THE GAP BETWEEN HOUSING AFFORDABILITY AND AFFORDABLE HOUSE: A CHALLENGE FOR POLICY MAKERS

Much of the literature defines housing affordability as the relationship between household income and housing expenditure (housing costs). Affordable housing refers to the affordability of the household to own or rent the housing. Housing becomes unaffordable if the housing costs exceed the income of the household. Thus, the objective of this paper is to define the difference between housing affordability and an affordable house and to identify the factors influencing the gap between housing affordability and an affordable house. To achieve the objectives of this paper, 28 variables or factors have been identified. These variables or factors are then analysed by using the descriptive method of analysis. After analysing 28 identified variables or factors, the findings show that a high house price, a high monthly repayment, the type of property ownership and the land area either extremely or moderately influenced the gap between housing affordability and an affordable house.

Understanding the behaviour of house prices and household income per capita in South Africa: application of the asymmetric autoregressive distributed lag model

Purpose Homeownership provides shelter and is a vital component of wealth, and house purchase signifies a lifetime achievement for many households. For South Africa confronted with social and structural challenges, homeownership by the low and lower middle-income household is pivotal for its structural transformation process. In spite of these potential benefits, research on the affordable housing market in the context of South Africa is limited. This study aims to contribute to this knowledge gap by answering the question “do changes in household income per capita have a symmetric or asymmetric effect on affordable house prices?” Design/methodology/approach A survey of the international literature on house prices and income revealed that linear modelling that assumes symmetric reaction of macroeconomic variables dominates the empirical strategy. This linearity assumption is restrictive and fails to capture possible asymmetric dynamics inherent in the housing market. The authors address this empirical limitation by using asymmetric non-linear autoregressive distributed lag models that can test and detect the existence of asymmetry in both the long and short run using data from 1985Q1 to 2016Q3. Findings The results revealed the presence of an asymmetric long-run relationship between affordable house prices and household income per capita. The estimated asymmetric long-run coefficients of logIncome[+] and logIncome[−] are 1.080 and −4.354, respectively, implying that a 1% increase/decrease in household income per capita induces a 1.08% rise/4.35% decline in affordable house prices everything being equal. The positive increase in affordable house prices creates wealth, helps low and middle-income household climb the property ladder and can reduce inequality, which provides support for the country’s structural transformation process. Conversely, a decline in affordable house prices tends to reduce wealth and widen inequality. Practical implications This paper recommends both supply- and demand-side policies to support affordable housing development. Supply-side stimulants should include incentives to attract developers to affordable markets such as municipal serviced land and tax credit. Demand-side policy should focus on asset-based welfare policy; for example, the current Finance Linked Income Subsidy Programme (FLISP). Efficient management and coordination of the FLISP are essential to enhance the affordability of first-time buyers. Given the enormous size of the affordable property market, the practice of mortgage securitization by financial institutions should be monitored, as a persistent decline in income can trigger a systemic risk to the economy. Social implications The study results illustrate the importance of homeownership by low- and middle-income households and that the development of the affordable market segment can boost wealth creation and reduce residential segregation. This, in turn, provides support to the country’s structural transformation process. Originality/value The affordable housing market in South Africa is of strategic importance to the economy, accounting for 71.4% of all residential properties. Homeownership by low and lower middle-income households creates wealth, reduces wealth inequality and improves revenue collection for local governments. This paper contributes to the empirical literature by modelling the asymmetric behaviour of affordable house prices to changes in household income per capita and other macroeconomic fundamentals. Based on available evidence, this is the first attempt to examine the dynamic asymmetry between affordable house prices and household income per capita in South Africa.

Natural Fiber Waste from Palm Oil Tree: An Overview of Potential Usage for Indonesia’s Affordable House Building Materials

The palm oil plantation in Indonesia is an overgrowing industry that also poses significant environmental waste problems. The industry produces numerous unused biomass wastes such as EFB (Empty Fruit Bunch), PKS (Palm Kernel Shell), tree trunks, fronds, etc. On the other hand, the national housing backlog number in 2019 had reached 7.6 million units. The government had launched several housing programs to tackle this ever-repeating issue. Yet, all of the plans failed to solve the housing shortage. A new approach is needed to provide a cheap, affordable, and more environmentally friendly affordable house. Previous studies proved that palm oil fiber waste could be altered into building materials such as lumber and other biocomposites like particleboard, fiberboard, plywood, etc. Consequently, by using the construction scheme in the RSH affordable house program released in 2002, palm oil fiber waste should be able to displace conventional wood in most of its parts. That is why there is no reason to halt implementing palm oil fiber waste as building materials, especially to build an affordable house. Therefore, the burden of Indonesia's never-ending housing backlog problems should be eased by converting its over-abundant palm oil fiber waste as its building materials new renewable sources. Keywords: affordable house; alternative materials; bio-composite; palm oil fiber waste

Buckling capacity of cold-formed steel structure column member with perforation section in affordable house framing system

Purpose The purpose of this study is to know the buckling capacity for cold-formed C-column with perforation. Cold-formed C-column have been used in interior wall construction. The concept of web perforation in the column has been introduced to the construction sector to overcome the issue of material cost. Design/methodology/approach Initially, the determination of the suitable spacing for the space column for the affordable house is investigated. Analysis house frame has been done in STAAD Pro. (Staad Pro, 2003) software using cold-formed C-column without perforation. Perforation with circular shape has been used in this study with the size of 0.4, 0.6 and 0.8 D (D = 180 mm). Perforation spacing is 150, 250 and 350 mm are adopted. Findings For the specimen with 0.4 D perforation and the edge distance is 539 mm have the highest buckling capacity (26.59 kN). Reduction of buckling capacity is 5.31% from cold-formed C-column without perforation and reduction of the volume is −2.16%. For the same case with 0.8 D perforation, the buckling capacity reduces with 22.52% and volume is −6.85%. Originality/value The conclusion of this analysis, C-column without perforation have higher buckling capacity compare to C-column with perforations.

AN ASSESSMENT OF HOUSING AFFORDABILITY INDEX AT DISTRICTS LEVEL IN KELANTAN

The purpose of this paper is to assess the housing affordability level in every district in Kelantan. The goal of this study is to determine the affordability level and the affordable housing price in every district in Kelantan. In order to determine the housing affordability level, the Price-to-Income Ratio approach or known as median multiple is used in this study. The study found that the overall affordable leve in Kelantan from 2012, 2014 to 2016 has increased from 4.5 to 4.8 to 5.4 which clearly showed the level worsen over the years. In term of afforadablee housing price, the Kelantan median house price for 2016 was RM199,900 but using median multiple calculation using the income data, the maximum affordable house price should be within RM 110,844, which clearly showed that the current housing prices is severely unafforable for Kelantan State.

Single Mother Affordability to Own a House

The issue of housing affordability often involves middle and lower income groups. However, the problem of housing affordability is more critical, experienced by single mothers due to single mother is an individual who is the head of the family. The objective of this research to examine the factors that influences the problem of single mothers to own their own house. In addition, this research also to identify the type and price range of affordable house for single mothers. The process of the study begins from problem identification, literature review, case study, data collection, analysis and interpretation of research findings. Questionnaires are used to collect the primary data from respondents while literatures reviews are the secondary data for the research. The sample of this research includes 95 single mothers who are working and registered under The Ministry of Women and Family Darul Takzim. The random sampling technique was the method of sampling utilized. The findings of the research found out that there are a few main factors which influence the affordability of single mother to own their own house influenced by socio economic status such as race, age, single mother status, level of education, working period, the number of household, lower household incomes and house prices in the market. Besides, the type of affordable house may afford by single mothers is single storey and double storey house in a range price between RM50,000 to RM100,000. They are also may own an affordable housing provide by government which is single and double storey low and medium cost in range RM50,000 to RM80,000. In the end of study, various proposals are recommended such as government should control the house price in the market, loosening the loan conditions, the payment of 10 percent deposit and also loosening the rate interest. For developer, they should increase the number of housing for target groups and carry out the market study to identify the affordable housing price.