member states- Russia, Ukraine, and other parties. This could involve neutral mediation, de-escalating initiatives, and confidence-building measures.

How the marketing of real estate properties explains mortgage applicants by race and income

In this article, we study how the marketing of single-family homes explains the racial and income makeup of mortgage applicants in a neighborhood. We use a case study of the robust housing market of Charlotte, North Carolina, and annual, longitudinal real estate listing advertisements alongside mortgage lending data, to demonstrate how the share of properties advertised a certain way in a neighborhood in 1 year explains shares of mortgage applicants by race and income the following year. We classify property advertisement text using a semi-supervised learning algorithm into five categories following a housing investment and disinvestment to renewal continuum. We find stark racial disparities in mortgage applicants by housing type, even after controlling for income. We find that Black applicants nearly exclusively apply for mortgages in neighborhoods with a high share of properties advertised as disinvested with little profit-making promise. High-income White applicants rise as the share of advertised properties becomes more homogenous.

State Social Expenditures and Preterm Birth and Low Birth Weight in the US

Adverse birth outcomes in the US, including preterm birth and low birth weight, are strongly tied to socioeconomic disadvantage and disproportionately impact infants of Black mothers. Increasing investments in social programs represents a potential policy approach to addressing disparities in birth outcomes. To examine state-level associations of government expenditures on social programs with rates of preterm birth and low birth weight both overall and by race. This cross-sectional, ecological study was conducted among liveborn infants in the 50 US states between January 1, 2011, and December 31, 2019. Data analysis was performed from May 2022 to May 2024. Yearly state and local government expenditures per low-income person on social programs in the following categories: state refundable Earned Income Tax Credit; cash assistance; childcare assistance; housing and community development; and public health. Yearly state-level rates of preterm birth (gestational age <37 weeks) and low birth weight (<2500 g). From January 1, 2011, to December 31, 2019, there were 35.1 million live births in the US, of which 3.4 million (9.8%) were preterm and 2.8 million (8.1%) were low birth weight. Median (IQR) state social expenditures per low-income person were $1546 ($1074-$2323). Greater total state social expenditures were associated with lower overall rates of preterm birth (adjusted prevalence ratio [aPR] for every increase of $1000 per low-income person, 0.99; 95% CI, 0.97-0.999) but not with overall rates of low birth weight. In secondary analyses, greater state social expenditures were associated with lower preterm birth rates for infants of Black mothers (aPR, 0.96; 95% CI, 0.92-0.999). Greater state expenditures specifically on cash assistance (aPR, 0.64; 95% CI, 0.43-0.94) and housing and community development (aPR, 0.91; 95% CI, 0.84-0.98) were associated with lower preterm birth rates for infants of Black mothers. In this cross-sectional, ecological study, greater state-level expenditures on social programs were associated with reduced rates of preterm birth, particularly for infants of Black mothers. State and local governments may consider bolstering investments in cash assistance and housing and community development to address maternal and infant health disparities.

Towards sustainable living: an investigation of the motivations behind green residential ownership in Malaysia

Purpose In recent years, there has been a significant increase in the number of green residential properties. This phenomenon indicates that the demand for environmentally friendly residential properties is rising. However, the true reasons behind the growing interest and investment in green residential properties remain poorly understood. When it comes to residential properties, assessing these benefits becomes more challenging and complex, as it is crucial to understand the motivations to invest in green residential properties. Therefore, the purpose of this study is to identify the component factors that motivate homebuyers to invest in green residential properties. Design/methodology/approach This research aims to address a research gap by identifying the component factors that motivate individuals to invest in green residential properties using a factor analysis approach. The authors gathered data by distributing an online questionnaire among 161 certified green residential owners in Selangor, Malaysia. Findings The results from the factor analysis revealed three components as the primary factors that motivate individuals to invest in green residential properties. The findings contribute significantly to the growing yet limited literature in this area of research. Research limitations/implications This research, however, set out to provide a context-specific motivation in Selangor as a limitation. Originality/value By understanding the motivations behind these investments, the research can encourage greater adoption of sustainable housing investment and guide developers and policymakers in offering better solutions for the green property market. The authors could facilitate informed decision-making and inspire positive change towards a future where sustainable housing becomes the norm.

British Public Investment, Government Spending, Housing, and the Industrial Revolution: A Study of Governmental and Social Surplus Absorption

: When it comes to the British Industrial Revolution of the eighteenth century, much of the mainstream economics literature has tended to focus on how property rights, limitations on the crown or government, and changes in production techniques caused a big transformation in the nation’s economy. Marxian and other heterodox economics views acknowledge these developments but also emphasize the enclosure movement and the development of an exploited proletariat. Both sets of views acknowledge the role of the British government in facilitating the revolution, but in doing a review for this article, there is only a small amount of literature on how government investment and spending and the housing of workers may have helped spur the revolution. This is especially true within heterodox schools of thought, and this article aims to add to the heterodox literature by discussing how government investment and investment in housing assisted with surplus absorption during the Industrial Revolution, which in turn helped the British economy to achieve greater heights. Finally, it can be shown that this investment, in turn, would have helped business investment and spending in absorbing as much of the surplus as possible. Strong and sensible uses of government spending matter as much as free market ideology.

Does the size of the housing rental market stabilize regional economic fluctuations? Evidence from China's large- and medium-sized cities

The influence of the housing rental market on economic operations is a significant concern. Particularly in China, the rental market has been undergoing a transition from being disregarded to being valued. Based on an analytical framework referencing the three-sector theory of metropolitan economic growth, this study explores the impact of rental market size on regional economic fluctuations and its influence channels using a panel of 69 large and medium-sized cities from 2010 to 2019. The results indicate that increased rental market size is significantly correlated with decreased regional economic fluctuations through housing sales and labor market channels. Specifically, house price depression, house investment stability, labor allocation, and employment stability effects are crucial channels through which the size of the rental market influences regional economic fluctuations. In addition, the marginal effect of rental market size on regional economic fluctuations is smaller in cities with higher economic development. The conclusions imply that policymakers should not focus on how to unilaterally expand the housing rental market, but should strategically compensate for the defects of regional housing rental–related institutional systems.

APPRAISAL OF ROLE OF PUBLIC SECTOR AS AFFORDABLE HOUSING PROVIDER

Housing, besides being a very basic requirement for the urban settlers, also holds the key to accelerate the pace of development. Investments in housing construction industry have a multiplier effect on income and employment has forward and backward linkages to about 280 associated industries. The overall employment generation in the economy due to additional investment in housing construction is 8 times the direct employment. So, investment in housing is an effective instrument in the eradication of poverty in the sense that it helps growth in the productivity of the poor, and supports growth of economy, which is otherwise not achieved through subsides and in turn helps in safeguarding the future of our cities by making them slum free and ensuring planned future development. This paper aims at discussing some of the important issues relating to affordable housing that would lead to sustainable urban development in India, with special reference to Amritsar city. It deals with the housing shortage in affordable housing segment and further increase in shortage of such housing and the increasing gap between supply and demand of affordable housing with special reference to Amritsar.

Implementation of Construction Management Approach for Improving the Productivity of RMC Plants

Our has been traditionally labor oriented. The pace of mechanization in the past has been very slow due to the availability of cheap labor in abundance, lack of capital investment and the highly fragmented nature of the construction industry. The degree of mechanization is still around 25%-30% while it is well above 70% in most of the developed countries The liberalization of Indian economy from 1991 onwards paved the way for large scale investments in infrastructure, industrial, housing and agriculture sectors. The new age constructions required speed and superior quality to obtain profitable life cycle cost of the projects. The emerging scenario helped to increase the pace of mechanization and facilitated the establishment of RMC plants on commercial scale to synchronies with the overall development strategy. RMC in India on commercial scale started in 1993 at Pune with only one plant. It has achieved nearly 15% share of the total concrete produced in the country. In some major cities, like Bangalore, Hyderabad, Mumbai and Chennai the share of RMC has reached as high as 50% to 60%. The growth prospects of RMC in India are enormous, provided requisite support is provided by the regulatory authorities, consumers and decision makers during its formative years. In this project the critical factor causing improving productivity will indentify.

Immigrant labour, rural economies, and the question of housing

AbstractThere is a renewed interest in policy initiatives that aim to ruralize and regionalize immigration in Canada. These efforts are visible through temporary foreign worker programs linked to Provincial Nominee Programs, as well as the increase in the number of refugee resettlement programs in smaller communities. Against this backdrop, cities in Canada are experiencing a housing crisis. There is a tacit assumption that immigrants in smaller and more rural settings will fare better with respect to housing. This paper examines the assumptions underpinning efforts to ruralize and regionalize immigration—namely that immigrants to smaller centres will find more affordable and available housing. By presenting two case studies of small towns that have successfully leveraged immigration to meet their labour market needs, this paper demonstrates that housing remains a critical issue for newcomers, even outside of large urban centres. Further, the paper argues that discussions about housing need to be linked to broader policy conversations about immigration and labour, especially in contexts where transnational corporations leverage immigration and temporary labour programs to secure their workforce, without parallel investments in infrastructure and housing.

Remitted euros are not equal: The complex spending behaviour of Kosovar households

AbstractThis article uses a mixed‐methods approach to evaluate how remittances impact household spending behaviour in Kosovo. Based on a nationally representative data set and using matching techniques, it shows that migration does not cause substantive changes in household spending. While remittances cover basic consumption needs, there are no impacts on budgetary allocations for business investments, health and education. Yet, qualitative research conducted in Kosovo's Opoja region, involving the analysis of 28 open‐ended interviews, unveils a complex remitting mechanism. While migrants send smaller but regular amounts of money to cover basic needs, earmarked transfers are allocated for housing investments and conspicuous consumption only. These earmarked transfers do not enter Kosovar households' budgets, as migrants exercise decision‐making authority over these funds. For policymakers, our findings suggest that standard survey questions fall short of capturing the complexity of the remitting mechanism. When promoting productive investments, it is the migrants who should be targeted as key decision‐makers.

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

What does housing collateral mean for Hong Kong economy? From the perspective of modelling and policy implication

This paper studies the housing sector of Hong Kong and the role of collateral constraint in modelling Hong Kong economy, through the lens of a small open economy DSGE model with a currency board exchange rate commitment. By estimating and evaluating the model by Indirect Inference over the sample period of 1994Q1–2018Q3, it is found that the collateral model can match data behaviour. Comparing with the tests generated from the model without collateral, collateral model can match the housing price data better, while the model without collateral fits the general price better. Since collateral constraint acts like an additional transmission channel, it enhances the impact from shocks and housing price is highly determined by housing demand. We further investigate LTV policy, finding it could be applied as macroprudential policy, especially when addressing the problem caused by increase in the US interest rate and the burst in the domestic housing demand, but the government should watch closely to the crowding out effect from export to housing demand and housing investment.

Impact of the COVID-19 pandemic on commercial housing demand in Vietnam

Purpose The study aimed to determine the impact rate of the COVID-19 pandemic on Vietnam’s commercial housing demand as compared to other factors and proposes several policies to increase housing demand as a result of the pandemic. Design/methodology/approach The study randomly investigated 400 homebuyers during the COVID-19 pandemic. The structural equation model, SPSS20.0 and AMOS24.0 software were used to determine the impact of factor groups on housing demand. Findings The COVID-19 pandemic has a second impact after housing prices on commercial housing demand, followed by 10 other factors. The impact rates of factors range from 3.45% to 15.74%. Research limitations/implications The study has only determined the extent of the impact of the COVID-19 pandemic on housing demand in Hanoi city, so it is necessary to continue to study this issue in other provinces and cities of Vietnam. The proposed research method would be consulted when it is necessary to determine the factors affecting housing demand in other countries around the world. Practical implications The study proposes some implications related to commercial housing demand in the context of the COVID-19 pandemic such as fighting the epidemic, supporting housing investors; reducing loan interest rates; increasing the time to pay for housing; supporting enterprises to stabilize production; strengthening real estate brokerage and carrying out administrative procedures online. Social implications Investors and the State can use the implications to make the right housing decisions to provide housing for people and maintain social stability. Originality/value To the best of the authors’ knowledge, this paper presents for the first time a method to determine the impact of the COVID-19 pandemic on commercial housing demand in Vietnam. The paper also points out some specific factors affecting commercial housing demand that are different from those shown in previous research.

Studi Kelayakan Investasi Proyek Pembangunan Perumahan Citra Harmoni Desa Sukamakmur Kecamatan Sukajadi Kabupaten Lebak

Housing is a group of houses or other buildings built together as a single development. The form varies from country to country. Housing is usually built by a single contractor with only a few house or building design styles, so that the appearance is uniform. In Asian cities such as Singapore, Kuala Lumpur, Hong Kong, Shenzhen and Seoul, housing includes high-density tower blocks with or without commercial facilities. Meanwhile, Indonesia is one of the profitable countries for housing development. Home investment is a form of investment that is profitable in the long term. So it's not surprising that many people are interested in doing it. Houses have a stable value when compared with other investment instruments. It will not decrease even if inflation occurs. Property investment is an investment aimed at getting a return on investment or return on investment by utilizing a property. Knowing the value of housing investment returns, many business people invest in property. So it is necessary to analyze the feasibility of investment and the parameters that influence investment in this project and also the characteristics of consumers. Citra Harmoni Housing, which is located in Sukamakmur village, Sukajadi subdistrict, Lebak Regency, is a housing project whose investment feasibility we will calculate. From the analysis results of this project, the NPV calculation value for the housing project is IDR 35,913,597,917, which is certainly greater than 0, indicating that this housing project activity has financial benefits. The calculated value of the internal rate of return (IRR) is 36.943%, which is higher than the interest value of 10.9%, indicating that this housing project has a high rate of return and can be a profitable investment opportunity. The results of the Payback Period (PP) calculation show that the time required to return the initial capital in this project or investment is 1 year 7 months.

Residential transformations and real estate market trends associated with tourism activity in urban popular sectors: Ciudad Bolívar in Bogotá

Purpose This study aims to identify the transformations of the residential landscape and trends in the popular real estate market associated with tourist activity in a low-income neighborhood in Bogotá. Design/methodology/approach The methodology was mainly qualitative, although the author analyzed some quantitative data. The author conducted three guided tourist tours in the area and systematically compared photographs taken in 2022 with satellite images in 2019 before starting the tourist activity. To analyze the real estate market, the author uses data on housing offers for sale and rent. Finally, the author conducted semi-structured interviews with tour guides, residents and other key actors in the sector. Findings This study identified some dynamics of change in the real estate market, particularly associated with an increase in housing sales and rental prices, as well as a possible effect on the increase of new informal growth processes. The author found a growing transformation of the urban and residential landscape associated with the painting of facades by the local administration and mural painting processes by community organizations. There are evident housing investment processes, some associated with verticalization and other use changes for tourism activities. It is necessary to reflect on these processes’ effects on the city’s sociospatial dynamics. Originality/value This study makes an empirical contribution to the relationship between residential real estate markets in low-income sectors and tourism activity. Although analyses of community-based tourism in popular areas have been conducted, less is known about the effects on the real estate market and the associated sociospatial transformations.

Trust in the pension system and housing investment

PurposeThis research contributes to the existing literature on the connection between trust and investment activities by exploring the effect of trust in the retirement system on dwelling investments.Design/methodology/approachThis study utilizes data including 28 OECD countries from 2009 to 2020, and employs panel fixed effects and GMM estimators.FindingsThe analysis reveals a negative relationship between trust in the retirement system and investment in dwellings. Notably, this is found to be more evident in countries that promote neo-liberalized welfare systems.Practical implicationsThe implications of our results are particularly relevant for policymakers and international construction firms.Originality/valueThe primary contribution of this paper extends the “trust–pension investment behavior” nexus. We explore whether individuals with diminished trust in the retirement system consider investing in the property market as an alternative means to safeguard their financial well-being during retirement.