Intersections of inequality in homeownership in Sweden

Abstract

Inequalities relating to ownership of housing have become a major issue de jour in many Western societies. This article examines how the distribution of homeownership in Sweden relates to two factors widely seen as significant to such inequalities, namely parental tenure status and place of birth. We use longitudinal registry data to examine the bearing of these two factors on individual-level tenure progression since the beginning of the 1990s for persons at different stages of their housing careers. We extend existing understandings of Swedish homeownership patterns by demonstrating that inequalities relating to place of birth and parental tenure intersect with one another in ways that substantially advantage certain subgroups while disadvantaging others, and by demonstrating that experiences of entry into homeownership have in recent years been changing in markedly different ways for these different subgroups. Overall, Swedish homeownership inequalities, far from dissipating, appear to be hardening along existing lines.     

‘You can’t put your roots down’: housing pathways,rental tenure and precarity in older age

Abstract

In light of housing affordability concerns, we examine older people’s experiences of renting within a context of enduring home-ownership norms and aspirations. Adapting Clapham’s housing pathways framework, we ask: How is rental tenure experienced by older people who have encountered precarity in their housing history? Drawing on interviews with 13 older tenants, we observe the uneasy relationship between tenure insecurity and housing quality, and tensions between choice and luck in experiences of renting in later life. Three pathways related to renting in older age were apparent: life-long renting; loss of homeownership through adversity; and deliberate decisions to transition to renting. We note that challenges encountered in current and previous housing situations lead to diverse narratives of precarity in later life. These precarious experiences can be exacerbated by intersecting uncertainties associated with health, financial and personal circumstances. Older tenants’ housing pathways and experiences illuminate ways in which precarity can disrupt opportunities for ageing well and ageing in place.     

Marriage-induced homeownership as a driver of housing booms: evidence from Hong Kong

Abstract

Buying a home for marriage is customary in many societies. Traditionally, therefore, young couples getting married is a key driver of demand for homeownership. Yet the idea of marriage-induced demand for homeownership is a relatively underexplored component of housing price change. We examine the role of marriage-induced demand for homeownership in Hong Kong, a relatively self-contained housing market with fewer options for migration than most large cities. We use an instrumental variable strategy to test the hypothesis that more unmarried individuals at the prime age for marriage increases housing prices. We find that an additional one thousand marriage-aged but unmarried individuals leads to a seven per cent increase in housing prices. These findings confirm the importance of demographic factors such as cohort size and marriage rates on housing price projections, housing needs assessments, and housing policy.     

Socio-demographic Variations of Homeowners and Differential Effects of Parental Homeownership on Offspring's Housing Tenure

Previous research indicates a positive effect of parental homeownership on offspring's homeownership, but rarely tests whether the effect is due to self-selectivity. In the context of socio-demographic variations of American homeowners, this study extends previous research by examining the differential effects of parental ownership of a single-family home. The current study employs the Panel Studies of Income Dynamics data, using propensity score matching to address self-selection problems. The results suggest that the intergenerational effect of parental housing tenure has been differentiated by race, income and the housing tenure history of parents while reinforcing inequality. Even within the same housing tenure, offspring of socio-economically disadvantaged groups are less likely to take advantage of parental homeownership in attaining a single-family owner-occupied home.     

Parental background and housing outcomes in young adulthood

Abstract

Scholars and policy-makers are concerned that young adults’ housing opportunities are becoming more dependent on their family background. This could hinder social mobility and exacerbate inequality. Using data from three cohorts of young people drawn from the Office for National Statistics Longitudinal Study of England and Wales, this study examines how parental attributes in childhood are linked to young adults’ housing outcomes two decades later. The results show that young adults’ housing outcomes have changed considerably over time and are persistently stratified by parental class and tenure in ways that vary by gender. Housing outcomes have become somewhat more polarised by parental tenure over time as the children of renters became relatively less likely to enter homeownership and more likely to rent privately. This suggests that renters became an increasingly ‘marginalised minority’ in the late twentieth century, with consequences for their children’s housing careers and future social inequality.     

Historicizing housing typologies: beyond welfare state regimes and varieties of residential capitalism

Abstract

Comparative housing scholars have, for many years now, imported typologies from non-housing spheres to explain housing phenomena. Notably, approaches attempting to account for divergent housing tenure patterns and trends have frequently been organized around typologies based on the assumption that a causal relationship exists between homeownership rates and the type of welfare regime or, more recently, the variety of residential capitalism a country exhibits. While these housing-welfare regime approaches have provided important research tools, we argue that the typologies they generate represent cross-sectional snapshots which offer little enduring cogency. Based on long-run data, we show that the postulated associations between homeownership, welfare and mortgage debt are historically contingent. This paper makes the case for employing historicized typologies, proposing a country-based typology linking historical housing finance system trajectories to urban form and tenure, with regional dimensions. We argue the need for typologies which can accommodate longitudinal, path-dependent dimensions, both within and between countries.     

Joint building ventures as a new instrument for urban development: a qualitative analysis of Baugruppen in Freiburg,Germany

Abstract

This article reviews a special type of collaborative housing that has emerged in the German housing market in response to the growing need for urban housing and increasing focus on active and networking housing communities and stable neighbourhoods. Joint building ventures are projects in which private individuals jointly establish residential property. However, the academic literature on this issue is underdeveloped. To foster a better understanding of the topic, this article focuses specifically on detecting the strengths and weaknesses of this type of joint building venture and its contribution to a higher homeownership rate. The qualitative interview data were collected between December 2015 and March 2016 in Freiburg, Germany. The findings reveal perceived advantages in terms of supportive networks, customised solutions and potential cost savings, whereas the identified disadvantages are high financial risks, mutual dependencies and personal efforts. Practical implications and avenues for future research are derived.     

The affordability of “affordable” housing in England: conditionality and exclusion in a context of welfare reform

Abstract

Contemporary debates around affordability have largely focused on homeownership and private renting. This article considers the affordable social rented sector in England, in which reforms to social welfare assistance, reduced security of tenure, and a shift towards mid-market rents, are changing access to ‘affordable’ housing for those on the lowest incomes. Drawing on in-depth interviews with housing associations and stakeholders, the article highlights the increasing use of affordability assessments for prospective tenants. These assessments interact with mid-market rental products to increase the potential for exclusion from affordable housing on the grounds of ability to pay. This conditionality is applied not only at the point of tenancy access, but also at renewal of fixed-term tenancies. The research highlights that the combination of welfare and housing policies, in the context of a financialising housing association sector, has the potential to erode access to social housing for those who are perceived as a financial risk, reshaping the focus of social housing.     

The growth of mass home ownership in Taiwan

With the increasing growth of home ownership inEuropean countries, the issue ofrecommodification of housing is being widelydiscussed. The significant amount ofinternational research focused on housing hasdrawn attention to the changing structure ofthe housing stock and the consequences of suchchange. Research is gradually shifting from apolicy-centred perspective focusing on socialhousing to a wider view of how the housingmarket operates. In line with this trend inhousing research, this paper seeks to explainthe development of housing systems in Taiwanand to show how the high percentage of homeownership is related to the different routes bywhich new homeowners gain access to the sector.With the growing influence of market-basedhousing provision, home ownership depends moreon the deepening involvement of the financialsystem, especially at the lower end of themarket. Along with the changes in the widersocial context – such as the downturn of thehousing market, the wider economic recession,the rising rate of unemployment – the housingsystem that is dominated by mortgaged homeownership is in crisis.     

A critical analysis of research of a mass-housing programme

ABSTRACT

A recent expansion of mass-housing programmes has occurred in emerging economies. The analysis of research on programmes raises questions about what type of research is produced and what its impact is on housing. The Brazilian ‘My House, My Life’ (Minha Casa, Minha Vida – MCMV) programme demonstrates that more of the same type of housing is produced and that the focus of most research repeats the same mistakes. Three million homes have been built and the research community has examined the programme’s social, economic and environmental impacts. A total of 2477 scientific studies on MCMV are analyzed. Few studies were found to assess living conditions from a user perspective at the residential unit scale. Although improvements have occurred on some social issues, the siting of housing on the urban periphery is problematic for urban mobility, social segregation and aesthetic monotony. Also, the design model does not respond to the diverse needs of inhabitants. Opportunities are identified for actions and essential missing research on mass housing. Retrofit strategies are urgent and social cost studies should induce change to the design model. Evidence-based research is needed to support policies and design processes for affordable and quality housing solutions that value users, their needs and aspirations.     

Rethinking Federal Housing Policy

Problem: Federal housing policy is made up of disparate programs that a) promote homeownership; b) assist low-income renters’ access to good-quality, affordable housing; and c) enforce the Fair Housing Act by combating residential discrimination. Some of these programs are ineffective, others have drifted from their initial purpose, and none are well coordinated with each other.

Purpose: We examine the trends, summarize the research evaluating the performance of these programs, and suggest steps to make them more effective and connected to each other.

Methods: We review the history of housing policy and programs and empirical studies of program effectiveness to identify a set of best principles and practices.

Results and conclusions: In the area of homeownership, we recommend that the federal government help the nation's housing markets quickly find bottom, privatize aspects of the secondary mortgage market, and move to eliminate the mortgage interest deduction and replace it with a 10-year homeownership tax credit. In the area of subsidized rental housing, we recommend that the current system of vouchers be regionalized (or alternatively, converted into an entitlement program that works through the income tax system), sell public housing projects to nonprofit sponsors where appropriate, and eliminate some of the rigidities in the Low Income Housing Tax Credit program. In the area of fair housing, we recommend that communities receiving Community Development Block Grants be required to implement inclusionary zoning programs.

Takeaway for practice: In general, we recommend that federal policy build on proven programs; focus on providing affordable housing for low- and moderate-income families and provide the funding to meet that goal; avoid grandiose and ideological ambitions and programs; use fewer and more coordinated programs; offer tax credits, not tax deductions; and promote residential filtering.

Research support: Partial funding support was provided by the National Science Foundation.     

Social Capital and Housing Tenure in an Adelaide Neighbourhood

In this article we compare and contrast elements of social capital across different housing tenures in an Adelaide neighbourhood. Using the results of 530 self-completion questionnaires and in-depth qualitative interviews with 16 people we assess perceptions of conflict across housing tenures and between socio-economic groups, feelings of acceptance and belonging in the local neighbourhood, and levels of involvement in local formal and informal networks. While only a small number of questionnaire respondents reported negative views of socio-economic diversity in the area a theme emerging in the qualitative data indicated that housing tenure was relevant to some of these negative perceptions. Respondents from across different tenure types also reported differences in feelings of acceptance in the neighbourhood, and involvement in formal and informal networks. The study findings suggest that housing tenure is relevant to the development of neighbourhood-based social capital, and that this factor needs to be considered by social planners, housing policy makers and others involved in implementing social mix policies. In addition, the findings indicate the need to consider the community housing and public housing tenures in their own right, given the different models of housing provision, rather than collectively under the common banner of social housing as most research studies do. It is recommended that the full diversity of housing tenure is considered in any future analysis.     

Changes in transitions from private renting to homeownership in the context of rapidly rising house prices

A period associated with the emergence of the current housing crisis in Britain provides a testbed in which to investigate household tenure choice in the context of rapidly rising house prices. We compile a bespoke data-set combining data from the British Household Panel Survey and sources of local and national housing and mortgage market information covering the period 1994–2008. During this period, we observe three key changes in behaviour associated with the emergence of the housing crisis: (i) increasing acceptance of long-term renting; (ii) the emergence of local house prices as a factor inhibiting entry to homeownership at district level; and (iii) the cessation of moving to a lower cost district as a strategy to enter homeownership. We interpret these findings as some private tenants reducing their aspiration for homeownership, and those seeking entry to homeownership shifting strategy from moving to cheaper districts in favour of staying put and saving.     

Social Capital and Housing Tenure in an Adelaide Neighbourhood

In this article we compare and contrast elements of social capital across different housing tenures in an Adelaide neighbourhood. Using the results of 530 self-completion questionnaires and in-depth qualitative interviews with 16 people we assess perceptions of conflict across housing tenures and between socio-economic groups, feelings of acceptance and belonging in the local neighbourhood, and levels of involvement in local formal and informal networks. While only a small number of questionnaire respondents reported negative views of socio-economic diversity in the area a theme emerging in the qualitative data indicated that housing tenure was relevant to some of these negative perceptions. Respondents from across different tenure types also reported differences in feelings of acceptance in the neighbourhood, and involvement in formal and informal networks. The study findings suggest that housing tenure is relevant to the development of neighbourhood-based social capital, and that this factor needs to be considered by social planners, housing policy makers and others involved in implementing social mix policies. In addition, the findings indicate the need to consider the community housing and public housing tenures in their own right, given the different models of housing provision, rather than collectively under the common banner of social housing as most research studies do. It is recommended that the full diversity of housing tenure is considered in any future analysis.     

How Much Extra Affordable Housing is Needed in England?

Booming housing markets in the UK have once again brought into sharper focus the issues of housing affordability, housing need and ‘affordable housing’ solutions. This paper reviews issues in the measurement of problems of affordability, particularly access to homeownership, and reports on modelled estimates for England at regional and local levels. These models provide a method for comparing pressures in different areas, but also for measuring market change over time and its relationship with the economy. They are also useful for identifying and assessing the scope for ‘intermediate’ forms of provision between conventional homeownership and social renting. Measures of recent and prospective needs for additional affordable housing provision, derived from this analysis of affordability, are presented and assessed. These findings are linked to a broader contemporary policy debate about housing and planning policy in England.     

Housing tenure, housing costs and poverty in Flanders (Belgium)

This article deals with the relation betweenhousing and poverty in Flanders (Belgium). Wedescribe how home tenure and housing costsdeveloped differently for different incomegroups. Furthermore, we assess the impact ofthese evolutions on poverty and welfaredistribution. Our analyses show that in theobserved period homeownership increasedstrongly among higher-income categories andremained stable or even decreased amonglow-income households. Average housing costsincreased more for low-income households thanfor high-income households, leading to a sharpincrease in problematic rent-to-income ratiosfor the former. It appears that especially theprivate rented sector is problematic. Thesocial rented sector is evaluated ratherpositively. Taking account of housing costsleads to higher poverty levels and higherwelfare inequality compared to the situationwhere only current income is used to calculatepoverty and welfare distribution.     

Exploring ‘Housing Asset-based Welfare’. Can the UK be Held Up as an Example for Europe?

In the UK, homeownership has become increasingly important as a financial asset used for welfare needs, particularly during old age. It has been suggested that other European countries will follow the example of the UK. Traditionally, homeownership has been regarded positively because of the low housing expenses associated with outright ownership and the financial benefit of having a nest-egg that can be released, if needed, by selling. New mortgage equity release products reduce liquidity constraints and are regarded as promising in the context of changing welfare states. This research focuses on household strategies. It finds that housing assets play a role in households' financial planning in all countries within the study, particularly where welfare levels are low or decreasing. Homeownership was used in the traditional way in all countries, but it is only in the UK that households have adopted mortgage equity release products to cash in their housing equity for welfare needs.     

Investigating housing tenures beyond homeownership: a study of informal settlements in Kolkata,India

Improving the lives of households in informal settlements is a major development challenge. Though ownership is the predominant housing tenure arrangement pursued in national and international housing policies, there is a growing consensus that forms of tenure beyond homeownership may provide greater benefits to some households. In Kolkata, informal settlements (bastis) are the primary source of affordable housing for the urban poor. Relying on detailed household survey data, we investigate the utility gained from the diversity of housing tenure arrangements in bastis and the factors that increase the length of time a household lives in a settlement, using multinomial logit and ordinary least squares regression specifications. Our analyses show that in comparison to ownership, leasing or renting benefits large households and new migrants. Our findings suggest that policies targeted at households who rent and lease, along with improving housing and supporting infrastructure, can be effective mechanisms for improving household well-being.     

The German housing system: fundamentally resilient?

The initial research question was: How can we explain the fact that the German housing system was seemingly unaffected by the financial crisis? The relative macro-economic stability of the German economy is part of the story, but the initial question led to a more fundamental analysis of why there had been no precrisis excesses in the German housing market. The longer term lack of volatility in Germany is just as in need of explanation as the excesses elsewhere. An important part of the explanation may be the particular tenure structure of the German housing market—which is characterized by a low homeownership rate and a large market share for private landlords. This structure was shaped over time by institutional development. In particular, mortgage finance systems and habits did not develop independently of that tenure structure. Equally that tenure structure arises in part from regulation and housing subsidy systems that do not favour homeownership.