Homeownership Rates Research Articles

The Church of Nazarene in Khayelitsha: Developing a missional spatial consciousness with special reference to COVID-19

The legacy of apartheid spatial planning can still be seen in the dynamics of spaces in South Africa today. The elite (according to research is racialised and mostly white people) lives in well-located city areas, close to economic activity and rule social life that defines cities as stated in 2016 by the Socio Economic Rights Institute of South Africa (SERI). Alternatively, mostly black South Africans are confined to urban margins in densified and poorly serviced areas, with low rates of home ownership. The effects of these policies extend beyond the urban nature, as spaces on the margin by design tend to have fewer opportunities for education compared to urban areas, and there are spatial limits to black business ownership. This article seeks to discuss a case study on a church’s use of space during coronavirus disease 2019 (COVID-19), to show an inclusionary spatial dynamic that may be used in South African spaces. Firstly, it presents an overview of the unequal spatial dynamics in South Africa, particularly Cape Town, and dynamics during COVID-19. Secondly, it provides a historical overview of the Church of the Nazarene and its foundational beliefs. Moreover, it discusses a case study of renewed spatial dynamic in church using the Church of the Nazarene in Khayelitsha. Furthermore, the case study will be used to show the innovative way they reached their community during this time. The final part will discuss how this inclusive spatial dynamic reveals an innovative dynamic in the concept of the missional church, one that goes beyond the going out contextually, but allowing the outside in as well.Contribution: This article discusses the new spatial dynamic of the missional church which inspires inclusivity. The article uses literature around space, COVID-19, mission studies and church history. Furthermore, a semi-structured interview with a church leader at the Church of the Nazarene in Khayelitsha is used for a contextual case study.

Housing cost burden and external causes of mortality: Variations across housing regimes in high-income countries, 2010–2020

ObjectivesWhile comparative studies reported that generous welfare state improves population health, they did not take into account the roles of housing as a cornerstone of welfare state. To reduce knowledge gaps, this study aims to estimate (a) the link between housing affordability stress and mortality rate due to external causes and (b) the moderating effects of housing regime on such association. MethodsUsing country level panel data from the databases of the Organisation for Economic Co-operation and Development (OECD), fixed effects were performed to estimate the effects of housing costs to income ratio on mortality rates due to external causes (accidents, intentional self-harm, and assault). Also, we tested whether housing regimes moderate the association between housing cost burden and mortality rate. ResultsAn increased level of housing cost burden predicted mortality rates due to accidents and intentional self-harm. Such association was pronounced for countries with higher rates of homeownership and limited access to market self-help. In addition, when homeownership rates and debt-to-income ratios are taken into account as time-varying variables, the elevated mortality risks associated with both increased housing cost burden and higher homeownership are mitigated in countries where debt relative to income increases. ConclusionOur findings suggest that different housing systems shape divergent patterns of mortality risks associated with housing affordability stress. Future studies may wish to incorporate housing in macro comparative studies on population health.

Do local governments tax homeowner communities differently?

AbstractThis article investigates whether and how strongly the share of homeowners in a community affects residential property taxation by local governments. Different from renters, homeowners bear the full property tax burden, irrespective of local market conditions, and the tax is more salient to them. “Homeowner communities” may hence oppose high property taxes in order to protect their housing wealth. By merging granular spatial data from a complete housing inventory in the 2011 German Census with historical homeownership rates and housing damages during the Second World War as sources of exogenous variation in local homeownership, we provide empirical evidence that otherwise identical jurisdictions charge significantly lower property taxes when the share of homeowners in their population is higher. This result is invariant to local market conditions, which suggests tax salience is the key mechanism behind this effect. Moreover, we find positive spatial dependence on tax multipliers, indicative of property tax mimicking by local governments.

Evolution of Home Ownership of Households in Turkey

Home ownership rate has been declining steadily since 2004. This decrease is remarkable during a period when the construction sector is growing and that growth is reflected to the house sales. In this study, the reasons behind the decline in the home ownership rate are examined with descriptive statistics and econometric analysis using data from Household Budget Survey. The results show that the probability of home ownership of households is positively related to income level and age and negatively related to price-income ratio, price-rent ratio as well as female household head. On the other hand, when the responsiveness of home ownership to interest rate is analyzed by group of income levels of households, it is observed that households in the upper income level quintile are more responsive to interest rates than those in the lower income level quintile. This indicates that some of the house purchases may be made by the upper income level group for investment purposes and that households in low-middle income level quintiles are not sensitive to interest rates. In other words, the surge observed in house sales in recent years cannot be observed in home ownership rates. Therefore, it is believed that policies such as increasing the income assurance and public housing projects where the down payment and monthly payments are kept low, will be beneficial in order to increase the home ownership of low and middle income groups of households.

Home-ownership and unemployment: revisiting the Oswald hypothesis from a regional heterogeneity perspective

Home-ownership may create both positive and negative externalities. As an example of a negative externality, the so-called Oswald hypothesis suggests that a high home-ownership rate creates frictions in the economy and thus increases the unemployment rate. We approach this hypothesis from a novel perspective by taking into account regional differences in population density and dwelling composition. Using municipality-level panel data, we find that although the phenomenon identified by the Oswald hypothesis may not be omnipresent, it may manifest itself, particularly in semi-urban areas where the share of large ownership dwellings is high. We also find that in-migration to these areas is lower, which is consistent with the view that the home-ownership rate may affect migration flows and, thus, economic dynamics.

Assessing levels of urban public electric vehicle charging service in different-level cities: A case study of the 35 cities of the Chengdu–Chongqing Urban Agglomeration, China

Urban Public Electric Vehicle Charger (PEVC) services are crucial for sustainable development in countries with low rates of single-family home ownership, promoting vehicle electrification and contributing to the achievement of the Sustainable Development Goals (SDGs). PEVC provision differs across Chinese regions and cities, especially among various city levels. However, this disparity has not been adequately addressed, impeding strategic PEVC development planning. To clarify these disparities, this study combines an analysis of the supply-demand and usage costs of PEVCs, which are the main factors affecting vehicle electrification, and evaluates the disparities in PEVC service among 35 cities of varying levels in Chengdu–Chongqing Urban Agglomeration. The results indicate that mega-cities demonstrate the highest service levels, attributed to their robust supply capacity and well-developed pricing mechanisms, but they also face higher actual demand pressures. Medium-sized and small cities show intermediate PEVC service, while large cities unexpectedly demonstrate the lowest supply-demand level and highest usage costs due to the mismatch between PEVC supply and demand size. Additionally, the study highlights the priority of PEVC station scale in enhancing the supply. These findings inform policymakers in shaping targeted strategies and policies, adapting to the varying PEVC service levels across different cities.

Housing inequalities: The space-time geography of housing policies

Changes in policy over the last thirty years, particularly within advanced economies, have allowed for increased financialization, deregulation and globalisation of housing. What differentiates real-estate from other financial markets is that it possesses a salient socio-spatial geography. Housing inequalities are often framed as an outcome of macro-economic structural changes or as a product of local socio-spatial conditions, but the interactions between the two are less understood. To address this gap, we develop a descriptive methodology to connect the analysis of national housing policy trends in the Netherlands with local socio-spatial trajectories of neighbourhood change using nearly 20 years of historical data across a range of socio-spatial dimensions from the City of Rotterdam. Whilst nationally there has been an increasing policy preference for home ownership associated with a narrative of social upliftment, the spatial-temporal analysis reveals that the wealthiest neighbourhoods have benefitted significantly more from capital gains and increased rates of home ownership over time. Through descriptive analysis, the results highlight the role of divergent neighbourhood characteristics and path dependencies, suggesting that housing policies could benefit from the adoption of a more localised approach. Overall, the study sheds light on housing inequalities by integrating macro socio-economic factors with micro-level neighbourhood conditions.

Healthy Living in Subsidized Houses? Evidence From Indonesia’s FLPP Program

Government policies to encourage homeownership rates for low-income communities (MBR) are implemented through the Housing Finance Liquidity Facility (FLPP) program, executed since 2010. However, more than half of the built subsidized homes need to meet the minimum construction standards and infrastructure requirements that can impact the health quality of their occupants. This study aims to investigate the impact of government support for purchasing subsidized housing from Indonesia’s FLPP program on district/city-level public health. The results of this study indicated that the FLPP program affects home occupancy rates and the FLPP program also has a negative relationship with community morbidity levels in the MBR group. As well, state intervention in the housing sector with the FLPP subsidized housing program can demonstrably improve the quality of public health. This study recommends that the government maintain the FLPP program because, apart from increasing occupancy, it indirectly impacts health quality improvement

House price cycles, housing systems, and growth models

The paper provides a framework for theorising the role of house price cycles in national growth models. We synthesise Minskyan approaches with comparative political economy (CPE) by arguing that institutions influence the extent to which countries experience what we call ‘house-price-driven growth models’. First, we argue that house price dynamics have been undertheorised in existing growth models analysis. Finance-led models can be properly understood only against the background of rising house prices that stimulate consumption through wealth effects and investment through construction. Second, we identify behavioural and Minskyan theories of housing cycles as suitable frameworks to theorise the impact of housing on growth. However, this literature does not provide an analysis of cross-country differences in housing cycles. Third, drawing on the CPE literature on housing systems, we argue that factors such as private homeownership and mortgage-credit encouraging institutions can explain differences in the intensity of housing cycles. We provide preliminary empirical support for this framework from a cross-country analysis. Our results show strong cross-country heterogeneity in the intensity of housing cycles. Countries with more intense house price cycles also tend to exhibit more volatile business and debt cycles. Homeownership rates and mortgage-credit encouraging institutions are positively correlated with the volatility of house price cycles.

주택임대차 시장 상생방안

In South Korea, the domestic housing supply rate has already exceeded 100% since 2008, but the home ownership rate in 2021 still remains at 57.3%. In response to large-scale Chonse fraud, the government has come up with various solutions, but there is criticism that it is insufficient for a fundamental solution. This paper aims to derive a win-win plan between landlords and tenants in the rental market through legal and institutional improvement.
 First, it is necessary to partially restrict private landlords from freely choosing whether to register as rental businesses. Through this, it is possible to prevent a rental business operator who meets the requirements for rejection of the registration application under Article 7 (7) of the Special Act on Private Rental Housing from entering the rental market. In addition, the tenant's right to claim the return of the deposit can be substantially secured by requiring additional asset requirements for rental businesses of a certain size or larger. Although the lease system has positive factors such as a role as a residential stepping stone and a reduction in housing costs, it basically grants the right to freely dispose of a large amount during the lease period, while the legal protection for its return is insufficient. There have been various legal and institutional efforts to compensate for this, but tenants are still not sufficiently protected. The old customary Chonse was incorporated into Article 303 et seq.(Right to registered lease on a deposit basis) of the Korean Civil Code, but Chonsegwon is rarely used in practice. In terms of the protection of tenants, it is reasonable not to allow Chonse Lease. In reality, it is also possible to consider forcing the registration of leaseholds that are paid a certain amount or more of rental deposits. It is necessary to correct the practice that rental deposits are received much more than collateral purposes. Article 551 (1) of the German Civil Code restricts rental deposits not to exceed three times the rent for one month. It may also be considered to force leaseholds that are paid a certain amount or more of rental deposits to be registered.

Ethnic differences in intergenerational housing mobility in England and Wales

Abstract Home ownership is the largest component of wealth for most households and its intergenerational transmission underpins the production and reproduction of economic inequalities across generations. Yet, little is currently known about ethnic differences in the intergenerational transmission of housing tenure. In this paper, we use linked Census data covering 1971–2011 to document rates of intergenerational housing tenure mobility across ethnic groups in England and Wales. We find that while home ownership declined across all ethnic groups during this period, there were substantial differences between them. Black, Pakistani, and Bangladeshi households experienced the strongest intergenerational link between parent and child housing tenure, and Black individuals had the highest rates of downward housing mobility. In contrast, those of Indian origin had homeownership rates similar to White British families, and a weaker link between parent and child housing tenure. These patterns are likely to exacerbate existing gradients in other dimensions of ethnicity-based inequality, now and in the future.

Changing marital transitions and homeownership among young households

This paper shows that the evolving likelihood of marriage and divorce is an important factor that helps account for the changes in homeownership rates among young single households and married couples from 1970 to the mid 1990s. To investigate potential mechanisms behind these observed changes, I develop and estimate a life-cycle model that incorporates housing decisions and age-dependent shocks associated with marriage and divorce. The findings indicate that the declined likelihood of marriage, along with increased returns on non-housing assets, helps generate the observed rise in homeownership among singles aged 25-44 years. Conversely, the increased likelihood of divorce, in addition to higher house prices and labor market volatility, contributes to the decrease in homeownership among young couples.

Subsidizing housing with deductions

AbstractMany governments subsidize owner‐occupied housing by allowing households to deduct housing expenses from their taxable incomes. While these deductions provide considerable financial benefits to homeowners, they also have significant downstream consequences. This article synthesizes a large body of literature that assesses these implications on various aspects of the housing market, including mortgage demand, interest rates, tenure decisions, homeownership rates, housing prices, and welfare. The findings in the literature collectively emphasize the distortive impact of these fiscal deductions on housing consumption and investment, with a growing consensus regarding the deductions' regressivity and negative effects on homeownership rates and welfare.

The geography of mortgage interest deductions

We investigate the heterogeneous impact of the US federal mortgage interest deduction (MID) on households’ location and tenure decisions. We develop a spatial general-equilibrium model featuring non-homothetic preferences in which households can choose whether to claim the MID or a standard tax deduction. Repealing the MID decreases homeownership rates more strongly in central areas because owner-occupiers migrate to the countryside. Welfare increases slightly because positive externalities from less congested housing markets and undistorted tenure decisions outweigh productivity losses in central locations. An increase in standard tax deductions, as implemented in 2018 by the Tax Cuts and Jobs Act, leads to a similar welfare increase.

Homeownership as a source of income in kind for elderly households: the evidence from the Luxembourg Income Study

Although housing wealth in general, and own residence in particular, accounts for the greatest share in the household wealth composition irrespective of the country, the issue of housing as a source of additional income in kind is rarely addressed in the current literature. The study explores the distribution of imputed rental income among older households. It aims to assess the role of the income in kind in shaping the welfare of the elderly, and specifically, its impact on poverty reduction. It also investigates how the inclusion of imputed rent in the income concept impacts inequality estimates. Our empirical research covers a cross-country comparative analysis that draws from Luxembourg Income Study database and includes seventeen countries. We examine the situation of older homeowners as compared to subsidized tenants and renters at market price to answer the question to what extent homeownership can act as a source of additional pension income. This entails also some policy implications regarding the justification for incentives and privileges for homeowners and homebuyers aimed at increasing homeownership rates, as well as the need for development of subsidized rental sector.

베이지안 비선형 모형에 기반한 자가율 분석

Age-period-cohort (APC) analysis is well known for its suitability in the life cycle, aging, and long-term trend studies, with the cohort effect explaining social phenomena as the influx of new generations. The analysis can be divided into two components: the cohort effect and the period effect. In this study, a Bayesian nonlinear model was introduced to estimate the home-ownership rate of the baby boomer generation based on APC analysis. Three types of data were used to ensure the robustness of the results, taking into account the APC linear relationship and findings from previous studies. In some models, age dummies were included to capture the home-ownership rate intuitively. Additionally, a nonlinear model was applied to the finance and labor panels, which maintained the same sample over time, to isolate each effect of APC. This novel approach demonstrated the potential for improving the identification problem of APC in comparison to traditional linear analysis. The study found distinct differences in the housing consumption pattern of the baby boomer generation compared with previous generations. The baby boomers now constitute a significant portion of the elderly population, implying a shift in the implications for housing stability. By addressing the identification issues, the Bayesian nonlinear model enhances the utility of APC analysis and contributes to a great understanding of the differences in housing preference systems among generations.

Homeownership rates, housing policies, and co-residence decisions

Abstract Homeownership rates differ widely across European countries. We document that part of this variation is driven by differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To understand these patterns, we build an overlapping-generations model where individuals face uninsurable income risk and make consumption-saving and housing tenure decisions. We embed an explicit intergenerational link between children and parents to capture the three-way trade-off between owning, renting, and co-residing. Calibrating the model to Germany we explore the role of income profiles, housing policies, and the taste for independence and show that a combination of these factors goes a long way in explaining the differential life-cycle patterns of living arrangements between the two countries.

Elderly vs. Working-Age Generation: Homeownership and Housing Asset Inequality in a Cross-Country Perspective

This study contributes to the discussion about wealth inequality, albeit from a more detailed housing perspective. It explores tenure inequality, as well as housing assets inequality. The latter includes a different approach than the one that prevails in the previous literature on wealth inequalities, which most often considers total net worth or net housing wealth. This study focuses on gross housing asset distribution, irrespective of mortgage debt, which corresponds with the potential of housing equity accumulation as a source of income in old age. It emphasises the intergenerational context, but simultaneously involves cross-country comparisons that allow for relative assessment of the intergenerational differences. Drawing from the Luxembourg Wealth Study (LWS) dataset the paper presents the results for fourteen developed countries. They suggest that the current working-age generation is to a lesser extent involved into homeownership, as compared to the older generation, which results in a smaller housing equity per household, but simultaneously it experiences greater housing inequality. Furthermore, as shown in a cross-country perspective, homeownership rates and housing asset inequality are negatively correlated. Consequently, higher housing asset inequality by lower homeownership rates are the factors that undermine the usefulness of the asset-based welfare concepts in a policy application. Such findings imply that in the macro perspective the potential of housing as a source of additional income in cash and in kind tends to shrink.

FACTORS INFLUENCING HOUSE BUYER’S DECISION IN MALAYSIA. CASE STUDY: SEPANG, SELANGOR

Housing is a basic human need as explained in the Maslow hierarchy needs. Having a house is a very important entity in ensuring a sense of security for each individual and family. Deciding on buying a house is a crucial decision since housing expenses involved a large amount of cost in individual monthly expenses. Furthermore, the homeownership rate in Malaysia as reported by the Department of Statistics Malaysia (DOSM) in 2019 didn’t increase significantly. Thus, the government and house developers need to identify the important factors that influence the house buying decision-making to increase the homeownership rate in Malaysia. This study investigates the factors influencing housing buying decisions and the difference in factors influencing different income groups in Sepang, Selangor. This study measures the internal factors and external factors influencing house-buying decisions. The internal factors measure the income, stage of life cycle, employment and education subfactors. The external factors measure the financial and economic condition, house price, location, neighbourhood, house type and design and also government housing incentives. A mixed method was applied in this study by interviewing real estate experts and also a survey of 184 respondents in the case study area. Using transcribe method and analysing of the survey data with descriptive and inferential analyses to study the influencing factors. The real estate expert and respondents agreed all the factors were influencing house buying decisions except for education. The importance of the factors is also different among the income groups. For internal factors, all income groups agree that income is the most influential factor followed by employment, stage of life cycle and education. The importance of external factors is different among the groups.

Homeownership of new immigrants in Hong Kong: before and after the handover

As a densely populated city, Hong Kong’s housing market is the least affordable in the world. This paper aims to uncover the underlying socio-economic factors behind the changing homeownership patterns of new immigrants before and after the handover. While Mainland immigrants enjoyed the highest likelihood of homeownership among new immigrants before the handover, their advantage disappeared after the handover. The findings support the Assimilation theory’s prediction that homeownership is lower among those less assimilated in general, but not among Mainland migrants. Those who were married, well-educated, employers; and had longer residences were more likely to be homeowners. Various admission schemes are implemented to attract talents, professionals and entrepreneurs to reside in Hong Kong but there is no accompanying housing policy to enable immigrants to become homeowners. The results show the homeownership rate of new immigrants dropped by more than half after the handover. Immigrants may feel less secure calling Hong Kong their home if they don’t own a “home”.