home ownership
Understanding Homeownership Rates: the Impact of Co-residence Patterns
The socio-demographic context, which includes the co-residence patterns associated with the decisions of young adults on whether to live in the parental household or enter homeownership or renting, is directly reflected in homeownership rates at the aggregate level as a consequence of these decisions. However, the way in which tenure statistics are reported also matters in this respect. This applies specifically to household-level statistics, which are most often used to characterise housing systems. It is therefore possible to ask whether countries with high homeownership rates and, simultaneously, high shares of adult children living with their parents are truly high-homeownership societies. This study identifies the countries for which the reported tenure statistics are more influenced by demographic conditions as compared to other countries. These are the Mediterranean countries and the Central and Eastern European countries (with some exceptions).
The Role of Mortgage Subsidies in the Croatian Economic Growth Strategy: a Political-Economy Approach to the SSK
Since 2017, Croatian housing policy has focused on promoting homeownership through the SSK programme – a form of mortgage subsidisation that covers a proportion of housing costs. Although this policy aimed to improve affordability and increase homeownership, a recent economic evaluation has shown that the SSK has in fact contributed to rising house prices and has been ineffective at raising the homeownership rate. While econometric research has identified the impact that the SSK has had on house price volatility and affordability, the underlying factors leading to the implementation of this subsidy, as well as its broader societal impacts, remain under-researched. Through a political-economy lens, this paper analyses the context that led to the inception of the SSK, its core targeting principles, and its impact on the housing market. We ask: How does this subsidy position the Croatian housing market within the national strategy for economic growth and social policy provision? We argue that this policy’s impact on housing markets is twofold. First, the SSK reinforces a shift towards financialised growth through increased asset prices. Second, this subsidy shifts the focus of social policy towards mortgage markets, thereby furthering the privatisation of the welfare state and favouring middle-income groups. This paper’s contribution resides in critically discussing the SSK beyond its stated goals and contextualising it within the broader model of economic growth dependent on private finance. Through interviews with relevant stakeholders, descriptive data indicators, and a review of policy documents, this paper characterises the Croatian growth strategy as a form of small-scale financialisation that relies on aligning social policy with mortgage markets. Finally, we position the SSK within a wider array of finance-led housing policies and suggest the formulation of a comprehensive housing strategy tailored to the broader segments of Croatian society.
Traces of Obduracy: Imaginaries of ‘Social Inertia’ in the Process of Introducing Collaborative Housing in the Czech Republic
This paper explores the sociotechnical change necessary for the introduction of collaborative housing projects into the Czech super-homeownership housing regime. To better understand the obduracy of the current housing system, we examine the major barriers and threats to the implementation of such projects through a series of workshops with non-experts in selected cities. Our findings suggest that the housing system’s obduracy is related to social imaginaries that we conceptualise as the ‘imaginary of social inertia’. This form of imaginary, along with other factors such as a lack of supporting legal and financial infrastructures, creates a complex network of obstacles that reduce the likelihood of such housing projects gaining ground. In conclusion, our research emphasises the role of imaginaries in studying obduracy and thus provides valuable insights into the processes of urban sociotechnical change.
Housing Quantum and Innovative Building Systems in South Africa – the Affordability Perspective for 2020
The adoption of innovative building technologies (IBTs) and social welfare policies in South Africa has facilitated an increase in decent homeownership among low-income groups, thus improving their quality of life. However, due to the escalating costs of building materials, the capital and lifecycle costs of implementing these technologies may no longer be affordable. This research aims to provide a comparative evaluation of the affordability of some readily available IBTs in the South African construction industry, relative to existing homeownership subsidy grants. The method used involved the use of secondary data for these IBTs and the income constraint methods. The results showed that, apart from the technologies suitable for the provision of temporary structures, most of the other technologies were not affordable for the complete subsidisation of the top structure when both capital and lifecycle costs were used, except the Moladi and Robust structure IBTs under some low-income homeownership programmes. Further analysis using credit-linked subsidies revealed that the minimum household income required to achieve affordable homeownership (and their rankings) depends both on the evaluation technique (lifecycle or capital costs) and technology used. To improve affordability, any implementing government can either raise the amount of the top structure subsidy grant, promote the use of cheaper but durable IBTs, or promote the use in incremental building methods, such as the Enhanced People’s Housing Process (EPHP) for the case of South Africa.
Whither Peripheral Financialisation? Housing Finance in Croatia since the Global Financial Crisis
This article analyses recent developments in Croatian housing finance to update the established account of housing finance and peripheral financialisation in Eastern Europe that is based on the boom-bust cycle of the 2000s and early-to-mid 2010s. During the bust stage of that cycle, changes in regulation and in the behaviour of debtors and creditors resulted in deleveraging and a shift away from the risky and exploitative lending practices characteristic of peripheral housing finance. However, new increases in household debt and housing prices since 2016–17, coupled with the COVID-19 pandemic, seem to have reversed these trends. While a boom-bust cycle of similar scope and modality to the first one is unlikely to be repeated, peripheral forms of housing finance have persisted to some degree.
Forex Mortgages and Housing Access in the Reconfiguration of Hungarian Politics after 2008
After a boom in foreign-currency denominated (forex) mortgage loans in the 2000s and the resulting debt crisis in 2008-2009, Hungary’s debt management came to be defined by a highly politicised combination of several phenomena: the existence of a large social base at risk of defaulting on their mortgages; the integration of debtors’ struggles into a shift from the post-socialist dominance of neoliberalism to a national conservative political hegemony during the crisis years; and the political foregrounding of forex debt management in the post-2010 Orbán governments’ construction of a new financial model as part of a post-neoliberal authoritarian capitalist regime. The article traces how two main aspects of the forex mortgage crisis, housing debt under dependent financialisation and the problem of limited housing access, became integrated into Hungary’s electoral politics and macroeconomic transformation in the last decade.
Housing Uncertainty: Socio-economic Inequality and Forex Loans Trajectories in the Bosnian Housing Market
This article explores the nexus between the financialisation of housing and socio-economic inequality in Bosnia and Herzegovina (BiH). In this context, since the post-war economic reforms, driven by deindustrialisation, the precarisation of labour, and dependent financialisation, housing loans have become a ‘privilege’ for a restricted group of people with high and stable incomes. Instead, the housing aspirations of Bosnians are generally met with the aid of consumer loans and the ostensibly cheaper FX loans that were introduced in the mid-2000s. Drawing on quantitative and qualitative data, this paper highlights the enduring features of the polarised credit market in BiH. It particularly focuses on the period after the 2008 crisis when lending policies were only mildly re-regulated. FX loans never became the object of an ad hoc law to convert them to Bosnian convertible marks. This institutional approach has been unable to challenge the extreme class segmentation of housing finance and is still fostering indebtedness and precarious housing conditions among the lower-income segments of Bosnian society even after the pandemic.
Airbnb and Amenity: Is Short-Term Letting Reshaping How We Live in the City?
The popularity of short-term letting (STL) platforms like Airbnb has created housing and planning challenges for cities worldwide, including the potential impact of STL on the quality of life of nearby residents and communities. Underpinning this concern is an inherent tension in urban living between the rights and interests of individual residents, and the collective rights and interests of neighbours. Through interviews with Australian Airbnb hosts, this paper examines how STL hosts navigate this tension, including how they frame their property rights, how they seek to minimise their impact on neighbours, and how they perceive the role of regulation in balancing individual and community rights. In doing so the paper contributes to both theory and policy debates about urban property rights and how ‘compact city’ planning orthodoxies are reshaping the lived experience of urban residents worldwide.
Housing Market Access in the Lisbon Metropolitan Area: Between the Financial and the Pandemic Crises
The Portuguese housing market underwent major transformations between 2010 and 2020. Until then, a delicate but resentful stability had long existed, with distorted rent schemes and low annual price increases proportional to the national economy and the income of the Portuguese population. After the financial crisis, several internal and external variables converged to dramatically change this scenario. In recent years, a growing number of researchers have centred their attention on the difficulties that the Portuguese urban middle-class populations are facing in trying to find homes. This paper analyses these challenges and their impact quantitatively, focusing on the affordability of housing for purchase or rent and considering synthetic indicators for average household incomes in the Lisbon Metropolitan Area between the beginning of 2016 and the end of 2019. The results show that the cost of buying or renting a house in the main Portuguese urban system has become much more detached from local incomes. The article concludes with reflections on the structural reasons for the enduring inequalities in the housing markets and the difficulties recognising territorial cohesion and spatial justice as important elements shaping urban and housing policies in Portugal.
Choice or No Choice? Genuine or Fake Choice? – A Qualitative Study for Reflecting on Housing Choice
This paper seeks to reflect on issues related to the nature of housing choice, drawing on qualitative empirical data collected in in-depth interviews. This paper discusses two perspectives related to housing choice, namely, the ‘market perspective of housing choice’ and the ‘perspective of housing choice for well-being’. The ‘market perspective of housing choice’ highlights that desirability generally increases with a greater range of housing choice as the housing supply increases till a climax is reached, after which a further expansion of housing choice may indicate an excess housing supply, which may not be advantageous and home-buyers may instead ‘decide not to choose or buy’. The ‘perspective of housing choice for well-being’ reveals that choice in the housing arena is often viewed as a means to eventual well-being, rather than as an end in itself. Housing choice is ‘genuine’ and ‘meaningful’ if there are meaningful and significant options among a few desirable housing alternatives. ‘Fake housing choice’ involves having to choose from among housing options that are all generally bad.
Rethinking the Concept of ‘Housing Regime’
‘Housing regime’ is a term that is used relatively often in (macrosocial) research comparing housing policies and systems. However, there is no generally accepted definition of this term. In this paper I shall first scrutinise previous uses of the concept, starting with a discussion of the most famous regime concept – the welfare regime. The discussion paves the way for a redefinition of a ‘housing regime’: the set of fundamental principles according to which housing provision operates in some defined area (municipality, region, state) at a particular point in time. Such principles are thought to be embodied in the institutional arrangements that relate to housing provision, in the political interventions that address housing issues, and as in the discourses through which housing issues are customarily understood. This definition is compatible with the path-dependence approach that has been adopted here and with the aspects of reality that researchers want to capture using the ‘regime’ concept.
Incremental Change in Housing Regimes: Some Theoretical Propositions with Empirical Illustrations
The durable structures of housing and housing institutions are often subject to long-term processes of incremental change. Nevertheless, housing studies have largely focused either on static snapshots of policies or, more recently, on the inertia of institutional path dependence, while processes of incremental change have been almost entirely neglected. Political scientists (Streeck/Thelen/Mahoney) have proposed a typology of patterns of incremental institutional change, and this paper explores the applicability of this typology to housing structures and housing institutions. We draw on empirical illustrations from the housing literature to show how five types of change – layering, conversion, displacement, drift, exhaustion – apply to housing structures and institutions. We conclude with some general observations on how the typology can be used in further studies of developments in national housing regimes.
Integrating Varieties of Capitalism, Welfare Regimes, and Housing at Multiple Levels and in the Long Run
The title conveys all the elements of this article. The typologies of capitalist economies, the typologies of welfare regimes, and the typologies of rental and owner-occupied housing regimes should be synchronised and combined, not selectively, but systematically. Integration will have to determine the multiple levels to which these typologies can be applied and on which they can interact. Owing to the persistence of housing institutions and buildings, a long-term (historical) view is also suggested – at all levels of analysis.
Exploring Young Europeans’ Homeownership Opportunities
Even before the 2008/9-crisis but certainly afterwards, trends in labour, housing and mortgage markets combined with welfare reform, making it more difficult for each new cohort of young Europeans (25-34) to complete the transition to ‘residential independence’, particularly to become a homeowner. This paper explores ‘trends in homeownership opportunities’, using data from EU-SILC (2005-2018). It takes a broader perspective by exploring trends in its social selectivity, as well as changes in the ‘attributes’ of homeownership over time. Young adults’ homeownership opportunities have declined almost everywhere in Europe, but to varying extents. Furthermore, a more socially selective group of young homeowners seems to be entering properties of lower quality in locations with fewer services. Deteriorating homeownership opportunities are strongly associated with mortgage lending restrictions, indicating that trends in housing and broader financial markets/policies are important explanatory factors. I also find indications that the transition to homeownership is being pushed beyond the commonly-used age-threshold of 34 years.
Family Housing Pathways: An Introduction to the Study of Housing in Poland in Biographical and Historical Perspectives
The article describes the approach and method of Family Housing Pathways. This process of gathering and presenting data makes it possible to include the extended family’s housing resources, the management of these resources, and the transformations of households within a family. Twenty-eight Family Housing Pathways were gathered and collected as part of an assignment given to students as part of an undergraduate course on housing problems. The exercise shed light on recurring themes in the transformation of the housing system in Poland that influence individual and family management of housing resources. Even a sample of relatively privileged families demonstrates that housing is clearly a crucial dimension, especially in times of transition, e.g. in post-communist Poland after 1989. The Family Housing Pathways approach could be a promising tool as well as an approach that combines biographical and historical housing perspectives, without losing sight of concerns of a practical and ethical nature.
Order and Timing of Home Ownership and Fertility Decisions in Australia
The birth of a child and transition into home ownership are markers of progression along a life course. Research shows that pathways to home ownership have become more diverse and deviate from the traditional pathway which was characterised by marriage followed by the birth of a child before entering home ownership. This study investigates the timing and order of the two interrelated events of birth of a child and the transition to home ownership in Australia. Using the Household, Income and Labour Dynamics in Australia panel survey, we apply a multi-process event history analysis for describing the timing of each event following the formation of a cohabiting relationship. The results suggest that the likelihood of birth increases with prior home ownership attainment but as time passes following the purchase of a home, the likelihood of birth decreases, similarly, the likelihood of home ownership attainment decreased with time following birth.
The Diverse Economies of Housing
This paper questions the uncritical transfer of neoliberal concepts, such as financialisation and overreliance on conceptual dichotomies like formal/informal, as the lenses through which to understand practices of housing provision and consumption in the post-communist space. To this end, it introduces the newly-established ‘diverse economies’ framework, which has been used elsewhere to reveal existing and possible alternatives to advanced capitalism. Applied to the Romanian case, the lens of diverse economic practices helps shed light on the ways in which the current housing system was historically constituted, with implications for how housing consumption is now stratified across some related housing typologies. The paper invites debate on the theoretical usefulness of the diverse economies framework to study housing phenomena, particularly its implications for understanding patterns of inequality and poverty, its potential to devise useful analytical categories, and its effect of directing attention to acts of resistance to neoliberal capitalism.
Correlation of Homeowners Associations and Inferior Property Value Appreciation
North to south migration in the U.S. and housing developers’ claims of benefits led to exponential growth in neighbourhood homeowners associations during recent decades. Sanctioned by state laws, association rules governing homeowners are usually initiated by developers who claim that the rules protect property values. But the claim is not supported by empirical analysis. Inflation adjusted annual percentage returns in consecutive sales of a sample of 900 most recent home sales in Duval County Florida, Pima County Arizona and St. Louis County Missouri during late 2017 and early-2018 were examined. The results revealed that the annual percentage returns on homes sold in homeowners associations were significantly less than those of homes in other neighbourhoods statistically controlling for property characteristics and prevailing economic conditions at the time of the original purchase. Correlates of home prices at any point in time are not predictive of percentage return from purchase to sale.
Housing and Asset Based Stratification in the Enrichment Economy
This paper explores the ways in which housing wealth is producing new forms of differentiation among households. In doing so, it will argue that ‘asset based welfare’ is now better conceived as ‘asset based social stratification’ and that social class rather than generation remains the primary social divide. However, these class divides are increasingly shaped by the differential ability to accumulate and deploy primarily housing -based assets. These new forms of social (re) stratification will vary societally, temporally and spatially and are currently most evident in what can be described as older, mature home ownership societies. But similar developments and emerging fissures can be observed in newer, ultra home -ownership societies such as China and in the broader interconnections between the mobilization of family assets and the shift from consumer to market societies.
‘Generation Rent’ and Intergenerational Relations in The Era of Housing Financialisation
Home ownership has been in decline in a number of developed societies since the early-2000s driven, primarily, by declining entry among younger households who have been increasingly pushed into the rental sector. This trend has been associated with a growing intergenerational divide, or even conflict, and the emergence of ‘Generation Rent’. This paper explores the conditions surrounding diminishing access to owner-occupation among new households with a focus on the historic maturation of home ownership sectors, the restructuring of the political economy around financialized housing wealth and the inter-cohort dynamics surrounding the accumulation and transfer of housing wealth. The paper takes an international perspective drawing on evidence from two parallel, but contrasting cases: Japan and the UK. The analysis illustrates the interrelatedness of inter- and intra-generational inequalities, with the former reinforcing the latter. It also focuses on the role of families as both a moderator of generational inequity at the micro level as well as an enhancer of socioeconomic inequalities overall.
