Homeownership motivation, rationality, and housing prices: Evidence from gloom, boom, and bust‐and‐boom economies

Alexiou, Constantinos; Chan, Aaron‐Samuel; Vogiazas, Sofoklis

doi:10.1002/ijfe.1672

Cited by 6 publications

(4 citation statements)

References 53 publications

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“…For residential property purchases, personal income and loans are typically combined, with loan leverage up to four times higher in some cases (Alexiou, et al, 2019). The reason for such a high borrowing burden is that housing costs account for a significant share of household income spent.…”

Section: Access To Residential Propertiesmentioning

confidence: 99%

Beyond luck: The key to profitable residential real estate investments for individual investors in Türkiye

Erdogdu¹

2023

DRArch

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Individual residential investors are influenced by the media and their environment in their investment preferences, as they lack the experience of property investors and professional residential investors. Concerns about regret, fears of further property price rises and social circumstances put pressure on investors. Under these conditions, are individual housing investors seeing all the opportunities in the housing market? What types of buyers are taking advantage of these opportunities? This study aims to create tools to help individual residential investors identify opportunity periods in the market, analyse such opportunities retrospectively and test consumer behaviours in response to these opportunities. We analysed the opportunity for access to housing, the opportunity of lower loan interest rates and the opportunity of lower housing prices in Türkiye in the 120 months between 2013 and 2022 using the income-housing price scale. We analysed residential sales (total, credit and cash) in the opportunity periods resulting from the equations set up for the opportunity periods. We tested the criteria for selecting opportunity periods using the analysis of variation (ANOVA) method. We analysed changes in consumer preferences for credit and cash home purchases during periods of opportunity. We found that residential investors did not use the opportunity of accessing residential properties, and that cash home buyers used the opportunities of residential loan interest rates and residential price declines. We analysed changes in consumer preferences for credit and cash home purchases during periods of opportunity. We found that residential investors did not use the opportunity of accessing residential properties, and that cash home buyers used the opportunities of residential loan interest rates and residential price declines.

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Section: Access To Residential Propertiesmentioning

confidence: 99%

Beyond luck: The key to profitable residential real estate investments for individual investors in Türkiye

Erdogdu¹

2023

DRArch

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“…The dominant housing motivation is another important factor shaping a housing system, especially through the price signal (Alexiou et al, 2019). Individuals’ motivations are what they expect to gain in the future, and they choose how to behave now by evaluating among alternative courses of action.…”

Section: A Constructivist Framework For Housing Financialisationmentioning

confidence: 99%

The temporal variation of housing financialisation: a case study of China

Miao

2022

Transactions in Planning and Urban Research

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Responding to the call for a greater attention to the inherited variations in housing financialisation, this paper contributes by bringing in a constructivist perspective in exploring how financialisation gradually unfolds in a particular context. Drawing on the case of China, two interrelated arguments are made. First, a structural and temporal distinction is made between three phases of housing commodification, speculation and financialisation 1.0, where significant differences are noticed between the ownership structures, housing rights, markets, returns and motivations from a constructivist perspective. Second, these phases are systemically interrelated as a result of the state-market nexus in China where active state intervention connects these different processes in a continuous cycle of the urbanisation of capital. The case of China adds to the emerging literature on housing financialisation from the global south, and speaks to the largely downplayed temporal variations of housing financialisation in the vigorous literature on financial geography and urbanism.

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“…It produces an interesting study in its assessment of the housing markets' response to regulatory measures in administratively different but geographically compact areas. In addition, the research provides a different angle of analysis by evaluating the varying impacts of regulatory policies corresponding to local demographic factors and intra-regional housing market interaction [29]. The research contributes to advancing knowledge and theory in housing system analysis, sustainable housing, and policy-related decision making.…”

Section: Introductionmentioning

confidence: 99%

Housing Sustainability: The Effects of Speculation and Property Taxes on House Prices within and beyond the Jurisdiction

Rauf

Weber

2022

Sustainability

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Housing plays an essential role in sustainable governance due to its socio-economic and environmental connection. However, the relationship between governance policies, market behavior, and socio-economic outcomes varies geographically and demographically. Therefore, segregated policies developed and implemented may fail to achieve their desired objectives because of the sensitivity of housing policies for their connection to human wellbeing. The effectiveness of housing policies in geographically connected regions is one of the areas that has received little attention in the Canadian context. The study follows a multi-step empirical method using a multiple linear regression model and a difference-in-difference approach to assessing the geographical variation of speculation and property taxes on housing markets. The study confirms that speculation taxes are not an effective tool in curbing house prices. Similarly, considering the role of property taxes in providing public services, delinking property taxes from a potential contributor to house prices would provide a better lens to develop local housing policies. Furthermore, the study also confirms that the housing market can be better assessed at a local scale, considering geographical influence in conjunction with investment trends.

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Homeownership motivation, rationality, and housing prices: Evidence from gloom, boom, and bust‐and‐boom economies

Cited by 6 publications

References 53 publications

Beyond luck: The key to profitable residential real estate investments for individual investors in Türkiye

Beyond luck: The key to profitable residential real estate investments for individual investors in Türkiye

The temporal variation of housing financialisation: a case study of China

Housing Sustainability: The Effects of Speculation and Property Taxes on House Prices within and beyond the Jurisdiction

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