Housing tenure and housing demand in Colombia

"Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the...

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Autores Principales: Arbeláez, María A., Steiner, Roberto, Becerra, Alejandro, Wills, Daniel
Publicado: 2015
Materias:
Acceso en línea:http://hdl.handle.net/11445/241
id ir-11445-241
recordtype dspace
institution Fedesarrollo
collection DSpace
topic Mercado Inmobiliario
Precios de la Vivienda
Crédito Hipotecario
Tasa de Interés
spellingShingle Mercado Inmobiliario
Precios de la Vivienda
Crédito Hipotecario
Tasa de Interés
Arbeláez, María A.
Steiner, Roberto
Becerra, Alejandro
Wills, Daniel
Housing tenure and housing demand in Colombia
description "Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the household head, size of the household and whether the household resides in an urban area. Households with higher income are more likely to purchase than to rent and the choice of formal housing is positively associated to wealth. Interestingly, households eligible for social housing subsidies are more likely to purchase than to rent and those working in the informal sector are more likely to purchase informal dwellings. Demand is quite responsive to price changes as well as to changes in the price of rental (its closest substitute). The elasticity to permanent income for both buying and renting is similar to that observed in other developing countries, and is higher for those working in the informal sector. This suggests that subsidies and other interventions aimed at fostering demand should not exclude those holding informal sector jobs. Demand is highly responsive to positive shocks to income, a fact probably associated with credit constraints being binding. Subsidies have a large positive impact on demand. Likewise, access to mortgage credit is an important determinant of demand. Finally, savings have a positive effect on demand in 2008, not in 2003. A plausible explanation is that a policy intervention that began in 2000 i.e, a tax exemption for households that established savings accounts destined for housing purchases only had an effect in the upper part of the business cycle. In both cases (i.e. subsidies and credit) the positive effect on demand is entirely explained by demand for social housing."
author Arbeláez, María A.
Steiner, Roberto
Becerra, Alejandro
Wills, Daniel
author_facet Arbeláez, María A.
Steiner, Roberto
Becerra, Alejandro
Wills, Daniel
author_sort Arbeláez, María A.
title Housing tenure and housing demand in Colombia
title_short Housing tenure and housing demand in Colombia
title_full Housing tenure and housing demand in Colombia
title_fullStr Housing tenure and housing demand in Colombia
title_full_unstemmed Housing tenure and housing demand in Colombia
title_sort housing tenure and housing demand in colombia
publishDate 2015
url http://hdl.handle.net/11445/241
_version_ 1626724328085127168
spelling ir-11445-2412017-06-17T16:57:35Z Housing tenure and housing demand in Colombia Arbeláez, María A. Steiner, Roberto Becerra, Alejandro Wills, Daniel Mercado Inmobiliario Precios de la Vivienda Crédito Hipotecario Tasa de Interés "Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the household head, size of the household and whether the household resides in an urban area. Households with higher income are more likely to purchase than to rent and the choice of formal housing is positively associated to wealth. Interestingly, households eligible for social housing subsidies are more likely to purchase than to rent and those working in the informal sector are more likely to purchase informal dwellings. Demand is quite responsive to price changes as well as to changes in the price of rental (its closest substitute). The elasticity to permanent income for both buying and renting is similar to that observed in other developing countries, and is higher for those working in the informal sector. This suggests that subsidies and other interventions aimed at fostering demand should not exclude those holding informal sector jobs. Demand is highly responsive to positive shocks to income, a fact probably associated with credit constraints being binding. Subsidies have a large positive impact on demand. Likewise, access to mortgage credit is an important determinant of demand. Finally, savings have a positive effect on demand in 2008, not in 2003. A plausible explanation is that a policy intervention that began in 2000 i.e, a tax exemption for households that established savings accounts destined for housing purchases only had an effect in the upper part of the business cycle. In both cases (i.e. subsidies and credit) the positive effect on demand is entirely explained by demand for social housing." "Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the household head, size of the household and whether the household resides in an urban area. Households with higher income are more likely to purchase than to rent and the choice of formal housing is positively associated to wealth. Interestingly, households eligible for social housing subsidies are more likely to purchase than to rent and those working in the informal sector are more likely to purchase informal dwellings. Demand is quite responsive to price changes as well as to changes in the price of rental (its closest substitute). The elasticity to permanent income for both buying and renting is similar to that observed in other developing countries, and is higher for those working in the informal sector. This suggests that subsidies and other interventions aimed at fostering demand should not exclude those holding informal sector jobs. Demand is highly responsive to positive shocks to income, a fact probably associated with credit constraints being binding. Subsidies have a large positive impact on demand. Likewise, access to mortgage credit is an important determinant of demand. Finally, savings have a positive effect on demand in 2008, not in 2003. A plausible explanation is that a policy intervention that began in 2000 i.e, a tax exemption for households that established savings accounts destined for housing purchases only had an effect in the upper part of the business cycle. In both cases (i.e. subsidies and credit) the positive effect on demand is entirely explained by demand for social housing." R21 R31 G21 2015-12-19T00:02:44Z 2016-01-21T02:25:54Z 2017-04-17T20:26:58Z 2017-06-17T16:57:35Z 2015-12-19T00:02:44Z 2016-01-21T02:25:54Z 2017-04-17T20:26:58Z 2017-06-17T16:57:35Z 2011-01 http://hdl.handle.net/11445/241 Documentos de Trabajo (Working Papers). No. 54. Enero, 2011 application/pdf
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