Editorial

Abstract

Welcome to the second issue in the nineteenth volume of the International Journal of Housing Markets and Analysis. This issue contains 12 research papers which produce a significant and unique contribution to knowledge regarding global housing markets. This is underpinned by a diverse range of developed and developing markets to ensure this journal is truly international across all countries, as well as publishing outcomes which are relevant and useful to the housing research community and related stakeholders. Every paper has successfully passed through a double blind refereed process and credit is given to the academics and industry experts who contributed to this process.The first paper from the USA investigates the effect of the COVID-19 pandemic market shock on house prices, time on market and also the probability of sale functions using local Multiple Listing Service data. The methodology used a two-stage residual inclusion model to simultaneously address endogeneity and non-linearity in modelling sales price and time-on-market. It also used a Heckman two-stage procedure to account for sample selection bias in estimating the probability of sale. The findings showed that pandemic shock directly impacted average home prices, time on market and probability of sale. It also caused the coefficients of some of the factors which influence these metrics to change while others were stable to the exogenous shock of the pandemic. In addition, the coefficients for hedonic pricing, time on market and also the probability of sale models did not shift instantaneously, but instead the impact evolved over several months at the beginning of the pandemic until stabilisation.The second paper from Indonesia investigated several factors from religiosity aspects (perceived religiosity on property, perceived Islamic debt principle, perceived maqasid on homeownership, shariah-compliant products) and financial aspects (mortgage repayment policy, well-versed bankers, perceived financial benefit, perceived risk) which influence the willingness of low-income people to choose Sharia Subsidised Mortgages in Indonesia. Data was obtained from 235 respondents and analysed via the methodology using the partial least square-structural equation modelling (PLS-SEM) approach. The results showed that perceived religiosity on property, shariah-compliant products, mortgage repayment policy and perceived financial benefits significantly influence the willingness to choose Sharia subsidised mortgages. The optimal approach to increase the willingness of low-income people to choose Sharia subsidised mortgages is by promoting widely with elements of community religiosity.The third paper from Iran examines the impact of cultural dependency stemming from exchange rate fluctuations (specifically the US dollar) on herding behaviour in the housing market. The dramatic price increases in this sector (for instance, a more than 42-fold increase from 2011 to 2021) have significantly impacted the welfare of Iranian families. For example the proportion of housing and rent expenses in household budgets now constitutes approximately 70%. With reference to the methodology, after confirming the presence of spatial effects then the Dynamic Spatial Durbin Panel Model with Generalized Common Effects (SDM-DPD(GCE)) was selected from various spatial models for these provinces. The results from the model estimation indicated that fluctuations in the free market exchange rate of the dollar significantly and positively impacted the housing market in both target and neighbouring regions, fostering herding behaviour characterised by cultural dependency within the specified timeframe. In addition, the study found that variables such as the inflation rate, population density index and the logarithm of stock market trading volume have significant and positive impacts on the housing market.The fourth paper from Saudi Arabia investigates the association between various demographic factors and housing affordability in Saudi Arabia. It provides important insights into increasing demand for housing which can assist the Saudi government to design and implement a housing delivery strategy. It can also support KSA’s ambitious Vision 2030 which targets increased homeownership. In the methodology a survey of households was undertaken and responses were analysed using chi-square analysis and logistic regression. The findings showed that gender and job rank were related only with housing value however not to housing type, type of tenancy or the number of bedrooms. Note that age, level of income, nationality, household size and job sector had significant associations with housing type, type of tenancy, number of bedrooms and housing value. However, the study did not find a significant relationship between the education level of the head of the household and any housing characteristics.The fifth paper from Malaysia explores the barriers preventing tenants from exiting public rental housing in Kuala Lumpur. It identifies factors influencing tenant decisions to stay and examines how sociodemographic characteristics affect these reasons. This study using a quantitative methodology with responses gathered from 328 tenants in the Program Perumahan Rakyat (PPR) through stratified random sampling. The data was analysed using descriptive analysis and PLS-SEM estimation. The findings found that housing availability and also the exit programmes by DBKL were the most significant factors influencing exit barriers. Tenant income also impacted their decision to remain since available housing often does not match their income levels. Therefore, policymakers and relevant agencies should collaborate to help tenants increase their income, facilitating their transition out of public rental housingThe sixth paper from Iran investigates the complex relationship between housing prices and transaction volumes in Tehran. The focus is placed on spatial dynamics and contextual factors that influence these variables. The methodology uses the autoregressive Moran index, hot spot analysis and also generalized linear mixed models to analyse spatial heterogeneities and clustering patterns. The findings identify significant clustering in northern and western districts of Tehran where high transaction volumes and housing prices are influenced by factors such as employment rates, rental housing availability and also the physical characteristics of residential units. The research highlights the impact of macroeconomic conditions, demographic shifts and also government policies on market dynamics. The results emphasise the need for localised housing policies that consider spatial variability and underlying socio-economic and physical factors.The seventh paper from Saudia Arabia investigates macroeconomic factors influencing housing demand using quarterly data for the period 2010 Q1–2024 Q2. For the methodology the autoregressive distributed lag (ARDL) Bounds test and a vector error correction model examined the relationship between the macroeconomic factors. The results reveal that the F-statistic value of 4.2043 is higher than the upper bound of the critical values at 5% level of significant indicating long-run association among the series. While there is a negative influence of interest and inflation rates on housing demand, income per capita and population have positive influences on housing demand. A similar result is found for the short run analysis except income per capita which has a positive impact. Moreso, population seems to be very crucial to housing demand in both the short run and long run periods.The eighth paper analyses and compares housing tenure and housing price indexes (HPI) in Saudi Arabia with selected Organisation for Economic Cooperation Development (OECD) countries. The study uses quantitative data obtained from the Saudi 2022 Statistical Census and the OECD. Analysis of the data involves descriptive and inferential statistics. The findings confirm an analysis of housing tenure distribution and HPI allow important insights into the diverse global housing landscape. Greece leads with a substantial homeownership rate of 71.50%, followed closely by the UK at 67.66% and the USA at 65.46%, indicating strong cultural inclinations towards property ownership. In contrast Germany, Switzerland and Saudi Arabia exhibit lower rates of homeownership at 40.74%, 37.54% and 30.04%, respectively, highlighting a preference for rental housing or distinct financial considerations. In terms of real house price index, Saudi Arabia and Greece display disparate trends with Saudi Arabia experiencing a gradual increase from 80.4 in 2019 to 82.08 in 2022, while Greece saw a decline from 150.9 in 2005 to 105.9 in 2019 followed by a slight recovery to 125.5 in 2022.The ninth paper from the USA investigates how, in addition to economic conditions, climate change affect the affordability of housing in the USA using state-level data covering the 50 states in the country. The methodology used a panel ARDL model to estimate short- and long-term effects and analysed economic periods before and after the global financial crisis. The approach also divided the states into two regions, the hottest and coldest, to examine differences in housing affordability. The findings identify important insights into housing affordability concerning economic conditions and climate change. It shows that better economic conditions lead to increased housing affordability, particularly in colder regions. In addition, climate change positively affects housing affordability in the short term. Overall the study confirms the important role of interest rates in the relationship between economic conditions and housing affordability.The tenth paper from India aims to provide practical insights for policymakers and urban planners to help create equitable and resilient urban areas that improve the quality of life for low-income residents. The study uses a modelling approach with metropolitan open data which incorporates 30 criteria to assess housing affordability. It takes a multidisciplinary approach and considers economic, social, and environmental factors to provide a comprehensive analysis of urban housing dynamics. The findings show that considering multiple factors, including accessibility costs, provides a more accurate measure of housing affordability. Applying the model to Pune reveals the complexity of affordability issues beyond just income and housing costs. The findings assist urban planners and policymakers, providing them with actionable data to support equitable urban development and improved housing conditions for low-income populations.The eleventh paper from Kenya is based on the understanding that many developing nations struggle with severe housing issues that lead to slums, overcrowding and related health issues. The theoretical model for analysing housing finance in this study incorporates both demand and supply aspects. This methodology divides factors influencing demand into certainty and uncertainty conditions faced by households. In terms of certainty, the model considers factors that households can predict reliably. The first variable is income where households are assumed to have stable income, allowing accurate assessment of budget constraints and mortgage decisions. The second variable is interest rates. Finally, existing housing costs, such as rent or mortgage payments, are treated as fixed and predictable, facilitating accurate budget planning. Uncertainty factors include future income, future interest rates and housing prices. The findings confirm a significant long-run relationship between house finance and several macroeconomic variables, including interest rates on credit, inflation, unemployment and GDP. The negative and significant error correction term indicates the presence of an equilibrium relationship, suggesting that the housing finance market in Kenya self-corrects swiftly in response to economic shocks. This efficiency could be attributed to increasing competition among financial institutions or a growing public awareness of housing finance options, implying a relatively well-developed market.The twelfth paper from Thailand examines the demand for product innovation specifically in single-detached house among the Generation Z. Data was collected using a Likert-scale questionnaire based on a sample group of 400 Generation Z individuals, categorized by two levels of house prices: up to 5.00m baht and above 5.00m baht. The data was then analysed using a modified analytical hierarchy process (M-AHP). The findings indicate that the sample group with house prices up to 5.00m baht prioritises innovation that provides convenience, while the groups with house prices above 5.00m baht prioritise security innovations. However, when considering all price levels, the top three desired innovative solutions are security systems to prevent trespassing, anti-theft window alarm systems and smart home solutions with security alerts, respectively.All prospective authors are welcome to contact the editor prior to submission to ensure their paper is in an acceptable format for publication. This includes ensuring the submitted paper conforms to the published author guidelines for the journal which can reduce the time the paper spends in the double blind review process. Please contact the editor directly if I can be of assistance prior to submission and/or discuss the procedure for admission into the review process. If you are interested in submitting a research paper or reviewing potential publications, please contact the editor direct at ijhma@ijhma.com.