Housing Investment Research Articles

Are remittances a solution to housing issues? A case study from Sri Lanka

The objective of this paper is to analyze the impact of remittances on four different aspects of housing investment – expenditure, affordability, quality and household assets in Sri Lanka. Housing expenditure is calculated based on the household expenditure on housing rent, house building or repair cost, and utility bills, while housing affordability is measured by shelter poverty index. The housing quality index is developed based on the structure of the dwelling unit, housing services, and the location. An overall assets index was developed using 45 household assets. The house's location is crucial to enhance the quality of housing, location-based characteristics were considered in constructing the housing quality index. Receiving remittances has a self-selection issue since it is not a random process. The propensity matching score method was employed in the current study, overcoming the issue of self-selection. The study finds that though there are differences between sectors and income groups, remittances positively and significantly affect housing expenditure, affordability, and assets, but the impact on housing quality is minimal. The findings give insight into the areas, in which policymakers can focus to improve the impact of remittances on different aspects of housing and thereby reach SDG targets of “leaving no one behind”.

Short-Term Forecasting Housing Investment: An Averaging Approach from a CEE Country

Short-Term Forecasting Housing Investment: An Averaging Approach from a CEE Country

ANALISIS INVESTASI PERUMAHAN PURI MAHKOTA MUKTIWARI DI KABUPATEN BEKASI

As the population grows rapidly and the standard of living increases, the demand for housing will increase. One way to meet housing needs is to build housing. Housing development must be in accordance with careful planning in determining the investment model to be made in housing development. The initial stages of housing development start from surveying the location, number and type of houses to be built, marketing, to selling to consumers. The housing development process must also be calculated economically with the investment method, to find out whether this housing can be economically profitable or not. Based on the calculation of investment analysis with an investment period of 6 years, the Net Present Value (NPV) is Rp. 33,716,228,908 (NPV0), the Internal Rate of Return (IRR) is 23,18% (IRRMARR), Payback Period (PP) in the 3rd year to 11th months is smaller than the 6 year investment period, Benefit Cost Ratio (BCR) is 1.42 (BCR 1), and Break Event Point (BEP) gets a percentage for type 30/60 of 90% with 132 units, type 36/60 by 69% with 207 units, type 36/72 by 56% with 172 units, and type 48/84 by 48% with 32 units. And from the sensitivity analysis results it is known that housing investment Puri Mahkota Muktiwari will still be feasible if the increase in investment costs is less than 20.15%, the decrease in the occupancy rate is not more than 16.74%, the decrease in the selling price level is not more than 16.7% and the increase in loan interest rates is less of 122.22%.Keywords: Investment Feasibility,Housing, industrial estate, Investment analysis, Sensitivity Analys

Problems of Acquiring Home Ownership Through Investment Housing Building

Problems of Acquiring Home Ownership Through Investment Housing Building

Development of new sustainable urban complexes: an entrance to the development and sustainability of investment housing complexes in the city of Najaf (Qaryat Al Ghadeer residential complex as an applied case)

The idea of sustainability has become a necessity in various fields, especially in the urban environment, where it has emerged as a solution to the many problems facing cities. For that, it is necessary to identify the nature of sustainability in general and urban sustainability in particular and how to achieve it in the Al-Ghadeer residential complex. Therefore, the research focuses on the problem of what are the criteria of urban sustainability when planning residential complexes. How close is Al-Ghadeer residential complex to achieving urban sustainability, where it concluded that Al-Ghadeer residential complex suffers from not being close to achieving urban sustainability due to its deviation from the sustainable standard, which is reflected in the study area and its inability to provide a suitable urban environment for the residents and other desirable characteristics in an urban environment?

서울 주택구매력지수의 변화가 지방거점도시 주택시장에 미치는 영향에 관한 연구

This study attempted to derive the effect of changes in the Seoul Housing Purchasing Power Index on apartment prices in Jeonju, one of the representative non-metropolitan base cities, and to understand its meaning. The analysis method used VECM in consideration of the characteristics of the variables measured in time series. The summary and implications of the results of this study are as follows.
 First, the change in housing purchasing power in Seoul was found to be one of the main variables affecting apartment prices in Jeonju, a local hub city, and in particular, it was found to have a significant impact on the lag behind. In other words, if housing prices in the Seoul metropolitan area soar and housing investors' ability to invest in the Seoul metropolitan housing market decreases, it is interpreted that they are interested in the apartment market in local hub cities with relatively high price advantages over some time difference. Second, it was found that the change in the population had the greatest effect on apartment prices in Jeonju. Finally, unlike research results on housing prices in Seoul and the metropolitan area, changes in major macroeconomic environments such as total currency, economic growth, and consumer price index did not significantly affect housing prices in Jeonju. This result is judged to be because the level of housing prices is very low compared to the metropolitan area, and the merit as an investment good or an inflation hedge is not high.

Human Development and Macroeconomic Shocks in Nigeria: An Empirical Investigation

This paper explores how human development responds to selected macroeconomic shocks in Nigeria. The study employed the Sen’s capabilities approach as the analytical approach and posited that the level of education, health status, quality of investment, technology, and government fiscal and monetary policies are plausible determinants of human development. We used the Structural Vector Autoregression (SVAR) to estimate the responses of such selected shocks, which are inflation, interest rate, government capital expenditure, exchange rate, current account balance, and savings shocks. The Forecast Error Variance Decomposition (FEVD) and the Impulse Response (IR) showed that a fiscal policy shock is the major factor influencing human development outcomes. This finding underscored the important role government plays in enhancing the well-being of its citizens. Fiscal policy tools (such as investment in education, health, housing, and infrastructure) are essential for human development. In particular, the human development outcome is found to respond positively to shocks from real interest rates, which are felt significantly in the short run. We concluded that human development is negatively affected by a sudden decline in the federal government’s capital budget expenditure.

Government debt and household wealth inequality: evidence from China

This study attempts to explain the relationship between government debt and household wealth inequality, and further discusses possible channels of influence to provide ideas for mitigating the increasing gap between rich and poor. This study puts forward relevant assumptions in the theoretical model, further analyses the composition of household wealth, and verifies that household housing investment is an essential factor. This study finds that the expansion of government debt raises the price of housing, leading to faster wealth growth for wealthy households with relatively more real estate and widening the gap between rich and poor. This study argues that in economic development, government debt should be tilted towards livelihood protection and infrastructure construction, providing guaranteed housing to eligible relatively poor and narrowing the gap between rich and poor to a reasonable extent.

Rejuvenating the Market for Earth-Based Building Construction Materials in a Developing Economy

Earth-based materials are useful in building and engineering construction projects globally, but they have largely remained unextracted and wasted, and their use has been limited to rural areas and avoided in modern buildings in the cities. The sustainability market in developing countries is still largely unsaturated and undertapped. This situation is blamed on lack of knowledge of the potential, benefits, and characteristics of green and sustainable building materials. This study aimed at determining the benefits of earth-based materials that could lead to the rejuvenation of the market for their adoption in building construction projects in the urban areas of a developing economy. The study adopted a structured questionnaire administered via electronic means to construction experts using the snowball sampling technique in Nigeria. With a response rate of 62.94% and a reliability index of over 0.90, the gathered data were analysed using frequency, percentage, and exploratory factor analysis (EFA). The study revealed that the main clusters of benefits of earth-based materials that can stimulate the market for these materials in urban areas are "cost and pollution-related benefits," "emissions and environmental benefits," "waste and workability benefits," "sound and fire-related benefits," and "thermal insulation and resource efficiency." The study recommended that housing investors, clients, and stakeholders should capitalise on the availability of large quantities of earthen materials to improve the quantity of housing provisions in cities and urban areas.

Pandemic mobility, second homes and housing market change in a rural amenity area during COVID-19 – The Brecon Beacons National Park, Wales

The Covid-19 pandemic has been presented as a critical change driver for rural amenity areas, precipitating urban flight and a decentralisation of housing choice and investment. House prices in both near-urban and more distant rural markets saw considerable growth in 2020 and 2021, linked to a mix of second home investment, expanded demand for holiday letting, migration to exploit flexible-working opportunities, and homebuying for early retirement. These demand-side pressures, apparently accentuated by the pandemic, combine with supply-side constraints on development in rural areas (which can accommodate a limited amount of additional housing) to produce significant housing stress. However, processes affecting some areas, in different parts of the world, have arguably been generalised to all areas, and localised processes remain under-investigated. This monograph explores the experience of the Brecon Beacons National Park in Wales, UK – an amenity area with good connectivity to a number of major urban centres and therefore sources of extra-local housing demand. Focusing on second home buying, as a leading element of extra-local pressure in amenity areas, the monograph considers the particular circumstances of this area. It shows that a combination of amplified demand-side factors, linked to the pandemic, and heightened supply-side constraints, due to a phosphate crisis affecting the National Park’s major river catchments, requires a programme of actions that extends beyond the housing domain in order to resolve escalating housing market challenges and associated community and economic risks.

Does safer housing save lives? An analysis of typhoon mortality and dwellings in the Philippines

Storms globally account for the highest loss of life among weather-related natural hazards. This study examines the relationship between components of housing vulnerability and typhoon related mortality in the Philippines at a municipal level between 2005 and 2015 using a Hurdle Negative Binomial (HNB) model. We find that in municipalities with greater prevalence of extreme substandard housing, unimproved household water sources, crowdedness, lower housing density, and less secure tenure, people are more likely to die from typhoons when controlling for typhoon proximity and wind speed as well as coastal proximity. We recommend targeted investments in safer housing in municipalities of Region VIII, Region XI and the Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) where correlations between housing vulnerability and disaster mortality are the highest. This research provides new knowledge of the link between housing and mortality in disasters, offering one of the first national scale assessments to quantify the contributions of safer housing in reducing loss of life in disasters.

Can a basic income help address homelessness? A Titmussian perspective

Homelessness is a worsening problem across the developed world and existing policy responses are failing to have an impact. This article considers whether a basic income (BI) can play a role in radically overhauling prevailing homelessness policy and interventions. Drawing on Richard Titmuss’ classical arguments about the value of universalist welfare, I argue that a BI can play a role, but only as part of a suite of universalist measures that includes large-scale social housing investment and rent controls. I highlight how a BI can help address the ‘income side’ of the housing affordability problem driving homelessness, but must be coupled with other measures that address housing cost and supply. I also consider how a BI can reduce stigma arising from targeted homelessness measures. I conclude by arguing that addressing homelessness requires us to transform the logic of welfare provision and that a BI can help do this.

Governing regional affordability: rethinking the production of affordable spaces across the Metropolitan Region Amsterdam (MRA)

ABSTRACT The Covid-19 pandemic has coincided with increased residential property investment outside the Amsterdam urban core and the ongoing departure of residents into its surrounding, more affordable metropolitan area. Underlying these developments, we have found increased regulatory efforts scattered across diverse public administration scales to improve housing delivery and access throughout the metropolitan region. Within these increasingly complex landscapes, we argue there is an urgent need to develop coordinated regional governance mechanisms to respond to fragmented regulatory efforts and dynamic residential investment landscapes to ensure long-term affordability and accessibility to housing across the region. We introduce an approach to affordability that centres on regional governance, moving away from popularized urban-centric interventions to affordable housing delivery and investment.

News-Driven Housing Booms: Spain Versus Germany

Abstract We investigate how the economy responds to anticipated (news) shocks to future investment decisions. Using structural vector autoregressions (SVARs), we show that news about the future relative price of residential investment explains a high fraction of the variance of output, aggregate investment and residential investment for Spain. In contrast, for Germany it is the news shocks on business structures and equipment that explain a higher fraction of the variance of output, consumption and non-residential investment. We confront the identified shock with other shocks to provide evidence that our structural interpretation is valid. Then, to address our empirical findings, we propose a stylized two-sector model of the willingness to substitute current consumption for future investment in housing, structures or equipment. The model combines a wealth effect driven by the expectation of rising house prices, with a reduced-form friction in labor reallocation. We find that the model calibrated for Spain displays a response to anticipated house price shocks that stimulate residential investment, whereas for Germany those shocks enhance investment in equipment and structures. The results highlight the propagation mechanism of anticipated shocks to future investment, which is consistent with the housing booms in Spain and their absence in Germany. Such a mechanism complements a view relying on a combination of monetary, financial or housing supply and demand, surprise shocks.

Spatiotemporal Evolution and Cause Analysis of Urban Housing Investment Resilience: An Empirical Study of 35 Large and Medium-Sized Cities in China

In this study, we explore the evolution and formation mechanism of urban housing investment resilience from three perspectives: theoretical analysis, model construction, and empirical testing. Based on the three-element theory of investment decision making and urban resilience system theory, a theoretical framework of urban housing investment resilience is constructed. Spatiotemporal analysis and qualitative comparison methods are used to divide 35 large and medium-sized cities into two categories, first-tier and non-first-tier cities, and their spatiotemporal characteristics and differences in terms of formation mechanism differences then explored. The results show that (1) the overall housing investment resilience of the 35 investigated cities is low, with the characteristics of periodic evolution, and there are obvious differences between the first-tier and non-first-tier cities as well as unbalanced development problems. (2) The three internal investment decision factors of returns, costs, and expectations and the five external support factors of economic growth, infrastructure development, labor market, policy regulation, and monetary policy do not, by themselves, constitute the necessary conditions for high levels of urban housing investment resilience, and there are three paths for the development of high levels of housing investment resilience in both first-tier and non-first-tier cities. (3) The twos types of cities have the same conformational path of "return- and cost-driven" but different dedicated conformational paths, including "cost-driven", "expectation- driven", and "return- and expectation-driven", and the core conditions in their driving paths are different, with real estate policy being the core condition in the path of first-tier cities and infrastructure development and labor markets being the core conditions in the path of non-first-tier cities. (4) There is a potential substitution relationship between the three configuration paths of first-tier and non-first-tier cities, and the substitution relationship between the two types of cities is also different. The findings of this study reveal that the complex interaction between the urban resilience system, represented by infrastructure construction, and multiple factors, including the three elements of investment, can have an impact on the resilience of real estate investment.

The Political Economy of Housing Investment in the Short‐Term Rental Market: Insights from Urban Portugal

AbstractShort‐term rentals (STRs) emerged as holiday accommodations, disrupting the hospitality industry in the decade before COVID‐19. Mainstream explanations for their growth revolved around digital tourism platforms like Airbnb as market disruptors and the sharing economy rationale. At the same time, critical scholars explored the capitalisation of greater rent gaps in urban central locations. However, these explanations are insufficient to explain the growth of STRs. We supplement them by building bridges between the urban political economy and the geographies of financialisation through the cases of Lisbon and Porto before the pandemic. The paper focuses on tourism‐induced housing investment, taking a closer look at the profile of investors in association with STR property managers in the context of the late‐entrepreneurial urban regime. We conclude that tourism development has allowed opportunities for housing financialisation through STR professionalisation, enhancing the allocation of interest‐bearing capital in tourism‐oriented real estate.

정부의 주택정책과 개인 투자성향이 투자만족도 및 재투자의도에 미치는 영향 연구

This study analyzed using a structural equation model to analyze the impact structure of the government's housing policy and individual investment propensity on investment satisfaction and re-investment intention for investors with housing investment experience among MZ enerations who emerge as an important investment class at various rapid changes in the housing market. As a result, supply policy characteristics were derived in the first place, location characteristics in the second place, financial policy characteristics in the third place, tax policy characteristics in the fourth place, and economic characteristics in the fifth place, and environmental characteristics did not have a significant effect. This study has theoretical and academic significance in terms of diversity and differentiation of the study in that it conducted the study on specific subjects such as the actual investment experience in the housing market and the MZ generation.

Gun violence in K-12 schools in the United States: Moving towards a preventive (versus reactive) framework

Intentional shootings in K-12 schools in the U.S. persist as a public health problem. The number of shootings in K-12 schools has increased precipitously since 2017. And with approximately 100,000 K-12 public schools nationally serving 51 million children, investing in a comprehensive gun violence prevention strategy is critical. Unfortunately, our current school gun violence prevention approach almost exclusively centers reactive strategies that are in place to respond to acts of gun violence in the moment, rather than preventive strategies that would prevent them from occurring at all. Reliance on these strategies alone, however, is not sufficient. In line with the core tenets of public health prevention and the Whole School, Whole Child, Whole Community model, we present a more expansive school gun violence prevention framework that broadens the spectrum of what constitutes “school gun violence prevention.” Our work highlights how enhancing basic neighborhood and school structures—including investments in public libraries, affordable housing, and universal school-based violence prevention programs—are key to both preventing gun violence and promoting well–being. We also highlight the role of stricter gun laws, reasonable school security efforts, bystander interventions, building awareness within school communities, and meaningful investments in early interventions and mental health services. Children, who have been tragically exposed to any number of adverse experiences in the wake of the COVID–19 pandemic, deserve more reasoned choices and large-scale investments in understanding and cutting off the root causes of school gun violence; not just a reliance on strategies that focus on what to do in the moment of a violent act. As gun violence in K–12 schools persists, we must reframe the discourse about school gun violence around prevention, not reaction.

Constraints of buffalo farming in Kallakurichi district of Tamil Nadu, India

A study was conducted to identify the constraints perceived by the buffalo farmers in Kallakurichi district of Tamil Nadu. For this study, data were collected from the randomly selected buffalo farmers by using a structured interview schedule. The present study indicated that the major constraints faced by buffalo dairy farmers were high cost of concentrates (63.82% Garrett score), followed by high capital investment in animal housing (53.64% Garrett score), Low conception rate (58.92% Garrett score) repeat breeding (60.20% Garrett score), lower milk price 64.34% Garrett score), Unavailability of credit facilities from government side (50.80% Garrett score), high cost involved in veterinary care (56.28% Garrett score) and reproductive disorders (48.70% Garrett score).

Value ‘stripping’: Affordable housing, institutional investment, and the political economy of municipal debt

In this commentary, I examine the role of institutional investors in affordable housing production in England, reflecting and expanding on the papers in this special issue on the governance of residential investment. Drawing on my research on the politics of municipal debt and local authority housebuilding in London, I provide a snapshot of the key regulatory changes that have enabled insurance companies, pension funds, and other institutional investors to extract profits from social and affordable housing. I also explore the politics and relations of power that underpin this transformed environment through a discussion of investors’ lobbying activities, and through an analysis of ‘income strip deals’, long-term leasing agreements between investors and local authorities that have gained popularity in recent years. In line with the authors in this issue, I argue that to grasp the recent wave of institutional investment in public housing, we need to pay attention to the narrative framings through which the promise of patient capital is enacted and legitimised, and to the range of regulatory actions mobilised to support and maintain the flow of value to rentiers.