An empirical analysis of homeownership in urban China

Abstract

Purpose – This paper seeks to investigate the impact of socioeconomic factors of homebuyers such as gender, age, marital status, education, economic status and race on home ownership and loan decisions in urban China. Design/methodology/approach – This paper employs logistic regression to investigate the socioeconomic factors affecting the consumers' house purchase decision in urban China and the factors affecting the housing loan application. Findings – Using a structured questionnaire to collect relevant data from household residents (both homeowners and non-home owners) in Nanjing in 2010, the findings document that male respondents who are non-minorities and have higher levels of education are more likely to purchase a house. The results also show that race, educational attainment, size of household and credit card ownership are significantly related to rejection for a housing loan. Research limitations/implications – The findings in this paper provide homebuyers with a better understanding of factors affecting the housing loans and their decision to purchase a house. Homebuyers can accurately assess their financial ability and improve the use of their credit to purchase a house. In addition, Chinese homebuyers should be encouraged to save since savings serve as a step in building their credit worthiness; therefore, their accessibility to housing loans can be improved and the rate of homeownership will be increased as well. Originality/value – This research would benefit both lender and borrowers. The research findings provide banks with a better understanding of homebuyers' characteristics that influence their accessibilities to housing loans. Homeownership requires affordable housing financing. Banks should consider repackaging their home loan products to make them more attractive to those with limited means. Such products should focus on making loans more affordable in real terms. First-time homebuyers are almost always young and earn low incomes.

Effects of Poverty on Urban Residents’ Living and Housing Conditions in Nigeria

“…Lauridsen and Skak (2007) who established that males often have stable incomes afford them the opportunity to acquire house than women support this. Gan et al (2013) discovered that male respondents with higher levels of education are more likely to own a house. Lauridsen and Skak (2007) asserted that as the level of household head's educational attainment changes, it contributes to housing affordability level.…”

“…As a result, they that plan to have their personal house must usually adjust their savings behaviour and consumption expenditures many years before they actually get their personal house (Atterhög & Song, 2009). Income is seen to be the most imperative factor influencing home ownership according to various scholars (Constant, Roberts, & Zimmermann, 2009;Gan, Hu, Gao, Kao, & A. Cohen, 2013;Y. Huang & Clark, 2002).…”

Homeownership Affordability of Low Income Group in Kuala Lumpur

“…A stable employment has leaded to the housing loan approval and increased the homeownership affordability in 270 Danish municipalities (Lauridsen et al, 2008). Besides Denmark, stability employment and duration of employment also enabled lots of professional workers to purchase houses around main cities in China (Gan et al, 2014). A non-stable job and constantly changes will delay the homeownership process to the extent of causing the homeownership to be obtained during the golden age (Cameron & Tracy, 1997).…”

Correlating Socio-Economic Attributes With Users’ Residential Satisfaction: Implications for Housing Policy in Ibadan Metropolis, Nigeria

“…This was supported by Lauridsen and Skak (2007) who established that males were often greater with stable incomes that enhanced them the opportunity to acquire house than women. Gan, Hu, Gao, Kao, and A. Cohen (2013) investigated the impact of socio-economic attributes of homebuyers on home ownership and loan decisions in urban China. They discovered that male respondents who are the majority with higher levels of education owned a house and the socio-economic attributes such as educational attainment and household size had significant relationship with rejection for a housing loan.…”

“…Arimah (1997) supported this assertion and included access to land and household size as other determinants factors to housing affordability. Income was to be the most imperative factor influencing home ownership and housing affordability according various scholars (Constant et al, 2009;Gan et al, 2013;Y. Huang & Clark, 2002).…”