IDEAS home Printed from https://ideas.repec.org/a/taf/eurjhp/v4y2004i2p151-184.html
   My bibliography  Save this article

Potential Effects Of Subsidy Programmes On Housing Affordability: The Cases Of Budapest And Moscow

Author

Listed:
  • JÓzsef Hegedüs
  • Natalia Rogozhina
  • Eszter Somogyi
  • Raymond Struyk
  • Andrey Tumanov

Abstract

Mortgage markets are coming of age in a number of Eastern Europe and CIS countries. As they do, governments are looking to mortgage-loan associated subsidy schemes to respond to the popular demand for improved housing. This paper presents a detailed examination of the impact of two types of subsidy schemes–mortgage interest rate write-downs, both universal and income-targeted, and income-targeted down-payment subsidies–on the housing purchase capacity and the potential demand for mortgage loan volume in two very diverse markets: Budapest and Moscow. An accounting model that performs detailed calculations at the household level using information on household resources (income, savings and home equity), mortgage terms and conditions, and housing costs (unit prices plus an assortment of closing costs) was developed for the analysis. The down-payment subsidy is found to be better in both markets at stimulating housing purchase capacity in terms of efficiency and the distribution of subsidies in favour of moderate-income families.

Suggested Citation

  • JÓzsef Hegedüs & Natalia Rogozhina & Eszter Somogyi & Raymond Struyk & Andrey Tumanov, 2004. "Potential Effects Of Subsidy Programmes On Housing Affordability: The Cases Of Budapest And Moscow," European Journal of Housing Policy, Taylor and Francis Journals, vol. 4(2), pages 151-184.
    • Handle: RePEc:taf:eurjhp:v:4:y:2004:i:2:p:151-184
    DOI: 10.1080/1461671042000269010
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1461671042000269010
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1461671042000269010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven C. Bourassa, 1996. "Measuring the Affordability of Home-ownership," Urban Studies, Urban Studies Journal Limited, vol. 33(10), pages 1867-1877, December.
    2. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    3. Wojciech Charemza & Richard E. Quandt, 1990. "Dual Housing Markets in a Centrally Planned Economy: An Empirical Analysis," Kyklos, Wiley Blackwell, vol. 43(3), pages 411-436, January.
    4. John M. Quigley & Steven Raphael, 2004. "Is Housing Unaffordable? Why Isn't It More Affordable?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 191-214, Winter.
    5. repec:bla:kyklos:v:43:y:1990:i:3:p:411-36 is not listed on IDEAS
    6. JoAzsef Hegedüs & Iván Tosics & Stephen K. Mayo, 1996. "Transition Of The Housing Sector In The East Central European Countries," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 8(2), pages 101-136, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O. Emre Ergungor, 2010. "Homeownership for the long run: an analysis of homeowner subsidies," Working Papers (Old Series) 1021, Federal Reserve Bank of Cleveland.
    2. Dietsch, Michel & Petey, Joël, 2015. "The credit-risk implications of home ownership promotion: The effects of public subsidies and adjustable-rate loans," Journal of Housing Economics, Elsevier, vol. 28(C), pages 103-120.
    3. Polterovich, Victor & Starkov, Oleg, 2007. "Стратегия Формирования Ипотечного Рынка В России [A Strategy for Building Mortgage Market in Russia]," MPRA Paper 22044, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Neuteboom & Dirk Brounen, 2011. "Assessing the Accessibility of the Homeownership Market," Urban Studies, Urban Studies Journal Limited, vol. 48(11), pages 2231-2248, August.
    2. Andrea Kunnert, 2016. "Housing Affordability in Austria by Age and Year of Move-in. Application of the Residual Income and Tailored Ratio Approach," WIFO Working Papers 521, WIFO.
    3. Chen, Xi, 2018. "Optimal life cycle mortgage and portfolio choices in the presence of the affordability constraint," Journal of Housing Economics, Elsevier, vol. 39(C), pages 1-16.
    4. Bello Musa Zango & Sanni Mohammed Lekan & Mohammed Jibrin Katun, 2020. "Conventional Methods in Housing Market Analysis: A Review of Literature," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 227-241, January.
    5. Zan Yang & Songtao Wang, 2011. "The impact of privatization of public housing on housing affordability in Beijing: An assessment using household survey data," Local Economy, London South Bank University, vol. 26(5), pages 384-400, August.
    6. Stefan Sebastian Fahrländer, 2006. "Semiparametric Construction of Spatial Generalized Hedonic Models for Private Properties," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(IV), pages 501-528, December.
    7. Heindl, Peter & Schuessler, Rudolf, 2015. "Dynamic properties of energy affordability measures," Energy Policy, Elsevier, vol. 86(C), pages 123-132.
    8. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    9. Teresa Backhaus & Kathrin Gebers & Carsten Schröder, 2015. "Evolution and Determinants of Rent Burdens in Germany," SOEPpapers on Multidisciplinary Panel Data Research 806, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. John Landis & Vincent J. Reina, 2021. "Do Restrictive Land Use Regulations Make Housing More Expensive Everywhere?," Economic Development Quarterly, , vol. 35(4), pages 305-324, November.
    11. Darrell Jiajie Tay & Chung-I Chou & Sai-Ping Li & Shang You Tee & Siew Ann Cheong, 2016. "Bubbles Are Departures from Equilibrium Housing Markets: Evidence from Singapore and Taiwan," PLOS ONE, Public Library of Science, vol. 11(11), pages 1-13, November.
    12. Alberto Montagnoli & Jun Nagaysu, 2013. "An investigation of housing affordability in the UK regions," Working Papers 1316, University of Strathclyde Business School, Department of Economics.
    13. Livy, Mitchell R., 2018. "Intra-school district capitalization of property tax rates," Journal of Housing Economics, Elsevier, vol. 41(C), pages 227-236.
    14. Wei Wang & Yuzhe Wu, 2020. "Exploring the Coordination Mechanism for Public Housing Supply with Urban Growth Management: A Case Study of Chongqing, China," Sustainability, MDPI, vol. 12(10), pages 1-16, May.
    15. Shen, Ling, 2012. "Are house prices too high in China?," China Economic Review, Elsevier, vol. 23(4), pages 1206-1210.
    16. Brian Micallef, 2022. "Minimum Income Required to Purchase a Property: Conceptual Framework and Application to Malta," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(10), pages 1-13, October.
    17. Christian Dustmann & Bernd Fitzenberger & Markus Zimmermann, 2022. "Housing Expenditure and Income Inequality," The Economic Journal, Royal Economic Society, vol. 132(645), pages 1709-1736.
    18. Charles Ka Yui Leung & Patrick Wai Yin Cheung & Edward Chi Ho Tang, 2013. "Financial Crisis and the Co-movements of Housing Sub-markets: Do relationships change after a crisis?," International Real Estate Review, Global Social Science Institute, vol. 16(1), pages 68-118.
    19. de Koning, Koen & Filatova, Tatiana & Bin, Okmyung, 2017. "Bridging the Gap Between Revealed and Stated Preferences in Flood-prone Housing Markets," Ecological Economics, Elsevier, vol. 136(C), pages 1-13.
    20. Li, Han & Wei, Yehua Dennis & Wu, Yangyi, 2019. "Analyzing the private rental housing market in Shanghai with open data," Land Use Policy, Elsevier, vol. 85(C), pages 271-284.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjhp:v:4:y:2004:i:2:p:151-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REUJ20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.