AGE,TIME, VINTAGE,AND PRICE INDEXES: MEASURING THE DEPRECIATION PATTERN OF HOUSES

Age, time, and vintage are key determinants of house prices, yet they cannot be included together linearly or as dichotomous variables in hedonic regressions as construction time + age of house = sale time. We introduce a method where the estimates of the age, time, and vintage effects on prices are obtained in a flexible manner, without requiring us to specify a pre‐determined functional form for any of these variables. Applying our method to Dutch data, we find that the estimated depreciation pattern over the life of houses does not follow the functional forms typically specified for the age of houses in hedonic regressions. (JEL C43, E01, E31, R31)     

House Price Shocks and Individual Divorce Risk in the United States

Households in the United States hold a significant portion of their total wealth in owner-occupied housing. Thus, changes in housing prices may have an important impact on the marital surplus the household enjoys. What happens to marriages of homeowners when there is a shock to housing prices? This question was addressed using household data from the panel study of income dynamics (PSID) and a quarterly MSA level house price index from the Federal Housing Finance Agency, controlling for local labor market conditions. House price shocks were calculated as the cumulative sum of residuals of a second order autoregressive model from the previous four years. Results showed that positive house price shocks stabilized marriage for all couples. A one standard deviation increase in the house price shock decreased the risk of divorce in the following year by about 13–18%. The results were driven by the younger cohort of households in the PSID, those with lower educational attainment, and those with relatively low family income. The findings are discussed in the context of theories on changes in marital surplus, and changes in the transaction costs surrounding divorce.     

IS LAND LEASING A SOLUTION TO UNAFFORDABLE HOUSING?

The increase in U.S. mortgage rates from nine per cent in 1976 to fifteen per cent in 1982 raised monthly mortgage payments by about sixty per cent, even before rising house prices in the United States over this period are taken into account. Not surprisingly, attention has been focused on ways and means of counteracting spiralling housing costs. One proposed solution is land leasing. Under such an arrangement, the homebuyer purchases the house but leases the land. (There may be an option to buy the land at some time in the future.) Land leasing reduces the overall purchase price, and hence lowers the minimum down-payment and the initial monthly mortgage payment. In Hawaii, land leasing has been a readily available alternative to land owning throughout the postwar period. The analysis of residential housing prices in Hawaii provides some quantitative estimates of the relative prices of leasehold versus fee simple properties. The average price differential is surprisingly small. One explanation of these small price differentials, for which a model is developed and tested here, is that borrowing-constrained households use high discount rates to calculate the present value of the future land price that they will, in effect, have to pay at the expiration of the lease. These discount rates are estimated in a nonlinear hedonic property price equation. The results are then employed to answer the question: Under what conditions would a leaseholder buy the land outright before the expiration of the lease?     

SUPERSTITION IN THE HOUSING MARKET

We provide the first solid evidence that Chinese superstitious beliefs can have significant effects on house prices in a North American market with a large immigrant population. Using real estate data on close to 117,000 house sales, we find that houses with address number ending in “4” are sold at a 2.2% discount and those ending in “8” are sold at a 2.5% premium in comparison to houses with other addresses. These price effects are found either in neighborhoods with a higher than average percentage of Chinese residents, consistent with cultural preferences, or in repeated transactions, consistent with speculative behavior. (JEL D03, R2, Z1)     

Investigating the Relationship Between Real Estate Agents,Segregation, and House Prices: Steering and Upselling in New York State

This article leverages a unique data set, recently developed regression methods, and qualitative interviews to investigate the multiple ways real estate agents produce housing inequality. We find that the clustering of agents in and around certain neighborhoods correlates positively with house prices. Our results also show a significant relationship between agent concentration and racial segregation. Our qualitative data reveal how agents engage in steering and upselling. The findings enhance our understanding of mechanisms in the housing market, and provide more empirical clarity on the role real estate agents play in asset and place inequality.     

The rural population turnaround: a case-study of North Devon

The change from depopulation to population increase in the more remote rural areas of England is analyzed using data from a survey of 300 households in North Devon. The heterogeneous nature of the migrants and their reasons for migration are stressed. "The reasons for leaving the former area of residence tended to relate to lifestyle, personal or environmental factors whereas the reasons for choosing North Devon were more often about jobs and house prices. This complexity and diversity clearly makes difficult the quest for a single theory of the repopulation process."     

不断完善住房制度,努力构建有中国特色的住房保障体系

我国住房保障体系主要解决老百姓＂住有所居＂的问题,关键要在不同时间段使老百姓的住房条件适应社会发展的要求。要达到这个目标,需要不断完善住房制度改革。总体上,低收入者要有社会保障,中、高收入者要走商品化道路,中等偏下这一块要有政府支持,如发展公共租赁房,在房价上涨较快的地区增加限价商品房供应,通过三个不同的层次来达到老百姓＂住有所居＂的目标,构建有中国特色的住房保障体系。     

Altruism from the house: the impact of home equity on charitable giving

This paper exploits the dramatic increase in house prices in early 2000 and the panel nature of the data to investigate the effect of home equity on charitable giving. Using the Panel Study of Income Dynamics from 2001 to 2007, we find that a 10% increase in home equity increases a household??s contributions to charity by almost 1%. This is in contrast to the effect of non-housing wealth, which we estimate to be one tenth the magnitude. Our results are consistent with the consumption literature that reports a distinct effect of housing wealth that is significantly larger than that of financial wealth.     

我国房地产内在发展路径分析

我国经济发展是房地产市场中长期稳中向好的支撑.我国的城镇化发展战略会迎来新一轮有效的住房需求.促进房地产市场的稳定发展,必须把握房地产市场的发展规律,增强政策制定的合理性和科学性,引导房地产开发商和消费者的理性行为.     

HEDONIC IMPUTATION AND THE PRICE INDEX PROBLEM: AN APPLICATION TO HOUSING

In this study, we show how use of the hedonic imputation method complicates the price index problem. In addition to the usual choice between formulas such as Fisher and Törnqvist, the fact that index compilers have some discretion over which prices are imputed implies that it is necessary to choose as well between different varieties of each formula. The functional form of the hedonic model must also be taken into account. We illustrate the importance of these issues in a housing context using house price data for three regions in Sydney over a 3‐yr period. (JEL C43, E31, O47, R31)     

THE LONDON BOMBINGS AND RACIAL PREJUDICE: EVIDENCE FROM THE HOUSING AND LABOR MARKET

This paper investigates the impact of the London bombings on attitudes toward ethnic minorities, examining outcomes in housing and labor markets across London boroughs. We use a difference‐in‐differences approach, specifying “treated” boroughs as those with the highest concentration of Asian residents. Our results indicate that house prices in treated boroughs fell by approximately 2% in the 2 years after the bombings relative to other boroughs, with sales declining by almost 6%. Furthermore, we present evidence of a rise in the unemployment rate in treated compared to control boroughs, as well as a rise in racial segregation. (JEL J15, J71, R21)     

Housing strategies in an uncertain market

The slump in house prices in the early 1990s created a degree of uncertainty in the housing market which contrasts markedly with the optimism of the 1980s. In particular, the market downturn made it sharply apparent that there could be losers as well as winners in the unstable housing market. This study looks at a sample of owner occupiers drawn from Glasgow and Bristol in 1995. While still endorsing home ownership as the major housing option and as potentially enabling in housing and neighbourhood terms, a note of caution is recognisable. Aspirations to climb the housing ‘ladder’ are tempered by fear of overextending financially and by the broader uncertainties that people perceive to be endemic in the labour market and the housing market. Strategies reflect both diverse personal histories and the adoption of defensive or risk reduction options. For many respondents maintaining current housing standards is more important than market advancement.     

Socio-economic variables as indicators of pond conservation value in an urban landscape

Despite their designation as nationally important habitats in the UK, ponds are among the least well studied of urban habitats. Ponds, as well as existing in a physical landscape, are part of human socio-economic landscapes, especially those in towns and cities. Socio-economic, ecological and land cover data were collected from thirty seven ponds in the urban area of Halton, northwest England over a 3?year period. Significant variation was observed in the CCI Scores for ponds in different Output Area Classifications. Within postcode districts there was a significantly negative correlation between increasing house prices and decreasing BMWP scores. This research offers insights into the impact of urban development on pond ecology, and suggests the potential impacts of future developments and how these may be ameliorated. The research contributes towards the understanding of freshwater systems in the urban context and the relationship between the human and natural elements of urban green and blue spaces.     

Divorce and the cost of housing: evidence from Iran

Divorce trend in Iran has become a serious social concern that is suspected of being influenced by rising housing costs in an oil-based economy. Iran has the highest growth rate of divorce among Islamic countries in the Middle East and North Africa region. Using data from 30 provinces of Iran from 2002 to 2010, this paper examines the relationship between housing costs (house prices and rents) and divorce rate, controlling for other macroeconomic variables such as unemployment, inflation, and education in addition to regional, cultural, traditional, and conventional attitudes toward divorce. By applying panel fixed-effects and dynamic generalized methods of moments methods, our results suggest that increases in housing costs erode marital stability in Iran. Our main results are also supported when we focus on the shocks in housing costs, using the Vector autoregressive based impulse response and variance decomposition analyses of divorce rates at the national level from 1982 to 2010.     

The private sector and urban housing production process in Nigeria: A study of small-scale landlords in Abuja

The private production system continues to supply the majority of housing to the population of Third World cities. In Nigeria, statistics show that the bulk of urban housing units is supplied for rent by small-scale private landlords. This paper examines the process of housing production among this category of producers using, as a case study, the peripheral settlements of Abuja, Nigeria's new capital city. A predominance of small-size sole proprietorships is established among the small-scale house building firms, mostly for reasons of maintaining operational flexibility and cost saving. It is also found that the greatest attraction of investing in rental housing by small entrepreneurs is the hedge it provides against inflation and the stability and permanence it introduces into the capital base of economic pursuits. A strong influence of traditional chiefs in land supply is revealed, together with the emergence of a commercialised land market, resulting in speculation and contributing to rising land prices. It is shown that building materials are the most problematic of the key building components to the housing production process. It is argued that small building firms would make more profit if they had access to formal sector working capital and that the practice of using casual workers in project execution has the advantage of enabling firms to survive periods of job drought, but does not encourage growth of the firms, apprenticeship training and skills development in the house construction industry. It is concluded that what is needed to enhance the operation of this category of producers is for government to accept an enabling role that will seek to minimise the financial burden and risks to which they are currently exposed.     

Social Work and Power

Abstract

This article argues that youth housing workers in Victoria, Australia, are vulnerable to housing affordability problems and one reason for this is inadequate pay. A survey of 10 youth housing workers explained the ways in which they had struggled to afford housing. Some paid more than 30% of their wage on housing costs. Others relied on income other than their youth housing worker salary to afford rental accommodation, which included pay from a second job, drawing on credit, and financial support from partners, family, and friends. Most reported that they did not have sufficient income to save to purchase a home. These findings resonate with secondary source aggregate data, which identified that for almost a decade the pay of youth homelessness service workers in Victoria has not kept pace with average wage growth and rises in rents and house prices. Improving youth housing workers pay is recommended as a way to address their housing affordability concerns.     

The economic diversity of rural England: stylised fallacies and uncertain evidence

Debate about rural policy is often based on persistent presumptions about conditions in ‘rural England’, generally associated with economic decline, low incomes, and a lack of services. Such generalisations are rarely justified for rural areas as a whole and we term them as ‘stylised fallacies’. The impression of their relevance is perpetuated by the selective comparison of statistics for ‘urban’ and ‘rural’ areas. The paper reviews the evidence on a number of such fallacies: the economic impact of agriculture, depopulation, low incomes, rural labour markets, house prices and service provision. In each case, the position is far more complex than is commonly recognised in policy debate. The rural character of an area does not in itself offer a rationale for policy intervention. Rather, discussion could be supported through the characterisation of different types of local area. This might be approached either through statistical analysis or through qualitative analysis of emerging social and economic patterns of differentiation. In practice, each approach needs to be supported through the other.     

Migration to less-popular rural areas in the Netherlands: Exploring the motivations

Migration into rural areas is often explained in terms of the rural idyll, the attraction of the countryside with its less hurried way of life in a quiet, spacious and green environment. However, this migration phenomenon has mostly been researched in attractive, amenity-rich, popular rural areas. This paper investigates the characteristics and motivations of migrants to less-popular rural areas using survey data (N = 664) for four municipalities in the North of the Netherlands. Our study shows a young group of in-migrants with relatively low incomes, but also a large proportion of working people and a considerable number of highly educated movers. Separating the motivations for choosing to live in a rural area in general from the motivations for choosing this specific rural area reveals that while the pull of the rural idyll is an important motivation for moving to a rural area in general, the reasons for choosing the specific rural area are a mixture of housing characteristics, the physical qualities of the environment, personal reasons and the low house prices in the area. Combining the motivations with the characteristics of the movers reveals the diversity within the movers group. Our analysis shows a group of movers motivated to live close to family and friends, consisting of return migrants, singles, the youngest and oldest age groups and also the lowest income group. The physical qualities of the environment attract a group of highly educated movers, people with high incomes and people aged between 35 and 64. The motivation of housing characteristics, referring in most cases to the availability of a specific house, is mentioned by a wide range of movers, but in particular by people moving from urban areas.     

A Global-Middle-Class House?1 Cultural Capital,Taste, and Kitsch

Abstract

In this article, I show how the category of the migrant house, as has been recently discussed in much scholarship, can be expanded to include another subcategory—the global-middle-class house. Recently, the migrant house has generated much research in migration studies and in disciplines of the built environment. Consequently, it has been examined through various perspectives, including home and belonging, materiality in the home, and the transnational home. It has not been examined, however, through the concepts of cultural capital, taste and kitsch, as developed by Bourdieu and others. This article applies these concepts in the exploration of the migrant house through a case study of one house and its transformation from old to new in suburban Melbourne. The article shows how the concepts of cultural capital, taste and kitsch can be utilized to expand the category of the migrant house to include the global-middle-class house. Following a theoretical discussion, the article analyses the old family house, the decision to demolish, the construction process and the redevelopment of a new house, together with an analysis of material objects in the new house and around it. The article argues that this is a specific kind of a migrant house, a global-middle-class house, because it combines popular global taste with objects taken from the ancestral past of its migrant residents.     

At what price should Bordeaux wines be released?

This paper models optimal release prices of an experience good recurrently issued on markets. Using a sample of Bordeaux wines, we find that using a minimal number of intrinsic and extrinsic attributes is sufficient to explain a large proportion of release prices. We further observe a significant relationship between primary market prices and secondary market prices and general economic conditions. Release prices can deviate from secondary market prices in the short run but remain aligned over the long run. Finally, an out-of-sample analysis indicates that short-run mispricing directly affects the purchase behavior of customers.