Housing affordability and housing vacancy in China: The role of income inequality

Zhang, Chuanchuan; Song, Jia; Rui-xia, Yang

doi:10.1016/j.jhe.2016.05.005

Cited by 111 publications

(55 citation statements)

References 13 publications

(15 reference statements)

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“…A year later in 2016, another year with a significant increase in number of publications, most studies concentrated on 'housing affordability', 'home ownership' and 'income'. Some scholars discovered that the development of the housing rental market would help to reduce the inequality between income and house prices (Zhang et al, 2016). On the topic of home ownership, some scholars presented that buying or renting, as an investment decision by households, has long-term consequences on their financial well-being (Beaubrun-Diant & Maury, 2016;Crowley & Li, 2016;Tabner, 2016).…”

Section: Social Wealthmentioning

confidence: 99%

Real estate rental market: a 10-year bibliometric-based review

Liu

Peilong²,

et al. 2020

Economic Research-Ekonomska Istraživanja

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Section: Social Wealthmentioning

confidence: 99%

Real estate rental market: a 10-year bibliometric-based review

Liu

Peilong²,

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…In this Equation 1, the HP refers to the total sale price of each housing unit, while HI refers to the annual household income. This equation is commonly used in assessing the household's ability to afford the available housing units within an area, based on the purchase affordability [59]. In this analytical approach, the low PIR index reflects good housing affordability, while the high index portrays a high degree of unaffordability [57,60].…”

Section: Analytical Approach To the Housing Affordabilitymentioning

confidence: 99%

“…This type of zoning is applied in urban fringes, which are still rural areas. In the Equation 2, AI is the affordability index (which is also the monthly repayment amount), P the housing price (which is equal to the mortgage amount), i is the bank loan interest rate, n is the loan term (or duration in months) and I the monthly income [59,64]. In applying this formula, we used the down-payment ratio 30% of the household income, the loan term or repayment period of 20 years, and the loan interest rate of 10%, as set in the current affordable housing schemes of Rwanda [26].…”

mentioning

confidence: 99%

Access to Affordable Houses for the Low-Income Urban Dwellers in Kigali: Analysis Based on Sale Prices

Uwayezu

Vries

2020

Land

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The government of Rwanda recently passed housing development regulations and funding schemes which aim at promoting access to affordable houses for the low- and middle-income Kigali city inhabitants. The existing studies on housing affordability in this city did not yet discuss whether this government-supported programme is likely to promote access to housing for these target beneficiaries. This study applies the price-to-income ratio (PIR) approach and the 30-percent of household income standard through the bank loan to assess whether housing units developed in the framework of affordable housing schemes are, for the target recipients, affordable at all. It relies mainly on housing prices schemes held by real estate developers, data on households’ incomes collected through the household survey and a review of the existing studies and socio-economic censuses reports. Findings reveal that the developed housing units are seriously and severely unaffordable for most of the target beneficiaries, especially the lowest-income urban dwellers, due to the high costs of housing development, combined with the high profits expected by real estate developers. The study suggests policy and practical options for promoting inclusive urban (re)development and housing affordability for various categories of Kigali city inhabitants. These options include upgrading the existing informal settlements, combined with their conversion into shared apartments through the collaboration between property owners and real estate developers, the development of affordable rental housing for the low-income tenants, tax exemption on construction materials, progressive housing ownership through a rent-to-own approach, and incremental self-help housing development using the low-cost local materials.

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“…In all four cities, there were more sold houses than completed houses between 2013-2016. The prosperous demand in the housing market not only includes the high rigid demand brought by urbanization [40], but also the speculative demand that is evidenced by the high vacancy rates and "ghost towns" [41]. Housing purchasers lining up and rushing to purchase houses in the early morning frequently appear in the housing markets in the four cities.…”

Section: Direct and Indirect Effects Of Slm And Sdmmentioning

confidence: 99%

Urban Housing Price Fluctuations and Regional Systemic Financial Risks: Panel Spatial Economic Models in Jiangsu, China

Liu

Ren

2018

Sustainability

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The regional systemic financial risks driven by escalating urban housing prices have been of great concern recently. Based on the theoretical analyses on the mechanism of formation of regional systemic financial risk driven by urban housing price fluctuations, this paper builds panel spatial economic models to empirically analyze the relationship between urban housing price fluctuations and regional systemic financial risks, in addition to their spatial linkages, in 13 cities in Jiangsu, a representative province of China. The empirical results show the following. (1) The excessive investment or speculation of local governments, banks, real estate developers, individuals, and families on the housing market stimulate the escalation in urban housing prices, leading to the systemic financial risks; (2) Urban housing prices and the land supply price of local governments have strong spatial contagion effects among cities, which will diffuse risks to adjacent cities, causing regional systemic financial risk; (3) Compared with North Jiangsu, South Jiangsu has more serious investment expansion from real estate developers and stronger spatial contagion effects, suggesting the existence of heavier regional systemic financial risks derived from housing price fluctuations; (4) North Jiangsu has slightly stronger “imitative behavior” among local governments, and fewer “substitution effects” of central cities’ demand to adjacent cities’ demand than does South Jiangsu.

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Housing affordability and housing vacancy in China: The role of income inequality

Cited by 111 publications

References 13 publications

Real estate rental market: a 10-year bibliometric-based review

Real estate rental market: a 10-year bibliometric-based review

Access to Affordable Houses for the Low-Income Urban Dwellers in Kigali: Analysis Based on Sale Prices

Urban Housing Price Fluctuations and Regional Systemic Financial Risks: Panel Spatial Economic Models in Jiangsu, China

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