Owner Occupation Research Articles

SHORT TERM RENTAL ACCOMMODATION (STRA) AND HOME SHARING: DIFFERENT TERMINOLOGIES TO ADDRESS LEGAL REQUIREMENT OF PLANNING PERMISSION

One of the debates on permissibility of short-term residential accommodation (STRA) is whether the nature of use of the building has significantly changed, with the operation of such business in the building. This led to the issue of whether planning permission is needed as this is a requirement in event of ‘material change of use’ of building. A home may be built as a one-family dwelling, but when it is converted to STRA use, it may be argued that it loses that character and contributes to unauthorized changes in neighbourhood character by intensifying the use both in terms of the number of people who typically use the property at any given time and by the negative impacts associated with frequent turnover. Basically, the main idea of planning permission is to ensure that there are no irregularities emerging from land use and development by individuals such as traffic jams, pollution, nuisance problems, loss of value or even amenities, floods or effects on the neighbourhood and ensures that the new development is suitable for occupation. This article suggests that one possible way to address the ‘change of character’ issue is by differentiating the types of short-term accommodation businesses based on the number of permitted bedrooms, guests, owner occupancy, number of bedrooms, location, and yearly maximum day-cap.

Effects of housing stability and contemporary mortgage lending bias on breast cancer stage at diagnosis among older women in the United States.

Interventions aimed at upstream factors contributing to late-stage diagnoses could reduce disparities and improve breast cancer outcomes. This study examines the association between measures of housing stability and contemporary mortgage lending bias on breast cancer stage at diagnosis among older women in the United States. We studied 67,588 women aged 66-90 from the SEER-Medicare linked database (2010-2015). The primary outcome was breast cancer stage at diagnosis. Multinomial regression models adjusted for individual and neighborhood socio-economic factors were performed using a three-category outcome (stage 0, early stage, and late stage). Key census tract-level independent variables were residence in the same house as the previous year, owner-occupied homes, and an index of contemporary mortgage lending bias. In models adjusted for individual factors, higher levels of mortgage lending bias were associated with later stage diagnosis (RR = 1.10, 95% CI 1.02-1.20; RR = 1.31, 95% CI 1.16-1.49; RR = 1.41, 95% CI 1.24-1.60 for least to high, respectively). In models adjusted for individual and neighborhood socio-economic factors, moderate and high levels of mortgage lending bias were associated with later stage diagnosis (RR = 1.16, 95% CI 1.02-1.33 for moderate and RR = 1.18, 95% CI 1.02-1.37 for high). Owner occupancy and tenure were not associated with later stage diagnosis in adjusted models. Contemporary mortgage lending bias demonstrated a significant gradient relationship with later stage at diagnosis of breast cancer. Policy interventions aimed at reducing place-based mortgage disinvestment and its impacts on local resources and opportunities should be considered as part of an overall strategy to decrease late-stage breast cancer diagnosis and improve prognosis.

Investigating inflation, living costs and mental health service utilization in post-COVID-19 England

This study investigates the association between price inflation and mental health conditions in the general population during the post-coronavirus disease 2019 (COVID-19) era in England, beginning from April 2022. Here, utilizing data from the Office for National Statistics and the National Health Service, we examined the association between price inflation, reflected by an official index ‘Consumer Prices Index including owner occupiers’ housing costs’ and the number of people in contact with mental health services across different age groups. Our findings revealed that, compared with the pre-COVID-19 period (August 2016 to February 2020), significant associations emerged between specific living costs (including costs for ‘food and non-alcoholic beverages’, ‘housing, water and fuels’ and ‘miscellaneous goods and services’) and mental health service utilization during the post-COVID-19 era. This association was particularly noted for adults aged 19–64 years and the elderly population aged 65 years and over. The results highlight the importance of addressing the potential causes of mental health issues in the context of rising living costs and can inform targeted social and economic policies, such as financial subsidies for food and non-alcoholic beverages and the need to scale up mental health services.

Behavioural drivers of long-term land leasing adoption: application of an extended theory of planned behaviour

AbstractIncreasing agricultural productivity while also protecting the environment, requires careful stewardship of the most important resource in production – land. Most land in Northern Ireland is controlled via owner occupation and granting access to others is a matter for careful consideration. Proprietorial caution, combined with custom and values attributed to land in the region has resulted in a pattern of tenure dominated by short-term rental agreements called conacre. An insecure, short-term land rental system, such as the conacre may be a disincentive to farmers in their decision-making around investing in land management and development, consequently resulting in reduced farm-level sustainability. In this study, we analysed the psychological and behavioural factors influencing farmers’ intention to take up long-term land leasing in Northern Ireland. To achieve our objective, we employed a mixed-methods approach and statistically analysed our quantitative data using an extended theory of planned behaviour (TPB) approach in a structural equation modelling framework. The results of our analyses showed that attitude, perceived behavioural control, subjective norm and perceived risk were statistically significant determinants of farmers’ intention to adopt long-term land leasing. The study results have important implications for the design of effective policies aimed at encouraging long-term land leasing through behavioural change to ensure sustainable agricultural production and effective land management.

Housing tenure and disability in the UK: trends and projections 2004-2030.

Housing is a major influence on health. Housing tenure is associated with housing conditions, affordability, and security and is an important dimension of housing. In the UK there have been profound changes in both housing conditions and the distribution of households by tenure over the past century, that is during the lifetimes of the current population. We firstly reviewed and summarise changes in housing conditions, housing policy and tenure distribution as they provide a context to possible explanations for health variations by housing tenure, including health related selection into different tenure types. We then use 2015-2021 data from a large nationally representative UK survey to analyse associations between housing tenure and self-reported disability among those aged 40-69 controlling for other socio-demographic factors also associated with health. We additionally examine changes in the association between housing tenure and self-reported disability in the population aged 25 and over in the first two decades of the 21st century and project trends forward to 2030. Results show that associations between housing tenure and disability by tenure were stronger than for any other indicator of socio-economic position considered with owner-occupiers having the best, and social renters the worst, health. Differences were particularly marked in reported mental health conditions and in economic activity, with 28% of social renters being economically inactive due to health problems, compared with 4% of owner-occupiers. Rates of disability have increased over time, and become increasingly polarised by tenure. By 2020 the age standardised disability rate among tenants of social housing was over twice as high as that for owner occupiers, with projections indicating further increases in both levels, and differentials in, disability by 2030. These results have substantial implications for housing providers, local authorities and for public health.

The Influence of Owner Characteristics on the Utilization of Yards in Planned and Unplanned Settlements

Yard is important for the community of Salatiga City. Salatiga City has two types of settlements, namely planned and unplanned settlements. The utilization of yards in both types of settlements differs. Therefore, this study aimed to examine the influence of yard owner characteristics on yard utilization, which was assessed by the visual condition of yards in planned and unplanned settlements. Yard owner characteristics were assessed by length of stay, age, and occupation. The sample selection method used was purposive sampling, with a total of 35 respondents. 10 respondents were from planned settlements and 25 respondents from unplanned settlements. The data analysis method used was Scenic Beauty Estimation (SBE), which was used to assess visual quality. Visual quality was divided into three categories: low, medium, and high. Subsequently, the Kruskall Wallis test was used to examine the influence of owner characteristics on yard utilization. The results showed that out of 10 yards in planned settlements, two yards were in the high category, five yards in the medium category, and three yards in the low category. Meanwhile, in unplanned settlements, out of 25 yards, 11 yards were in the high category, nine yards in the medium category, and five yards in the low category. The owner characteristic that influenced yard utilization was the owner occupation, which was seen from the Asymp. Sig. value <0.05, which was 0.049.

Mental and general health at the edges of owner occupation

PurposeThe purpose of this paper is to consider one test of a well-functioning housing system – its impact on wellbeing. Exploring one indicator of this, this study aims to track changes in mental and general health across a mix of tenure transitions and financial transactions in three jurisdictions: Australia, the UK and the USA.Design/methodology/approachUsing matched variables from three national panel surveys (Household, Income and Labour Dynamics in Australia, British Household Panel Survey/Understanding Society and Panel Study of Income Dynamics) over 17 years (2000–2017) to capture the sweep of the most recent housing cycle, this study adopts a difference-in-difference random-effects model specification to estimate the mental and general health effects of tenure change and borrowing behaviours.FindingsThere is an enduring health premium associated with unmortgaged owner-occupation. Mortgage debt detracts from this, as does the prospect of dropping out of ownership and into renting. A previously observed post-exit recovery in mental health – a debt-relief effect – is not present in the longer run. In fact, in some circumstances, both mental and general health deficits are amplified, even among those who eventually regain homeownership. Though there are cross-country differences, the similarities across these financialised housing systems are more striking.Practical implicationsThe well-being premium traditionally associated with owner occupation is under threat at the edges of the sector in all three jurisdictions. In this, there is cross-national convergence. There may therefore be scope to introduce policies to better support households at the edges of ownership that work across the board for debt-funded ownership-centred housing systems.Originality/valueThis paper extends the duration of a previous analysis of the impact of tenure transitions and financial transactions on well-being at the edges of ownership in the UK and Australia. The authors now track households over nearly two decades from the start of the millennium into a lengthy (post-global financial crisis) era of declining housing affordability. This study adds to the reach of the earlier study by adding a general health variable and a third jurisdiction, the USA.

Behaviors of Flippers, Rental Housing Investors and Owner-Occupiers in the Singapore Private Housing Market

We classify housing investors into flippers, rental housing investors and owner occupiers. We adopt the Singapore private housing transaction database between 2006 and 2010 to analyze their trading behaviors. The investigation period witnessed a full housing price cycle and had limited policy interventions. By comparing the trading behaviors of the three types of housing investors, we find that flippers can always buy at the highest price discounts and sell at the highest price premiums in housing transactions. Flippers show the highest propensity for trend chasing and act as momentum traders. When the housing market moves from its upward trend to a downward trend, flippers’ price discounts at buying increases, but their likelihood of buying decreases, while flippers’ price premiums at selling decrease, and their likelihood of selling increases. Rental housing investors show slightly higher price discounts at buying or price premiums at selling when trading with owner occupiers. However, they show a lower propensity for trend chasing than owner-occupiers. The findings have policy implications for anti-speculation policy designs.

Effects of housing quality, housing stability, and contemporary mortgage lending bias on breast cancer stage at diagnosis among older women in the United States.

e18557 Background: The purpose of this study was to examine the association between measures of housing quality, stability, and access on breast cancer stage at diagnosis among older women living in the United States. Methods: This study included 67,588 women aged 66-90 with data from the SEER-Medicare linked database. The primary outcome was breast cancer stage at diagnosis. Multinomial regression models were performed using a three-category outcome (stage 0, early-stage (I-II), late-stage (III-IV)). The key independent variables were median housing value, percentage living in the same house as the previous year, percentage owner occupied homes, and an index of contemporary mortgage lending bias (redlining). Results: In adjusted models, higher contemporary mortgage lending bias was significantly associated with later-stage diagnosis (RR = 1.10 1.02-1.20; RR = 1.31, 95% CI 1.16-1.49; RR = 1.41, 95% CI 1.24-1.60 for Least to High, respectively). Median housing value was inversely associated with later-stage diagnosis, but to a lesser degree than mortgage lending bias (RR = 0.88, 95%CI 0.80-0.96; RR = 0.77, 95% CI 0.68-0.88 for second and third tertiles, respectively). Owner occupancy and tenure were not significantly associated with late-stage diagnosis in adjusted models. Conclusions: Contemporary mortgage lending bias demonstrated a significant dose-response relationship with later stage at diagnosis of breast cancer in this cohort of elderly women. Policy interventions aimed at reducing the effects of redlining with the goal of decreasing late-stage breast cancer diagnosis to improve prognosis should be considered. Table. Relative risk of late stage breast cancer diagnosis based on measures of housing quality and stability, as well as redlining. Risk is relative to the base outcome, stage 0. Values for the first tertile of housing quality and stability as well as the “least” category for redlining are not shown in this table as they are the base outcome which the other values are compared to. Standard error was adjusted for MSA clustering effects in all models.[Table: see text]

Household preferences for private versus public subsidies for new heating systems: insights from a multi-country discrete choice experiment

ABSTRACT This paper employs demographically representative discrete choice experiments (DCEs) with owner occupiers in Poland, Sweden, and the United Kingdom (UK) to estimate the effects of subsidies, heating cost savings, installation time (reflecting ‘hassle costs’) and warranty length on owner occupiersʻ propensity to invest in a new heating system. In particular, the paper explores whether owner occupiers value subsidies received from public funding sources differently than subsidies received from private funding sources. The results from estimating mixed logit models suggest that respondents not only value subsidies for new heating systems because they decrease the net price, but they also value receiving a subsidy per se. For participants from Sweden (but not from Poland and the UK), this non-monetary value was found to be higher for subsidies offered by a public than by a private funding source. The results for heating cost savings in the three countries imply implicit discount rates between about 11 and 13%. We further find that respondents in Poland dislike longer installation times, and that respondents in all three countries value longer warranty times.

Parish level social factors predict population-based cervical cancer incidence in Kampala, Uganda, 2008–15: an ecological study

BackgroundThe burden of cancer in Africa is growing. Although cancer outcomes are understood as the product of influences at multiple socioecological levels, population-based studies of geographical factors and cancer outcomes in Africa are scarce. The objective of this study was to identify parish-level social factors associated with cervical cancer incidence in the Kampala Cancer Registry catchment area, using a novel linkage between population-based cancer registry data and small-area census data from Uganda. MethodsKampala Cancer Registry cervical cancer records (2008–15) were augmented to add the parish of residence at diagnosis. Parish-level population and housing profile data (2014) were obtained from the Uganda Bureau of Statistics and linked to Kampala Cancer Registry records. Stepwise forward Poisson regression modelling was used to estimate incidence ratios (IR) assessing associations between social factors and incidence. Housing tenure, infrastructure, gender equality, economic status, and employment were examined, controlling for population density. The significance level was set at α=0·05. FindingsFactors related to higher incidence included a higher girl-to-boy ratio of 6–12-year-olds not attending school (IR 1·33 [95% CI 1·15–1·54]; p<0.001), a higher percentage of 10–17-year-olds ever married (IR 1·22 [95% CI 1·06–1·40]; p=0·006) and a higher percentage of households receiving remittances (IR 1·03 [95% CI 1·00–1·06]; p=0·026). Factors associated with lower incidence included a higher percentage of household owner occupancy (IR 0·95 [95% CI 0·92–0·98]; p=0·002) and a higher percentage of households with piped water (IR 0·97 [95% CI 0·95–0·99]; p=0·009). InterpretationParish-level social factors predict cervical cancer incidence in Uganda. Communities most at risk are characterised by inequity in educational access for girls, higher prevalence of child marriage, low home ownership, inadequate infrastructure, and financial dependence. These communities would benefit from HPV vaccination and screening campaigns to prevent and control cervical cancer. Investments should be made to enhance population-based cancer surveillance and census data collection in Africa to offer new strategies and targets for cancer prevention and control. FundingMedical College of Wisconsin Cancer Center and Medical College of Wisconsin Office of Global Health.

Reconciling data-driven crime analysis with human-centered algorithms

This study combines traditional statistical methods with machine learning to better understand locally relevant, contextual models for analyzing crime in two urban American cities. Using census tracts as the units of analysis and controlling for several structural characteristics associated with crime, we find that in Milwaukee, Wisconsin, violent crime is associated with concentrated disadvantage, residential stability, ethnic heterogeneity, total population, and spatial lag of violent crime. Yet, the most important variable is the spatial lag of violent crime, followed by residential stability, ethnic heterogeneity, total population, and concentrated disadvantage. In addition, we find that in Chicago, Illinois, violent crime is associated with immigration, owner-occupied housing, proportion in professional occupations, and proportion population with college degree or higher, as well as ethnic heterogeneity, total population, and the spatial lag for violent crime. Machine learning models suggest that for Chicago's violent crime, the most important variable is the spatial lag term for violent crime, followed by total population, immigration, college education or beyond, owner occupancy, ethnic heterogeneity, and employment in professional occupations. The findings for property crime are similar: in Milwaukee, we find that disadvantage, residential stability, ethnic heterogeneity, total population and spatial lag for property crime are significant predictors in the traditional regression models. However, the most important variable for property crime in Milwaukee is the spatial lag term, followed by total population, ethnic heterogeneity, residential stability and disadvantage.The statistically significant predictors of property crime in Chicago include immigration, owner-occupied housing units, living in the same house, proportion of workforce in professional occupations, college education and beyond, total population, and the spatial lag for property crime. In Chicago, the most important variable for property crime is the spatial lag term, then the total population, the proportion of individuals in professional occupations, concentrated immigration, college education and beyond, living in the same house, and the proportion of owner-occupied housing units. Urban planners must consider policies that can effectively reduce nearby crime and violence in all cities that experience high crime levels, but also design locally responsive policies that make sense within a local context: in Milwaukee, residential stability matters more for violent crime than for property crime, while in Chicago, total population is similarly important for both violent crime and property crime. In Milwaukee, ethnic heterogeneity is similarly important for violent and property crime, while in Chicago, ethnic heterogeneity is not a very important variable for violent crime and it is not a significant predictor of property crime. Therefore, urban policy must differently approach social disorganization indicators and support the nuances of the local context for urban planning and policy.

Housing and economic inequality in the long run: The retreat of owner occupation

Finally, after a lengthy hiatus, the empirical facts of economic inequality need no introduction. In a blaze of publicity during a decade or more, the re-polarization of income and wealth across nearly half a century has been widely documented and is substantially uncontested. There is debate on whether incomes have peaked, no doubt that capital is back, and a great deal of speculation on what might happen next. What is surprising is the limited attention afforded to the pivotal role of housing. To address that gap, conceptually and empirically, this paper draws from panel surveys in three countries across two decades to locate residential property generally, and owner-occupation in particular, within a wider literature on the shape of economic inequality in the long run.

Locked-out: generational inequalities of housing tenure and housing type

PurposeThe purpose of this paper is to first explore whether Australia and the main metropolitan areas demonstrate significant differences in tenure and property type between generational groups. Second, whether the millennial generation is more likely to rent rather than own. Third, if such variation in tenure and property type by millennials is one of individual choice and lifestyle or the impact of housing market inefficiencies.Design/methodology/approachThis paper employs a comparative research approach using secondary data from the Australian Bureau of Statistics (ABS) to consider housing tenure and type distributions across generations as well as through cross-city analysis.FindingsThe results show that home ownership is still the dominant tenure in Australia, but private rental is of increasing significance, becoming the tenure of choice for Millennials. Owner occupation is shown to remain and high and stable levels for older generations and while lower in percentage terms for Generation X; this generation exhibits the highest growth rate for ownership. Significant differences are shown in tenure patterns across Australia.Originality/valueThe significance of this paper is the focus on the analysis of generational differences in housing tenure and type, initially for Australia and subsequently by major metropolitan areas over three inter-census periods (2006, 2011 and 2016). It enhances the understanding of how policies favouring ageing in place can contradict other policies on housing affordability with specific impact on Millennials as different generations are respectively unequally locked-out and locked-in to housing wealth.

Split incentives and endogenous inattention in home retrofits uptake: a story of selection on unobservables?

Imperfect information in rental sector and housing-induced returns heterogeneity among occupiers are typically estimated with cross-sectional single-equation models. This approach leads to the estimation of conspicuous wedges in insulation investment propensity between tenants vs owner–occupiers (≥20 percentage points) and low-return vs high-return dwellings households (0.10–0.20pp) in the UK. I analyse their sensitivity to assumptions on unobservables à la Oster (2019) and Cinelli and Hazlett (2020). According to the former’s parametrization, under equally strong observables and unobservables, the effect of split incentives on loft/wall insulation investment can be up to 40%/26% lower, while the effect of housing choices is unaltered. The latter’s strategy suggests that an equal selection scenario would reduce by at least 60% the split incentives estimates, whereas non-random housing would just cause the estimates to drop by less than one third. Hence, I quantify a certain degree of selection on research conclusions and offer some convenient tools to integrate in the assessment of the sources of under-retrofitting with cross-sectional data.

Assessment of Residential Buildings Condition In Government Built Housing Estates of Port Harcourt Municipality, Nigeria

A major key indicator for assessing the quality of an urban residential neighborhood is the building condition. A good building condition adds value to a neighborhood in terms of aesthetics, safety, security and comfort. The Rivers State Government has in 1986 - 1998 built 12 residential estates for her staff members in the study area. The responsibility of maintenance of the buildings has been left to the owner occupiers of those houses. What is the state of those houses which has been built for over 30years? It is on this note that this study is poised to ascertain the physical condition of buildings within the public housing estates in Port Harcourt municipality. This study is a quantitative research that belongs to the class called “descriptive research design”. Simple random sampling technique was used to select 108 respondents (household heads) from the six selected housing estates. Questionnaire, physical observation and digital camera were the tools used for data collection. Analysis of findings was presented descriptively in tables, charts and percentages. Among the twelve public housing estates identified within the study area, the simple random sampling method was used to select and study six of the estates which are: 1. Aggrey Housing Estate, 2. Marine Base Govt. Housing Estate, 3. Abuloma housing estate phase, 4. Ndoki Housing Estate, 5. Elekahia housing estate and, 6. Khana Street Housing Estate. The research findings show the physical condition of buildings within the public housing estates, 81.5% of the buildings has good foundation, 92.6% of the windows are in good condition, 95.4% of the buildings have water system. 65% of the respondents considered the overall housing condition of the estates as good (needs no repair) while 35% saw the housing condition as fairly good (needs minor repair).

Evaluating Housing Characteristics Associated With Childhood Lead Exposure in Providence, Rhode Island.

This research aims to take an in-depth look into the child, housing, and neighborhood characteristics associated with Providence children's likelihood of having elevated blood lead levels (BLLs). The 2019 Providence, Rhode Island, Property Tax Assessor's database, containing each property owner's address, was geocoded and spatially joined with the 2017-2019 blood lead tests for children aged 0 to 6 years from the Rhode Island Department of Health. The prevalence of elevated BLLs (≥5 μg/dL) overall, as well as by property type, number of properties owned, owner occupancy, assessed value, and neighborhood rates of old housing and poverty, was computed. We assessed the relationship between having elevated BLLs and these housing and neighborhood characteristics, adjusting for gender, age at test, and test method. We found that, compared with children living in properties with landlords who owned only one property, children living in properties with landlords who owned 4 or more properties had lower odds of having elevated BLLs (odds ratio = 0.98; 95% confidence interval, 0.97-0.99). The proportion of houses built pre-1950 in the neighborhood was associated with increased odds of elevated BLLs. There was no significant association between owner-occupancy status and property type with children having elevated BLLs. Children living in properties with landlords who owned 4 or more properties were less likely to have elevated BLLs. This association may suggest that the current lead legislation is having some impact, but public health efforts should address lead exposure in properties that are currently exempt from the law.

Measuring the housing sector’s contribution to GDP in emerging market countries

PurposeThis paper aims to document the economic importance of the housing sector, as measured by its contribution to gross domestic product (GDP), which is not fully recognized. In response to the joint economic and health crises caused by the COVID-19 pandemic, there is an opportunity for emerging market countries to develop and implement inclusive housing strategies that stimulate the economy and improve community health outcomes. However, so far housing does not feature prominently in the recovery plans of many emerging market countries.Design/methodology/approachThis paper uses national account data and informal housing estimates for 11 emerging market economies to estimate the contribution of housing investments and housing services to the GDP of these countries.FindingsThis paper finds that the combined contribution of housing investments and housing services represents between 6.9% and 18.5% of GDP, averaging 13.1% in the countries with information about both. This puts the housing sector roughly on par with other key sectors such as manufacturing. In addition, if the informal housing sector is undercounted in the official national account figures used in this analysis by 50% or 100%, for example, then the true averages of housing investments and housing services’ contribution to GDP would increase to 14.3% or 16.1% of GDP, respectively.Research limitations/implicationsFurther efforts to improve data collection about housing investments and consumption, particularly imputed rent for owner occupiers and informal activity require national government to conduct regular household and housing surveys. Researcher can help make these surveys more robust and leverage new data sources such as scraped housing price and rent data to complement traditional surveys. Better data are needed in order to capture housing contribution to the economy.Practical implicationsThe size of the housing sector and its impact in terms of employment and community resilience indicate the potential of inclusive housing investments to both serve short-term economic stimulus and increase long-term community resilience.Originality/valueThe role of housing in the economy is often limited to housing investment, despite the importance of housing services and well-documented methodologies to include them. This analysis highlights the importance of housing to the economy of emerging market countries (in addition to all the non-GDP related impact of housing on welfare) and indicate data limitation that need to be addressed to further strengthen the case for focusing on housing as part of economic recovery plans.

The Global Financial Crisis and transition out of homeownership in Korea

We investigate the impact of the 2008-2009 Global Financial Crisis (GFC) on housing tenure transitions in Korea, focusing on the determinants of pathways out of homeownership. Using Korean Labor and Income Panel Study (KLIPS) data covering the period 1999-2016, we analyze tenure transitions made by owner occupiers on the cusp of homeownership. The Korean case is interesting because an asset-based rental lease type, known as chonsei, and monthly rental leases with varying amounts of deposit, comprise the vast majority of private rental options. Western-style monthly rental leases account for a very small market share. Paying close attention to the availability of these private rental contract types, we investigate tenure transition by homeowners exposed to competing risks in the aftermath of the GFC. Estimates from the Cox single-hazard model suggest that, other things being equal, the hazard of homeowners’ transiting to a rental lease during the crisis years is 32% larger than during the non-crisis period. We also find that the effects of the crisis on transitions out of ownership depend on the types of private rental arrangements available to homeowners. Finally, about 50% of the ex-homeowners are still renters by the end of the 4th year, falling to 30% by the end of the 10th year after exiting from homeownership.

Mobility Constraints and Cycles in the Owner Occupied Housing Market

ABSTRACT Very little empirical attention has been given to the mobility constraints linked to accessibility to and upgrading within home ownership. Both are central to the operation of the housing market and can be seen within a framework of housing careers. This paper places them also in the context of changing housing market conditions and in particular the role of housing cycles. The research simulates, in purely financial terms, the behaviour of the average first-time buyers in each region of the UK over three decades. The analysis finds the accessibility mobility constraint is more psychological than financial but is also dependent on interest rates and the scale and duration of market downturns. The analysis of the upgrading constraint through housing cycles demonstrates that the ease of moving in the upturn fuels a boom but the subsequent inabilities to accumulate the capital necessary for such a move brings a long muted recovery.