FINANCIAL ARRANGEMENTS, HOUSING PRICES AND HOME OWNERSHIP

2006 ◽  
Keyword(s):  
Home Ownership ◽  
Housing Prices ◽  
Financial Arrangements

scholarly journals How Successful Was the New Deal? The Microeconomic Impact of New Deal Spending and Lending Policies in the 1930s

2017 ◽  
Vol 55 (4) ◽  
pp. 1435-1485 ◽  
Author(s):  
Price Fishback
Keyword(s):  
New Deal ◽  
Home Ownership ◽  
Positive Impact ◽  
Housing Prices ◽  
Geographic Location ◽  
Public Works ◽  
Ex Post ◽  
Consumption Activity ◽  
The Impact ◽  
The New Deal

The New Deal during the 1930s was arguably the largest peace-time expansion in federal government activity in American history. Until recently, there had been very little quantitative testing of the microeconomic impact of the wide variety of New Deal programs. Over the past decade scholars have developed new panel databases for counties, cities, and states and then used panel data methods on them to examine the impact of New Deal spending and lending policies for the major New Deal programs. In most cases, the identification of the effect comes from changes across time within the same geographic location after controlling for national shocks to the economy. Many of the studies also use instrumental variable methods to control for endogeneity. The studies find that public works and relief spending had state income multipliers of around one, increased consumption activity, attracted internal migration, reduced crime rates, and lowered several types of mortality. The farm programs typically aided large farm owners but eliminated opportunities for share croppers, tenants, and farm workers. The Home Owners' Loan Corporation's purchases and refinancing of troubled mortgages staved off drops in housing prices and home ownership rates at relatively low ex post cost to taxpayers. The Reconstruction Finance Corporation's loans to banks and railroads appear to have had little positive impact, although the banks were aided when the RFC took ownership stakes. (JEL D72, E61, L52, N41, N42)

scholarly journals International Real Estate Review

2018 ◽  
Vol 21 (3) ◽  
pp. 397-418
Author(s):  
Chin-Oh Chang ◽  
◽  
Shu-Mei Chen ◽  
Keyword(s):  
Housing Market ◽  
Home Ownership ◽  
Housing Prices ◽  
Housing Price ◽  
Poor Quality ◽  
Housing Demand ◽  
Vacancy Rate ◽  
Income Ratio ◽  
Holding Cost ◽  
Housing Vacancy

This paper discusses the contradicting phenomenon of housing demand in Taiwan. First, an introduction is given on the three primary characteristics of the housing market in Taiwan, which are a high housing vacancy rate, high housing prices and high home ownership. Secondly, we explore the motivation and preferences behind housing purchase. Since the housing price-income ratio continues to increase, unaffordable housing prices cause households to suffer from poor quality of life. The issues of housing justice are highlighted. Recently, the demographics and social values have rapidly changed. Therefore, even if homebuyers face unaffordable housing prices, they still prefer to buy housing instead of renting due to the traditional cultural belief that ¡§to have land is to have wealth¡¨. This has resulted in the phenomenon with high home ownership rate yet high housing prices. On the other hand, the low holding cost of housing and imbalance in urban and rural development perpetuate the high housing vacancy rate in the housing market. This results in an unhealthy housing market and misallocation of resources. Finally, recommendations for related government policy making are made based on the findings.

scholarly journals Choice between Rent and Mortgage: Evaluating the Net Present Value of Home Ownership

2019 ◽  
Vol 11 (4) ◽  
pp. 7-18
Author(s):  
O. I. Ivanov ◽  
M. M.S. Naimi
Keyword(s):  
Real Estate ◽  
Net Present Value ◽  
Home Ownership ◽  
Housing Prices ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Model Parameters ◽  
Macroeconomic Conditions ◽  
Financial Variables ◽  
Mortgage Interest

The article considers the problem of choosing between the ownership of residential real estate and its rental as a solution to the investment problem. The purpose of the article is to formalize this task using only financial variables (without explicitly including non-monetary preferences) and testing it on real Russian data on real estate and mortgage lending markets. The results can be used: a) at the house-hold level, which usually poorly take into account the financial side of the decision; b) at the level of macroeconomic policy to predict the dynamics of the mortgage market. We identified the following key model parameters: the expected rate of growth in housing and rental prices, mortgage interest, and the planned period of real estate ownership. The model demonstrates that for an average of Moscow or Russian housing with enough period of ownership, the purchase is generally more profitable in the cur-rent macroeconomic conditions. However, if the forecast for the dynamics of changes in housing prices worsens, when the nominal price increase is 5-8% lower than the discount rate, the answer may change in favor of renting. This is especially true in connection with the negative dynamics of real prices in the Russian housing market.  

Municipal Housing in America

2015 ◽  
Author(s):  
Margaret Garb
Keyword(s):  
20Th Century ◽  
Social Order ◽  
18Th Century ◽  
Home Ownership ◽  
Housing Prices ◽  
Housing Markets ◽  
The United States ◽  
Economic Incentives ◽  
Single Family ◽  
Home Construction

Housing in America has long stood as a symbol of the nation’s political values and a measure of its economic health. In the 18th century, a farmhouse represented Thomas Jefferson’s ideal of a nation of independent property owners; in the mid-20th century, the suburban house was seen as an emblem of an expanding middle class. Alongside those well-known symbols were a host of other housing forms—tenements, slave quarters, row houses, French apartments, loft condos, and public housing towers—that revealed much about American social order and the material conditions of life for many people. Since the 19th century, housing markets have been fundamental forces driving the nation’s economy and a major focus of government policies. Home construction has provided jobs for skilled and unskilled laborers. Land speculation, housing development, and the home mortgage industry have generated billions of dollars in investment capital, while ups and downs in housing markets have been considered signals of major changes in the economy. Since the New Deal of the 1930s, the federal government has buttressed the home construction industry and offered economic incentives for home buyers, giving the United States the highest home ownership rate in the world. The housing market crash of 2008 slashed property values and sparked a rapid increase in home foreclosures, especially in places like Southern California and the suburbs of the Northeast, where housing prices had ballooned over the previous two decades. The real estate crisis led to government efforts to prop up the mortgage banking industry and to assist struggling homeowners. The crisis led, as well, to a drop in rates of home ownership, an increase in rental housing, and a growth in homelessness. Home ownership remains a goal for many Americans and an ideal long associated with the American dream. The owner-occupied home—whether single-family or multifamily dwelling—is typically the largest investment made by an American family. Through much of the 18th and 19th centuries, housing designs varied from region to region. In the mid-20th century, mass production techniques and national building codes tended to standardize design, especially in new suburban housing. In the 18th century, the family home was a site of waged and unwaged work; it was the center of a farm, plantation, or craftsman’s workshop. Two and a half centuries later, a house was a consumer good: its size, location, and decor marked the family’s status and wealth.

scholarly journals Unit Optimalization Using the QM App for Windows on Perumahan Bukit Aradiar Permai Balikpapan

2021 ◽  
Vol 2 (2) ◽  
pp. 67
Author(s):  
Naila Anisa ◽  
Oryza Lhara Sari ◽  
Andika Ade Indra Saputra ◽  
Rosa Gallica ◽  
Dwigida Aprilla
Keyword(s):  
Home Ownership ◽  
Housing Prices ◽  
Housing Demand ◽  
City Government ◽  
Government Regulations ◽  
Migrant Communities ◽  
The North ◽  
East Kalimantan ◽  
The City ◽  
Spatial Plan

<p><em>Abstract</em></p><p>Housing demand continues to increase along with the increase in economic activity and the number of residents in the city of Balikpapan according to the 2017 Central Statistics Agency as many as 636,012 people to 645,727 people. The increase in housing demand is driven by the community's perspective that home ownership must be met while housing availability is limited. Based on the Balikpapan City Government in the 2012 Regional Spatial Plan, the plan to develop a spatial pattern of cultivation areas is more directed towards the north and east parts of the city so that population growth and development are not concentrated in the city center. This is a challenge for housing providers to meet the needs of long-lived communities and migrant communities by building housing located in the East of Balikpapan City as a place to live. The increase in land prices is so high in Balikpapan due to the movement of the capital from Jakarta to East Kalimantan, making housing prices also higher. The limited land owned by the housing developer must be utilized as well as possible for the construction of housing units, construction of facilities, and the existence of green space in the housing according to government regulations related to Balikpapan City RTRW. Land owned by housing developers that vary in shape is extremely limited with the type of house being built also varies and the price of the unit offered is different for each unit. For this reason, the developer must be able to optimize the production of the type of house that will be built based on government regulations and the National Spatial Plan, optimizing the land to get the optimum profit. This optimization uses the assistive application of QM for Windows and obtained 98 units for type 40/120 and type 45/120 for 102 units with optimum profit yielding Rp 104,292,098,201 for the BEP method.</p><p> </p><p><strong><em>Keywords:</em></strong><em> </em><em>Optimization</em><em>;</em><em> QM For Windows</em><em>;</em><em> Unit.</em></p>

scholarly journals Are Housing Prices Associated with Food Consumption?

2020 ◽  
Vol 17 (11) ◽  
pp. 3882
Author(s):  
Edwin S. Wong ◽  
Vanessa M. Oddo ◽  
Jessica C. Jones-Smith
Keyword(s):  
Fruit Juice ◽  
Home Ownership ◽  
Housing Prices ◽  
Local Area ◽  
Behavioral Risk ◽  
Purchasing Power ◽  
Housing Values ◽  
Explanatory Variables ◽  
Home Prices ◽  
Real Purchasing

Objective: Since January 2010, the U.S. has experienced economic recovery, including a 39% increase in home prices nationally. While higher home prices represent a wealth increase for some homeowners, it may decrease real purchasing power for others. The objective of this study is to examine the relationship between local area housing values and consumption of four food categories. Design: Observational study using data from the Behavioral Risk Factor Surveillance System between 2011 and 2015. Outcomes included number of times per week food was consumed and binary measures denoting consumption ≥2 times per day for four categories: vegetables, fruit, legumes and fruit juice. The primary explanatory variables were metropolitan/micropolitan statistical area home and rental price indices from Zillow. Differential associations by home ownership, age, race/ethnicity and education were examined. Results: Overall, housing values were not associated with intake of vegetables or fruit juice. Among homeowners, a $10,000 increase in home price was associated with small, but statistically significant reductions in fruit and legume consumption. These inverse associations were pronounced among Hispanic and non-Hispanic Black adults. Conclusions: Lower fruit and legume consumption associated with greater housing values may represent one of several explanations including a decrease in purchasing power, given increases in home prices and limited wage growth since 2010.

scholarly journals Credit Constraints and the Composition of Housing Sales. Farewell to First-Time Buyers?

2019 ◽  
Vol 18 (3) ◽  
pp. 1196-1237 ◽  
Author(s):  
Felipe Carozzi
Keyword(s):  
United Kingdom ◽  
Instrumental Variable ◽  
Home Ownership ◽  
Credit Constraints ◽  
Housing Prices ◽  
Housing Tenure ◽  
Financial Resources ◽  
Overlapping Generation ◽  
The United Kingdom ◽  
First Time

Abstract During the housing bust of 2008–2009, housing prices and transaction volumes fell across the United Kingdom. Although the drop in prices was similar across housing types, transaction volumes fell more for units at the lower end of the market. I document this fact and provide panel and instrumental variable estimates showing its link with tightening credit conditions in England and Wales during 2008. I then use an overlapping-generation framework to relate the change in the composition of sales with the reduction in loan-to-value ratios by British banks and to derive additional predictions. As down-payment requirements increase, young households with scarce financial resources are priced out by older owners who retain their previous houses as rental properties when trading up. Recent changes in aggregate housing tenure, disaggregated changes in renting, and sales in areas with different age compositions, are consistent with these predictions. The results presented here show how the composition of sales changes over the housing cycle and may inform ongoing policy discussions about reduced access to home-ownership by the young.

Housing Inflation: Policy Guidelines from Shariah Perspective

2019 ◽  
Vol 16 (1) ◽  
pp. 70-81
Author(s):  
Azrul Azlan Iskandar Mirza ◽  
Asmaddy Haris ◽  
Ainulashikin Marzuki ◽  
Ummi Salwa Ahmad Bustamam ◽  
Hamdi Hakiem Mudasir ◽  
...  
Keyword(s):  
Content Analysis ◽  
Housing Prices ◽  
Construction Materials ◽  
Housing Price ◽  
Developed Countries ◽  
Control Element ◽  
Recent Issue ◽  
Analysis Methodology ◽  
The Government ◽  
Developing And Developed Countries

The soaring housing prices in Malaysia is not a recent issue. It is a global phenomenon especially in developing and developed countries, driven by factors including land price, location, construction materials cost, demand, and speculation. This issue demands immediate attention as it affects the younger generation, most of whom could not afford to buy their own house. The government has taken many initiatives and introduced regulations to ensure that housing prices are within the affordable range. This article aims to introduce a housing price control element from the Shariah perspective, as an alternative solution for all parties involved in this issue. It adopts content analysis methodology on policy from Shariah approved sources.

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