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Affordable housing policies in a post-COVID aftermath

Author

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  • Mario Andres Fernandez
  • Shane L. Martin

Abstract

Purpose - The purpose of this paper is to assess the outcomes of a suite of affordability policies in Auckland, New Zealand, in the face of a post-COVID aftermath. Improving the access to homeownership while preserving the competitive nature of the housing market will remain a critical goal for New Zealand. Design/methodology/approach - This paper develops a spatially delineated one-to-one matching model to assess affordable housing policies such as the targeting of houses to target population groups, a shared ownership/equity scheme and the cascading (or release) of the developed affordable houses into the broader market. Findings - Results show that a targeting programme with an income threshold set between $120,000 and $150,000 maximises house sales, but a threshold set at $96,000 maximises the number of moderate-income households becoming homeowners. Several parameterisations of the model demonstrate the potential contradictions (or overlaps) between policy goals. Originality/value - The contribution of this paper is a deeper understanding of the market outcomes of affordability policies, and inputs to design strategies that balance market efficiency and fairness. Also, this paper shows that stronger integration across governments (central and local) and actors of the housing market.

Suggested Citation

  • Mario Andres Fernandez & Shane L. Martin, 2021. "Affordable housing policies in a post-COVID aftermath," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 15(1), pages 126-144, April.
    • Handle: RePEc:eme:ijhmap:ijhma-11-2020-0137
    DOI: 10.1108/IJHMA-11-2020-0137
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    References listed on IDEAS

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    1. Anupam Nanda & Gavin Parker, 2015. "Shared Ownership and Affordable Housing: A Political Solution in Search of a Planning Justification?," Planning Practice & Research, Taylor & Francis Journals, vol. 30(1), pages 101-113, February.
    2. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2016. "The Vulnerability of Minority Homeowners in the Housing Boom and Bust," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 1-27, February.
    3. Kevin J. Brown, 2013. "A Neo-Rawlsian Approach to Residential Integration," Social Inclusion, Cogitatio Press, vol. 1(1), pages 72-83.
    4. Mario A. Fernandez & Gonzalo E. Sánchez & Santiago Bucaram, 2021. "Price effects of the special housing areas in Auckland," New Zealand Economic Papers, Taylor & Francis Journals, vol. 55(1), pages 141-154, January.
    5. Rachel Friedman & Gillad Rosen, 2020. "The face of affordable housing in a neoliberal paradigm," Urban Studies, Urban Studies Journal Limited, vol. 57(5), pages 959-975, April.
    6. Gabriel, Stuart & Painter, Gary, 2020. "Why affordability matters," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    7. Mario A. Fernandez, 2020. "A matching simulation to assess additional housing capacity in Auckland," New Zealand Economic Papers, Taylor & Francis Journals, vol. 54(1), pages 67-88, January.
    8. Gavin A. Wood & Rachel Ong, 2017. "The Australian Housing System: A Quiet Revolution?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(2), pages 197-204, June.
    9. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    10. Coles, Melvyn G & Smith, Eric, 1998. "Marketplaces and Matching," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 239-254, February.
    11. Ben-Shahar, Danny & Gabriel, Stuart & Golan, Roni, 2020. "Can't get there from here: Affordability distance to a superstar city," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    12. Bernard Fingleton & Franz Fuerst & Nikodem Szumilo, 2019. "Housing affordability: Is new local supply the key?," Environment and Planning A, , vol. 51(1), pages 25-50, February.
    13. Andrew Caplin & James H. Carr & Frederick Pollock & Zhong Yi Tong & Kheng Mei Tan & Trivikraman Thampy, 2007. "Shared‐equity mortgages, housing affordability, and homeownership," Housing Policy Debate, Taylor & Francis Journals, vol. 18(1), pages 209-242, January.
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    15. repec:eme:ijhma0:ijhma-11-2019-0114 is not listed on IDEAS
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    More about this item

    Keywords

    Homeownership; Matching model; Mixed-integer programming; Shared ownership; Fairness; O18; R2; R3;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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