The Underdeveloped Offering of Housing Ethics: New Possibilities for Housing Studies
Despite the significant presence in other disciplines, ethics remains a topic that is under-explored in a housing context. This paper posits the implications of employing a framework of housing ethics, demarcating ethics from a notion of politics. The central contention: that housing ethics already exist and structure housing systems and approaches, as evidenced in three examples from policy, theory and philosophy. This framework, with an outlined two-part grammar, illuminates the importance of descriptive claims behind the normative context that is of great interest to housing studies. Therefore, the argument presented does not just valorise the framework of housing ethics but too the necessity of philosophical engagement in the assumptions underpinning housing research, namely any foundational claims on the phenomenon of housing and the human relationship to it.
The Recent Rise in Mid-Term Rentals in Barcelona: Causes and Implications
Recent studies identify an increase in mid-term rentals (MTR) in cities like Barcelona and relate it to the growth of temporary populations and changes in labour dynamics in the post-Covid era. By analysing MTRs registered between 2018 and 2023, this study aims to quantify changes in rents and the number of contracts of this kind in three municipalities in the Barcelona area. The results show that MTRs are concentrated in Barcelona, where their number almost tripled and the average rent grew fivefold over the period analysed. The rise started in 2022, and this coincided with when the law to regulate residential rentals in Spain was announced rather than when it came into force. The shift in properties from the residential market to the barely regulated and more profitable mid-term market, hinders access to housing for the low-income population. This problem underscores the urgent need for the regulation of MTRs.
Introduction to the Special Issue: The View from Housing - The Contributions of Housing Research to Social and Behavioural Theory
Introduction to the Special Issue: The View from Housing - The Contributions of Housing Research to Social and Behavioural Theory
The Influence of Interest Organisations on Swedish Rental Housing – Implications for Corporatist Theory
Although academic definitions of ‘corporatism’ differ, the concept is generally about organisational influence on state politics. Around 1980, Sweden was regarded as the archetype of welfare-state corporatism, but around the turn of the millennium the broad representation of organised interests in state politics was largely abolished. However, in the housing sector, strong interest organisations have continued to play a dominant and institutionalised role. Rents are negotiated collectively between organisations of estate owners and tenants, and these organisations also have strong influence on rental legislation and on housing policy more generally. We argue that this system should be seen as corporatist and to that end suggest a somewhat modified version of Philippe Schmitter’s well-established definition of corporatism. We claim that our ‘view from housing’ may contribute to the increased relevance of corporatism theory also in studies of other welfare sectors where market distribution is increasingly important.
Theorising Housing Precarity Governance from A Relational Perspective: Affective Attachment of Debtors
This article aims to theorise the housing governance of vulnerable debtor populations from a relational perspective, developing the affective attachment concept. While the emotionality of housing has been studied in housing research, the relational understanding of affects/emotions offers a fruitful perspective for understanding the interface of power (re)production between subjects and structures. The argument is supported by a literature review and excerpts from a qualitative analysis of 30 interviews with overindebted people and 20 institutional actors which demonstrate the relevance of emotions in attachment to the precarious housing market. Linking the relevance of affective attachment with moral discourses, the article shows the potential to better understand how the (self)control and (self)discipline–(self)governance–of vulnerable people could be performed by morally modulated affects and emotions.
The Endowment Effect and Housing Studies: The Role of Multiple Reference Points
One of the most researched and proven behavioural biases is the endowment effect, which manifests in people's higher valuation of goods they own relative to goods they do not. Loss aversion is considered the main cause of the endowment effect because of the assumption that losses loom larger than gains. Whether decisions are framed as either gains or losses depends on the adopted reference point, which is usually taken as current ownership. Mainstream behavioural economics also postulates that the decision-making process involves multiple reference points. This study aims to provide new arguments in favour of the existence of multiple reference points affecting the formation of the endowment effect based on theoretical reflections and empirical evidence from the housing market. A critical review of the literature, as well as an empirical study, revealed that there are multiple reference points in the housing market, the interaction between which leads to the endowment effect.
Introduction to the Special Issue: ‘Facing the Housing Affordability Crisis in Southern Europe: Housing Policies in the Spotlight’
Introduction to the Special Issue: ‘Facing the Housing Affordability Crisis in Southern Europe: Housing Policies in the Spotlight’.
Portuguese Reactions to the Housing Crisis: Is It Possible to Move from the Residualisation to Post-neoliberalisation of Housing Policies?
For decades, the analysis of housing policies in Portugal has focused on its distinct trajectory compared to those of other countries in western and northern Europe. However, the rise of the housing affordability crisis and the civic, media and political prominence that the housing issue has acquired in recent years have highlighted important similarities (despite some key specifics) with the dynamics that have been occurring internationally. This article discusses Portuguese political reactions to the affordability crisis. It presents a critical discussion of the ambitious multi-measure policy package ‘Mais Habitação’ (More Housing), including its content, the political conditions of its introduction, and its public reception - in the light of the recent international debates on the paths, possibilities, and obstacles to the post-neoliberalisation of housing policies.
New Politics for Housing: Unpacking the Role of Financial Actors in Promoting the Financialisation of Housing in Portugal
Housing is increasingly playing a key role in the global economy, acting as a catalyst for capital expansion, international investment, and wealth accumulation. The transformation of the Portuguese housing system, which has been influenced by financial actors, illustrates the expansion of finance into housing systems. This paper unpacks recent housing policy and reports on the dimensions of the changes and alterations in financial actors, markets, practices, measurements, and narratives dominant in Portugal. We find that while the liberalisation of the rental market has sparked interest from private sector investors in recent years, the anticipated improvements in housing provision and affordability have not been realised thus far. These findings shed new light on the key features of the financialisation of the Portuguese housing sector and the extent of the political power of financial actors in promoting the financialisation of housing.
Less Access and More Inequality: Evidence of and Responses to the Housing Affordability Crisis Faced by Young People in Spain’s Larger Cities
The sharp rise in rental prices in the absence of a decommodified housing sector has led to a growing mismatch between the Spanish housing system and households’ needs, especially in large cities. This article analyses the impact of recent housing market dynamics on housing access problems faced by young people in Madrid and Barcelona and the implications of Spain’s recently approved Right to Housing Law. Empirical evidence suggests that young people are increasingly facing exclusion from access to housing, as well as rising inequality in relation to the process of leaving the parental home, which varies depending on where they live. In this regard, the new Housing Law sets the course towards a more balanced and fair housing system. While it generates controversies and challenges, it also reflects the need for multifaceted and multi-scalar measures to address the current housing emergency, requiring greater cooperation between different levels of government.
Chronicles from a Walled-Up Ward: The Black Hole of Public Housing Policies and Its Consequences in a Medium-Sized Italian City
The research aims to shed light on the case of a medium-sized town in the northeast part of Italy, where a semi-central neighbourhood, encompassing a triangle of streets and hundreds of apartments, has recently acquired the reputation of being an ‘urban social problem’, and is described by the local media as a ‘drug-dealing suburb’. Specifically, since 2021, most of the state- and company-owned buildings have been completely bricked up, families evicted, and apartments and gardens left in a state of complete abandonment, without giving residents any explanation, and without a plan for the future, except demolition. Using ethnographic and qualitative methodologies, this study seeks to investigate the reasons why such negative narratives have quickly become established in common discourse and are then immediately amplified by the media until they remain the only description of the neighbourhood, and to examine how residents have strived and worked to restore the centrality of their ‘sense of place’. In the conclusions, an attempt will be made to sketch out an answer to the classic question of whether a turnaround can be more easily brought about by large urban renewal plans, or whether community involvement in a network of ‘small plans’ might be more effective.
The Impact of Ukrainian War Refugees on Rental Prices in Europe: A Panel Data Analysis
This study examines the impact of Ukrainian war refugees on actual rental prices in 27 European countries. Using panel data regression analysis for the period 2017Q1-2023Q1, the study found that inflation, house price growth, and interest rates were the primary drivers of rental price growth after February 2022. The study also showed that an inflow of Ukrainian refugees equal to 1% of the host country’s population translated into an increase in rental price growth of 0.2-0.3%, but this effect was not statistically significant at the 5% probability threshold. Auxiliary estimations revealed the statistical significance of Ukrainian migration when adjusting for the stringency of rent controls and size of the rental market.
How the War between Russia and Ukraine Caused a Multi-Cycle in the Polish Housing Market
We examine the effects of the war between Russia and Ukraine on the housing market in the six largest cities in Poland and explain how these effects emerged. Since Poland’s transition to a market economy and its accession to the EU, Poland has experienced normal cycles in house prices, i.e. relatively long periods of increases in house prices followed by similarly long periods of decreases in house prices. However, the combination of the COVID-19 pandemic and the war between Russia and Ukraine created a situation that can be described as a multi-cycle. The pandemic initially halted nearly all transactions on the market, but after a few quarters of fiscal and monetary intervention aimed at saving the economy we observed a housing boom. Just a few quarters later, the Russian aggression in Ukraine caused significant inflation, which required a sharp increase in interest rates, and once again demand slowed down. This was followed just a few quarters later by a resurgence in house purchases in order to escape inflation, with many people using cash for these purchases. This situation has shaken the housing market, while the war has also generated a demographic shock. Construction and transportation workers began returning to Ukraine to help in its reconstruction, while women with children came to Poland from Ukraine seeking safety and creating a demand for rental housing.
Living in Large Urban Developments: A Critical Understanding of the Housing Experience
This article critically reviews international literature on the social aspects of vertical living. It identifies three research approaches – the built environment effect, the differentiated built environment effect, and the human-environment interrelation – and two focal social orientations of research – suitability and experience – as well as four spatial orientations – space, design, verticality and volume, and technology. The article emphasises the need to extend the scope of future research beyond the building to the residential complex, clusters of complexes, and the entire city in order to better understand relations between volume and experience. It also calls for a more complex investigation of the vertical dwelling experience that would include residential aspirations, new neighbourly roles, and identities.
Understanding Homeownership Rates: the Impact of Co-residence Patterns
The socio-demographic context, which includes the co-residence patterns associated with the decisions of young adults on whether to live in the parental household or enter homeownership or renting, is directly reflected in homeownership rates at the aggregate level as a consequence of these decisions. However, the way in which tenure statistics are reported also matters in this respect. This applies specifically to household-level statistics, which are most often used to characterise housing systems. It is therefore possible to ask whether countries with high homeownership rates and, simultaneously, high shares of adult children living with their parents are truly high-homeownership societies. This study identifies the countries for which the reported tenure statistics are more influenced by demographic conditions as compared to other countries. These are the Mediterranean countries and the Central and Eastern European countries (with some exceptions).
Social Movements against Housing Financialization: An Introduction to the Special Issue
Introduction to the special issue "Social Movements against Housing Financialization".
Housing Financialization and Community Wellbeing: Tenant Resistance in the Liveable City
Tenant movements are increasingly impacting urban governance and the development of housing in Canadian cities. Tenants resisting violent and ‘gentler’ forms of gentrification—through outright expulsion or being priced out of their communities—have demonstrated their unwillingness to allow financialized real estate to determine their housing futures. At the same time, tenants also have to contend with discourses of urban improvement that increasingly dominate the terrain of financialized rental housing (re)development. Community benefits agreements and other similar arrangements emphasizing neighbourhood liveability and wellbeing are increasingly deployed as devices to justify housing (re)development, but also work to facilitate gentrification. Through an examination of a struggle between tenants and a financialized real estate investment firm in Canada’s capital city Ottawa—which aspires to be North America’s most liveable mid-sized city—this article explores the implications of a Community Wellbeing Framework for a neighbourhood redevelopment project forged through tenant resistance efforts.
South Africa’s Housing Financialisation Crises and Social Resistance
The world’s most unequal country suffers from various housing crises, especially when it comes to excessive reliance upon a private sector prone to market failures, especially affordability. State housing finance strategy during the transition from apartheid to democracy relied upon augmentation of formal banking finance so as to promote home ownership. But as macro-economic conditions changed in the late 1980s, the resulting mass defaults on individual families’ home mortgage bonds led not only to foreclosures by a (white) state, but (black) working-class resistance organised by the country’s leading urban social movement, known as the ‘bond boycott.’ Even after democracy, a worsening housing backlog coincided with resurgence of household debt crises in the wake of the 2008 global financial meltdown. That generated a new housing finance strategy led by Mastercard and a local fintech firm (supported by the World Bank): collateralisation of welfare grants which in turn allowed debit orders for repayment of microfinance (typically used for minor home improvements). Again, social resistance played an important role, as the strategy caused even worse personal debt crises, and a welfare NGO’s successful fight to close Mastercard’s partner. But beyond periodic revolts of these sorts, a durable housing finance policy has remained elusive.
The Political Outcomes of Housing Movements: Participatory Governance in Mass Housing Programmes
Research conducted over the past decade examining the impact of social movements on urban politics and housing policy has significantly enhanced our understanding of how these movements resist housing financialisation through direct action, social protest, and advocacy. However, further investigation is still required to comprehend the influence of housing movements on policy design and implementation, in order to understand the paths taken and how social movements shape housing and urban policies. This paper focuses on the self-management branch of the My House, My Life – Entities (Minha Casa, Minha Vida - Entidades), a mass housing programme in Brazil. The paper has two objectives. Firstly, it identifies the strategies that nationally organised urban and housing movements employ to advocate for the inclusion of housing self-management in federal mass housing programmes. Secondly, it examines the policy implications of implementing a participatory governance model (co-management) in national housing programmes, with an emphasis on policy lessons learned. To accomplish this, policy documents, housing movement reports, and news media items were utilised to systematically trace the trajectory to success and examine the policy lessons for participatory governance. This paper makes two contributions: it enriches the literature on social movements against housing financialisation by analysing citizen participation in housing policy design and implementation and it contributes to the field of research on the consequences of social movements by examining the influence of social movements in shaping and housing policies.
Struggling with and through Knowledge Production: The Campaign ‘Expropriate Deutsche Wohnen & Co.’s’ Attempt at Housing Definancialisation in Berlin
The article looks at the role of knowledge production in conceptualising the impact of social movements, taking the campaign Deutsche Wohnen & Co. Enteignen (Expropriate Deutsche Wohnen & Co.) as an example. The campaign proposes to socialise the assets of all (financialised) landlords who own more than 3,000 apartments in Berlin. The article analyses how the campaign has developed and popularised strategic knowledge about housing financialisation and definancialisation. Empirically, the article analyses two phases of the political work. It discusses the beginnings of the campaign in the run-up to the 2021 referendum, where the campaign translated knowledge about the role of institutional financial investors in Berlin’s housing crisis into a demand for socialisation. The article also analyses the phase after the successful referendum in 2021, where the knowledge production shifted to the juridical field as the Berlin Senate set up an expert commission to discuss the constitutionality of housing socialisation.
Changing Social Movements in Lisbon? Housing Financialisation and Post-pandemic Activism
During the last decade, following years of austerity and rapid growth driven by tourism, real estate, and external investment, Lisbon has become a paradigmatic case of the financialisation/crisis nexus in the housing field. The simultaneous emergence and growth of social movements for the right to housing has been widely documented, with some accounts focusing on anti-financialisation struggles. In this article, we present the repertoires and claims of four activist groups and platforms born between 2022 and 2023 and discuss how Portuguese social movements are contending with the increasing centrality of financialisation in housing. In sum, we present three broad patterns of rescaling – intersectionality, internationalisation, and relations with political parties – in relation to the general endeavour to build a mass movement.
Fractured Mobilization: Miami’s Little Haiti Confronts Mega-Real Estate Speculation
Disenfranchised urban communities worldwide are increasingly vulnerable to land dispossession and cultural erasure as neoliberal regimes unleash intensified financial speculation within polarizing and splintering local/global class and racialized disparities. A dilemma of disenfranchised communities when confronting speculative intrusions where prospective allies have become marginalized or eliminated is whether, and to what degree, to resist such threats contentiously at the risk of zero-sum defeat versus accommodative negotiations seeking to rescue modest benefits while mitigating dislocations. The forms and intensities of community responses can be conceptualized as embedded within multiscalar state society and local politico-spatial configurations. From that perspective, I address a predominantly Black immigrant district, Miami’s Little Haiti, as it confronts mega-real estate speculation within a metropolitan political economy of corporate real estate hegemony and accelerating racialized expulsions. The contentious versus accommodative dilemma and local/supralocal political landscape fractured and neutralized the Haitian collective responses. I conclude by discussing the case’s theoretical/comparative implications.
The Role of Neighbourly Relations and Cooperation in Residents’ Willingness to Renovate Multi-Family Buildings in Croatia
The inadequate legislation on multi-family housing management in Central and Eastern European post-socialist countries calls for the exploration of additional determinants of building renovation on the level of the community of residents in a building. To this end, we present here an analytical framework called the mediated-Renovation Decision (m-RD) model for simultaneously testing the direct and indirect effects that neighbourly relations, cooperation of the co-owners’ representative with the co-owners, and acceptance of the building co-ownership concept have on co-owners’ willingness to invest in building renovation. The model is based on assessments made by 325 co-owners’ representatives from multi-family buildings in Croatia. The results show that the quality of neighbourly relations affects the co-owner’s willingness to renovate not directly, but indirectly through the level of their acceptance of the building co-ownership concept. The other indirect effect of neighbourly relations – through the level of the representative’s cooperation with co-owners – was not significant. The demonstrated analytical value of the m-RD model advocates for more complex studies of the role of neighbourly relations in collective decision-making and actions in the housing domain.
The Role of Housing Costs in Central Banks’ Inflation Targeting Regimes: The Cases of the Reserve Bank of Australia and the Bank of England
Since the 1990s it has become common for central banks to be charged with using interest rates to meet consumer price inflation (CPI) targets. This article examines the cases of the Reserve Bank of Australia (RBA) and the Bank of England (BoE) and finds that whereas the RBA’s CPI target includes a housing cost element, the BoE’s does not. Moreover, it finds that contrasting treatments of housing costs produce different results, depending on whether the index includes mortgage interest as a housing cost. Whilst central banks dislike CPIs that include an element of mortgage interest because of the apparently perverse outcome of increasing interest rates, they also lack credibility by excluding such an important element of the cost of living. Credibility demands that the 30-year consensus on inflation targeting by monetary policy be replaced by a broader set of tools – including fiscal policy – to control inflation.
Reframing Social Tectonics with the Sociology of Everyday Life: Insights from the Public Spaces of a Mixed Housing Neighbourhood
Social mix policies aim to integrate residents living in diverse forms of housing. While numerous studies have showcased the limitations of social mix in achieving this objective, explanations for this tendency remain incomplete. Accordingly, this qualitative case study adopts insights from the sociology of everyday life and interaction ritual theory to elaborate on academic understandings of (non)-interaction between disparate groups in mixed housing communities. It draws primarily from observational fieldwork and semi-structured interview data gathered in the public spaces of a transitioning mid-sized city in Ontario, Canada. The findings report how everyday encounters among and between the urban poor and wealthier residents (re)produce patterns of group solidarity and conflict. The continued application of micro-sociological perspectives to housing mix research can chronicle and perhaps mend the gaps between government housing policy objectives and the experiences of residents living within relevant legislative jurisdictions.
Testing Housing Price Drivers in Santiago de Chile: A Hedonic Price Approach
Hedonic modelling is an empirical analysis technique that is widely used to review the housing market and unpack the main determinants of price. A correct determination of housing price drivers allows a weighted prediction of the value of each dwelling for sale or rent. This paper reviews the fundamental determinants of housing prices that have been published in the literature to see which ones have a better predictive fit for the case of the housing market in the city of Santiago, Chile. From a record of 456,000 property transactions, a dataset composed of 11 explanatory variables is elaborated. Through a semi-logarithmic regression, 4 variables that contribute to explaining the formation of housing prices in Santiago, Chile, are identified. The results indicate that the socioeconomic characterisation of urban areas where housing is traded, the price of copper on the London Metal Exchange, the mortgage interest rate, the age of residential buildings are the main drivers for the main drivers of prices in Santiago. Given the crisis of access to housing in Chile, the article provides relevant information for decision-makers in housing policy.
Institutional Formation in Tumultuous Times: Reforming English Social Housing Regulation Post-Grenfell
English social housing regulation theoretically exists to promote the social purpose of the sector, yet the success of regulation against this objective has been questioned amidst concerns with the quality of service provided by landlords. Following the Grenfell Tower fire, the government initiated a reform process to reverse a policy of regulatory passivity on consumer standards. This paper conceives of regulatory reform as a case of institutional formation; a dynamic process that shapes conduct via rules, practices and narratives. It fills an empirical gap on how regulatory practice has responded to an ambiguous institutional environment where the governmental narrative was committed to improving standards, but formal legislation lagged. Quantitative text analysis demonstrates that the Regulator of Social Housing (RSH) has re-emphasised consumer standards post-Grenfell. But the process of institutional formation has been punctuated by social, political and economic crises, and the power of the regulator to enforce improved standards has been limited by legislative delays.
Landlords vs Tenants = Top vs Bottom? Class Positions in Rental Housing in Germany
Home ownership status is closely linked to social inequality in Germany, where tenants face several disadvantages in multiple dimensions. Even though Germany is one of the biggest renter and therefore landlord nations, in the context of the housing question it is the demand side that has been discussed and studied most. Less attention has been given to the supply side, particularly individual small-scale landlords. This article is one of the first attempts to shed light on the largest provider group that literally holds the keys to homes in its hands. Drawing on quantitative data, this article examines the socioeconomic profiles of landlords compared to tenants over time, finding landlords in the upper strata and witnessing long-term wealth divides in relation to tenants. Coupled with structural power imbalances during tenancies, this research seeks to stimulate research on private renting in the future from a class perspective.
The Role of Mortgage Subsidies in the Croatian Economic Growth Strategy: a Political-Economy Approach to the SSK
Since 2017, Croatian housing policy has focused on promoting homeownership through the SSK programme – a form of mortgage subsidisation that covers a proportion of housing costs. Although this policy aimed to improve affordability and increase homeownership, a recent economic evaluation has shown that the SSK has in fact contributed to rising house prices and has been ineffective at raising the homeownership rate. While econometric research has identified the impact that the SSK has had on house price volatility and affordability, the underlying factors leading to the implementation of this subsidy, as well as its broader societal impacts, remain under-researched. Through a political-economy lens, this paper analyses the context that led to the inception of the SSK, its core targeting principles, and its impact on the housing market. We ask: How does this subsidy position the Croatian housing market within the national strategy for economic growth and social policy provision? We argue that this policy’s impact on housing markets is twofold. First, the SSK reinforces a shift towards financialised growth through increased asset prices. Second, this subsidy shifts the focus of social policy towards mortgage markets, thereby furthering the privatisation of the welfare state and favouring middle-income groups. This paper’s contribution resides in critically discussing the SSK beyond its stated goals and contextualising it within the broader model of economic growth dependent on private finance. Through interviews with relevant stakeholders, descriptive data indicators, and a review of policy documents, this paper characterises the Croatian growth strategy as a form of small-scale financialisation that relies on aligning social policy with mortgage markets. Finally, we position the SSK within a wider array of finance-led housing policies and suggest the formulation of a comprehensive housing strategy tailored to the broader segments of Croatian society.
Traces of Obduracy: Imaginaries of ‘Social Inertia’ in the Process of Introducing Collaborative Housing in the Czech Republic
This paper explores the sociotechnical change necessary for the introduction of collaborative housing projects into the Czech super-homeownership housing regime. To better understand the obduracy of the current housing system, we examine the major barriers and threats to the implementation of such projects through a series of workshops with non-experts in selected cities. Our findings suggest that the housing system’s obduracy is related to social imaginaries that we conceptualise as the ‘imaginary of social inertia’. This form of imaginary, along with other factors such as a lack of supporting legal and financial infrastructures, creates a complex network of obstacles that reduce the likelihood of such housing projects gaining ground. In conclusion, our research emphasises the role of imaginaries in studying obduracy and thus provides valuable insights into the processes of urban sociotechnical change.
Housing Market in Central European City during the COVID-19 Pandemic
Many aspects of the global economy changed during the Covid-19 pandemic, including the real estate market. This study examines the primary residential property market in Opole during the Covid-19 pandemic. It uses property transaction data from 2018 to 2021 to conduct statistical analyses and independent group tests and also takes into account the real-estate price trend from 2014 to 2020. The study finds that both property prices and preferences relating to the structure and location of housing changed during the pandemic. In the case of Opole, the number of transactions involving residential units in the primary market increased in 2020 compared to previous years. After adjusting the unit price value of residential properties for the trend in the pre-pandemic period, the study finds that there was also an increase in property transaction prices. The study confirms three important facts relating to phenomena that are occurring globally in cities today. First, local communities are more diverse in terms of the economic heterogeneity of real estate buyers. Second, unlike big urban areas, small cities may be more resistant to the process of citizens migrating to suburban areas, thereby limiting the negative phenomenon of urban sprawl. Third, the housing real estate market in small cities is considered a reliable form of investment of assets, as real estate prices increased during the Covid-19 pandemic.
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.
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.
‘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.
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.
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.
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.
Housing Finance in the Aftermath of the Foreign-Currency Mortgage Crisis in Eastern Europe: Editorial
This special issue expands on the existing research on foreign-currency lending and the forex loan crisis in Eastern Europe by investigating other forms of housing-related finance and post-crisis developments. Bringing together hitherto disparate strands of research, our issue traces the linkages between macroeconomic developments, state measures, class dynamics, and social movements in the aftermath of the forex loan crises in Latvia, Romania, Croatia, Bosnia and Herzegovina, and Hungary as part of their long-term trajectories of housing finance. We find that despite different political-institutional articulations, these trajectories all feature a new expansion of lending based on a bifurcation of the credit market into more secure, often subsidised mortgage lending aimed at better-off debtors and more risky non-mortgage loans used for housing purposes by more precarious households.
Debt Relief or Exit: The Long-Term Effects of Forex Loans on Latvian Households
The stubborn decision of the Latvian government to join the eurozone at any cost put a great burden on Latvian households after the crisis of 2008. Nevertheless, no popular protest movement emerged to change the course of this decision. This study discusses why Latvians undertook individual strategies to cope with the forex loan crisis. Particularly, I look at the choice between formal debt relief procedures and emigration as alternative individual strategies for defaulted debtors. These programmes have not reversed the negative migration trends or significantly decreased the number of Latvian households in arrears. Debt discharge is mainly attainable for wealthy individuals who are able to mobilise their financial and kinship resources. Worse-off debtors cannot attain debt discharge or are stigmatised during the process. Alternatively, emigration has offered a way to cope with overindebtedness and keep up with mortgages and consumer loan payments for a much larger segment of the debtor population.
Whither Peripheral Financialisation? Housing Finance in Croatia since the Global Financial Crisis
This article analyses recent developments in Croatian housing finance to update the established account of housing finance and peripheral financialisation in Eastern Europe that is based on the boom-bust cycle of the 2000s and early-to-mid 2010s. During the bust stage of that cycle, changes in regulation and in the behaviour of debtors and creditors resulted in deleveraging and a shift away from the risky and exploitative lending practices characteristic of peripheral housing finance. However, new increases in household debt and housing prices since 2016–17, coupled with the COVID-19 pandemic, seem to have reversed these trends. While a boom-bust cycle of similar scope and modality to the first one is unlikely to be repeated, peripheral forms of housing finance have persisted to some degree.
Different Debtors, Different Struggles: Foreign-Currency Housing Loans and Class Tensions in Romania
Management of foreign-currency household debt in Romania in the aftermath of the Global Financial Crisis in 2008 had the effect of deepening pre-2008 class disparities and treated debtor categories differently according to their income. In this article we contribute to the debate on subaltern financialisation by showing how post-crisis credit and housing policies contributed to the fact that today different debtor groups (i.e. by type of credit but also by time of lending) find themselves at opposing ends of the political spectrum based on different class alliances, with those who benefited from the crisis-management polices positioning themselves against those who were the ‘losers’ under these same policies.
Forex Mortgages and Housing Access in the Reconfiguration of Hungarian Politics after 2008
After a boom in foreign-currency denominated (forex) mortgage loans in the 2000s and the resulting debt crisis in 2008-2009, Hungary’s debt management came to be defined by a highly politicised combination of several phenomena: the existence of a large social base at risk of defaulting on their mortgages; the integration of debtors’ struggles into a shift from the post-socialist dominance of neoliberalism to a national conservative political hegemony during the crisis years; and the political foregrounding of forex debt management in the post-2010 Orbán governments’ construction of a new financial model as part of a post-neoliberal authoritarian capitalist regime. The article traces how two main aspects of the forex mortgage crisis, housing debt under dependent financialisation and the problem of limited housing access, became integrated into Hungary’s electoral politics and macroeconomic transformation in the last decade.