Applying the AD-AS Model to the Housing Market of Post-Socialist Economies

We propose applying the standard aggregate demand and aggregate supply model (AD-AS) to the housing market. It is a very simple and intuitive tool that can help shed light on the major forces at play in the market and that can supplement the use of the general equilibrium and dynamic stochastic equilibrium models (DSGE). The latter models are very sophisticated and aim to cover many aspects of the economy, but they require a significant number of long time series to estimate the model parameters. However, in many countries, such as post-socialist countries, the time series are short. Those models moreover cover only real house prices, but in certain situations we should consider real and nominal prices at the same time.

31.3.2023 | Jacek £aszek, Krzysztof Olszewski | Volume: 10 | Issue: 1 | Pages: 14-26 | 10.13060/23362839.2023.10.1.550

Vertical Integration & Performance in Residential Real Estate

Vertical integration is a growth strategy whereby a firm engages in multiple stages of the value chain. Although the benefits of vertical integration are well documented, few studies have examined its relevance in real estate. In response to this lack of research, this paper explores tenant perceptions of property managers’ vertical integration and effectiveness. The results of this international study show the benefits of vertical integration extend to residential real estate, such that renters are more trusting, loyal, committed, and desirable when they perceive their property manager as vertically integrated. This paper also uncovers a concering finding that many tenants are living in unaffordable rental accomodations, requiring further research. This study contributes to a large body of vertical integration literature and extends the empirical examinations to real estate and property management.

30.3.2023 | Grant Alexander Wilson, Jason Jogia, Gabriel Millard | Volume: 10 | Issue: 1 | Pages: 1-13 | 10.13060/23362839.2023.10.1.549

‘The Social Managers Are Back in Town’: the Challenges of Housing Management in a Residualised Public Housing Sector

The residualisation of social housing sectors requires housing managers to intensify social management activities aimed at promoting tenants’ wellbeing and social cohesion. This paper discusses the implementation of such activities in the Italian public housing sector. It juxtaposes the vision conceptualised at the policy level with the daily activities of housing managers in practice on the ground and highlights the gaps between policy goals and realities of tenants’ involvement. While social management activities are expected to contribute to breaking the vicious circle of financial, technical, and social decline that has long affected public housing estates, the short timeframe of the planned interventions raises the question of the potential for structural change.

2.11.2022 | Igor Costarelli | Volume: 9 | Issue: 2 | Pages: 43-51 | 10.13060/23362839.2022.9.2.548

The Housing Satisfaction of Polish Households and Its Determinants

The level of satisfaction that households have with their housing is important for people to function properly, as it largely determines their life satisfaction. Housing satisfaction is a multidimensional concept that can be defined, measured, and analysed in various ways. The aim of the article is to identify the housing satisfaction of Polish households in terms of living space, housing standard, and housing expenses, and to identify the main determinants of housing satisfaction. Factors that have a major impact on housing satisfaction are classified based on a literature review. The sources of Poles’ housing satisfaction are identified using ordered logistic regression. This article is one of the first attempts to analyse housing satisfaction in a post-socialist Central and Eastern European economy.

25.10.2022 | Konrad ¯elazowski, Ewa Kucharska-Stasiak, Anna Miklaszewska, Beata Wieteska-Rosiak | Volume: 9 | Issue: 2 | Pages: 30-42 | 10.13060/23362839.2022.9.2.547

Housing Quantum and Innovative Building Systems in South Africa – the Affordability Perspective for 2020

The adoption of innovative building technologies (IBTs) and social welfare policies in South Africa has facilitated an increase in decent homeownership among low-income groups, thus improving their quality of life. However, due to the escalating costs of building materials, the capital and lifecycle costs of implementing these technologies may no longer be affordable. This research aims to provide a comparative evaluation of the affordability of some readily available IBTs in the South African construction industry, relative to existing homeownership subsidy grants. The method used involved the use of secondary data for these IBTs and the income constraint methods. The results showed that, apart from the technologies suitable for the provision of temporary structures, most of the other technologies were not affordable for the complete subsidisation of the top structure when both capital and lifecycle costs were used, except the Moladi and Robust structure IBTs under some low-income homeownership programmes. Further analysis using credit-linked subsidies revealed that the minimum household income required to achieve affordable homeownership (and their rankings) depends both on the evaluation technique (lifecycle or capital costs) and technology used. To improve affordability, any implementing government can either raise the amount of the top structure subsidy grant, promote the use of cheaper but durable IBTs, or promote the use in incremental building methods, such as the Enhanced People’s Housing Process (EPHP) for the case of South Africa.

13.10.2022 | Emmanuel Kabundu, Sijekula Mbanga, Brink Botha, Gerrit Crafford | Volume: 9 | Issue: 2 | Pages: 18-29 | 10.13060/23362839.2022.9.2.546

Diving in at the ‘Bottom End’: The Risk Awareness and Risk Management Practices of Sub £65K Landlords

Significant growth in Scotland’s private rented sector over the last 25 years has been led by a large number of individual lay investors/landlords who each own a smattering of properties. These characteristics, which are replicated in several countries where neoliberal housing policies prevail, have implications for the efficacy of PRS investments, but also for conditions and the stability of investment patterns within the sector. This study examines landlord investment risk awareness and behaviours via qualitative interviews with a small sample of Scottish landlords operating at the ‘bottom end’ of the market, which is disproportionately home to vulnerable groups and where some investment risks are believed to be more acute. The findings suggest that some landlords have relatively low levels of risk awareness, fail to adequately consider risk prior to investing in the PRS, have mixed success in selecting and implementing risk management and mitigation strategies, and incur significant risk-borne costs, which can limit returns.

12.10.2022 | Andrew Watson | Volume: 9 | Issue: 2 | Pages: 1-17 | 10.13060/23362839.2022.9.2.545
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