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.     

Family formation,parental background and young adults’ first entry into homeownership in Britain and Germany

Abstract

Although previous research shows that family dynamics and parental socioeconomic status influence the timing of young adults’ first entry into homeownership, much less is known about how the role of family factors may vary across countries with different housing systems. In this article, we use panel survey data from Britain and Germany to compare how family life course careers and parental socioeconomic background influence young adults’ initial entry into homeownership in these two divergent national contexts. The results show that in Britain, first-time homeownership transitions are tightly synchronized with partnership formation. By contrast, in Germany first moves into homeownership typically occur later around or after the arrival of children. Parental owner-occupation accelerates entry into homeownership in both contexts, while the effects of other parental characteristics are relatively muted. Furthermore, the results highlight how individual socioeconomic factors are critical determinants of entering owner-occupation. This is particularly true in Britain where there is a strong socioeconomic gradient in first-time homeownership transitions.     

Why is the German Homeownership Rate so Low?

The comparatively low homeownership rate in Germany is often referred to as a weakness of the German housing market. As it turns out, the situation in Germany is primarily due to four factors. First, rental housing makes up a larger share of the market because of an extensive social housing sector. The high quality standard of social housing and the fact that private investors were included in the subsidisation scheme from the beginning laid the foundation for a large private rental housing market. Second, homeowners in Germany did not benefit from the same high subsidies as in countries such as Spain or the Netherlands. Third, the German rental housing market was not rendered inoperative by excessive interventions in rents, as was the case in countries such as Spain and the UK. Finally, German house prices remained stable over a long period of time. Therefore, in view of these results, judgements on Germany's housing market should be revised.     

Varieties of Home Ownership: Ireland’s Transition from a Socialised to a Marketised Policy Regime

This article presents an historical institutional analysis of government supports for home ownership in Ireland. In doing so, it critiques the interpretation of the Irish home ownership system and, by extension, of this tenure’s meaning and role as a neo-liberal project which dominates the comparative housing literature. Rather than liberal policies, the article argues that between the 1920s and 1970s, government subsidies slowly expanded, in terms of generosity, variety and universal availability, to such a scale that Ireland’s home ownership regime was effectively ‘socialised’. This regime (not market forces) raised home ownership to 80 per cent of households. However, ideological, financial and socio-economic supports for this regime weakened and during the 1980s home ownership was marketised as universal subsidies were withdrawn and mortgage lending privatised. The implications of this redirection were initially disguised by low house price inflation, but when the economy boomed in the 1990s home ownership contracted sharply to levels which could be supported solely by the market.     

The Winners in China's Urban Housing Reform

Housing reform in China has proceeded on two tracks: privatization of public housing and development of a new private housing sector. During this period of transition, rents have remained relatively low in the remaining public housing, and purchase prices offered to occupants of public housing have been well below market prices. Although these rents and prices are partly based on known formulas, there is considerable variability in how much people pay for similar apartments. This study uses 2000 Census data to estimate the housing subsidy received by the remaining renters in the public sector and purchasers of public housing, based on private sector prices for housing of comparable quality and size. The paper also analyzes variation in the estimated discount from market prices that these people receive. The findings show that the biggest winners in China's transition from socialist housing allocation are those who were favored in the previous system, based on such factors as residence status, education and occupation.     

Community Land Trusts and Indigenous Housing in Australia—Exploring Difference-Based Policy and Appropriate Housing

Previous work has highlighted the primacy of non-economic rights in Indigenous housing objectives. This paper builds on that work and Sanders' other work demonstrating the limited relevance of ‘mainstream’ home ownership for many Indigenous communities, exploring whether models based on community land trust (CLT) principles might be appropriate for articulating Indigenous housing aspirations. The paper describes current Indigenous housing scenarios in urban, regional and remote New South Wales and Queensland, and findings regarding the resonance of CLTs with Indigenous housing objectives. While dominant policy and public discourses promote Indigenous home ownership as an economic development strategy, or as requiring the alienation of Indigenous lands, the research found neither to be primary sector imperatives. The paper draws on difference-based arguments regarding Indigenous affairs arguing that a focus on diversity emerging from informed Indigenous choice finds a role for policy supporting diverse Indigenous housing aspirations.     

Mixed Messages about Mixed Tenure: Do Reviews Tell the Real Story?

Mixed tenure is the predominant development and regeneration strategy and is a key component of UK housing and urban policy. It is purported to provide wide-ranging social, environmental and economic benefits to residents. While there is a large literature on mixed tenure, policy makers are likely to rely on reviews and summaries of the evidence rather than primary studies. But can they rely on such reviews? Using systematic review methods this paper critically appraises recent reviews for the evidence that mixed tenure policies and strategies have achieved any of these expected benefits. Of the six UK reviews of primary studies, most drew on less than half the available primary studies, none provided a critical appraisal of individual studies and made no comment on conflicting evidence between and within studies. While the reviews gave indications of the deficiencies of the evidence base, rather than focus on the implications of these deficiencies, four of the six reviews emphasised the positive effects of tenure mix.     

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.     

Tenant Empowerment Through Innovative Tenures: An Analysis of Woonbron–Maasoevers’ Client's Choice Programme

According to the recent Housing Memorandum (MVROM, 2000 MVROM 2000 Mensen-Wensen-Wonen: wonen in de 21e eeuw [What people want, where people live: housing in the 21st century] The Hague Ministry of Housing, Spatial Planning and the Environment  [Google Scholar] ), Dutch housing associations are expected to actively improve the control of tenants over their dwellings and their living environment and offer them more possibilities to choose their own type of tenure. Before the publication of the Memorandum, associations had already developed various innovative types of tenure, for example fixed rent contracts, tenant maintenance programmes and different forms of sale with discounts and risk-reducing conditions. With the introduction of these tenures, associations aim to contribute to their social objectives by improving tenants' satisfaction with their dwellings and to improve the market position of their stock as well. Our paper discusses innovative types of tenure that have been developed by the Dutch housing associations and their benefits and risks for tenant and landlord. We focus on the ‘Client's Choice’ programme that has been developed by the association WoonbronMaasoevers, which is recognised as a front-runner in offering households a wide range of choice in tenure and which is also illustrative of many of the benefits and risks of the innovative tenures.

We conclude that many of the innovative tenures, including the Client's Choice programme, can contribute to tenant empowerment and freedom of choice. However, low-income households will mostly have to keep relying on (social) rented housing and other forms of empowerment. For the landlord, the Client's Choice programme has the benefit of increasing cash flow, which can be used for (social) housing investments. However, there are also substantial financial risks, concerning the rate of sales, the development of market values and the potential costs of having to buy back all the dwellings at the end of their economic lifespan. Thus, the implementation of the Client's Choice programme on a large scale should be accompanied by measures to control or provide for these risks.     

Home ownership into the new millennium: A view from the margin

The late 1990s saw the beginnings of a decline in Australia's high rate of home ownership. This trend, especially among younger people, appears to be driven by a complex of economic, social and demographic forces. The paper looks at this development from one specific viewpoint: the phenomenon of mortgage default. Recent data suggests a rise in the number of people falling into arrears on their mortgages, in some cases to the point of default. The paper surveys this outcome and analyses the factors responsible. Data drawn from the experiences of a state government mortgage lender is used to test the factors isolated in the literature as significant in this respect.     

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.     

The Shaping of Housing Histories in Shanghai

During the last half century or so, China has probably experienced more dramatic and fundamental changes than most other societies. Housing and family life have been embedded in a series of far-reaching societal changes, notably the communist victory of 1949, the period of the Cultural Revolution and the more recent drive towards a more market oriented society, with housing reforms at the forefront. This paper examines the way in which housing histories among families in Shanghai were shaped by these events and by their interaction with specific intergenerational dynamics. The paper draws on research carried out in Shanghai in 2008 which involved in-depth interviews with individual members of three linked generations. The research provides a unique account of family housing histories over three generations against a particularly turbulent backcloth.     

Ending Security of Tenure for Social Renters: Transitioning to ‘Ambulance Service’ Social Housing?

Drawing on international comparative research, this paper examines recent policy moves to withdraw security of tenure in social housing in England and Australia. We contend that there are theoretical and empirical grounds for believing that tenure security is crucial both to social housing tenants themselves and to conceptualisations of the sector. Starting from this premise we analyse the underlying rationale(s) for phasing out open-ended social tenancies. First, we consider the ‘welfare dependency’ argument and the claim that ‘conditionality’ mechanisms will incentivise social renters to (re)engage with the labour market. Second, we interrogate the, arguably more influential, rationale which stresses equity considerations in ensuring that scarce social housing resources are targeted to those in greatest need. We conclude by reflecting on the implementation prospects for this high-level policy reform, arguing that individual social landlords' motivations will be crucial in shaping the practical impacts of the new regime.