Publication: A Preliminary Study on Re-examining Housing Demand from a Homeownership Perspective in Taiwan
Since the last decade, the peculiar phenomenon of .high housing price, high vacan homeownership rate. has occurred due to the changes of housing market and socio-economic conditions in Taiwan. On one hand, the housing supply keep increasing while on the other hand, the housing demand from middle-income families remain unsatisfied due to the ever-increasing housing price. The unbalance between supply and demand in housing markets result in the queries about how homeownership affects the housing market and how we could adjust housing policies. This study re-examined the correlation between housing demand and homeownership, and analyzed its influence on housing market from institutional and economic aspect. Findings show that housing policies in Taiwan have a fundamental stand for advocating homeownership during every developing period, causing the unbalance of housing tenure of choice. From economic perspective, it is concluded that high homeownership rate in Taiwan is affected by anticipation of high house price increment as well as the low taxation of owner-occupied housing, and form a self-reinforcing cycle along with housing price and vacancy. It is expected that further study would use a tenure choice model to estimate the change of the factors to housing demand so as to provide evidence for the theoretical argument.
Book of proceedings: Annual AESOP Congress, Definite Space – Fuzzy Responsibility, Prague, 13-16th July, 2015
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