Impact Of Coronavirus On Indian Real Estate And Distribution On House Prices In India
Main Article Content
Abstract
In India, advancements in the housing sector have received a lot of attention. These debates are driven by worries over supply, especially at the top end of the market. In this regard, despite housing being a normal good, basic regression estimations show that income elasticity of house price fluctuations over the post-2010 period is negative. We explore the role of income distribution in order to uncover the fundamental cause. According to our empirical research, there is a positive (negative) correlation between changes in housing prices and the proportion of households in the bottom (top) quintiles of income.A jump in demand driven by an increase in the income share of the top income quintile may not put pressure on house prices given the existing adequate supply of homes at the high end of the market. Additionally, a decrease in their home demand may result from the bottom three income quintiles' diminishing income share. In order to reduce the disparities in the housing market, strategies aimed at increasing income equality may be helpful.
Article Details
References
Abelson, P., Joyeux, R., Milunovich, G., Chung, D., 2005. Explaining house prices in Australia. Econ. Rec. 81 (s1), 96-103.
Abraham, Jesse M., Hendershott, Patrick H., 1996. Bubbles in metropolitan housing markets. J. Hous. Res. 7, 191-207.
Capozza, Dennis R., Hendershott, Partic H., Mack, Charlotte, Christopher, J. Mayer, 2002. Determinants of real house price dynamics. NBER Working Paper 9262.
Case, K.E., Schiller, R.J., 1990. The efficiency of the market for single-family homes. Am. Econ. Rev. 79 (1), 125-137.
Case, K.E., Shiller, R.J., 2003. Is there a bubble in the housing market? Brook. Pap. Econ. Act. 2003 (2), 299-362.
Ceritog˘lu, E., 2019. Homeownership, Housing Demand, and Household Wealth Distribution in India. Emerging Markets Finance and Trade, pp. 1-20.
Chen, M.C., Tsai, I.C., Chang, C.O., 2007. House prices and household income: do they move apart? Evidence from taiwan. Habitat Int. 31 (2), 243-256.
Durmaz, N., 2011. Housing prices and fundamentals: the role of a supply shifter. Econ. Bull. 31.
Esteban, M., Altuzarra, A., 2008. A model of the Spanish housing market. J. Post Keynes. Econ. 30 (3), 353-373.
Gallin, J., 2006. The long-run relationship between house prices and income: evi- dence form local housing markets. R. Estate Econ. 34 (3), 417-438.
Ganiog˘lu, A., Seven, U., 2019. “Convergence in House Prices: Cross-Regional Evidence for India” SBI Working Paper, No. 1914.
Greiber, C., Setzer, R., 2007. Money and Housing -Evidence for the Euro Area and the US. Deutsche Bundesbank Discussion Paper, Series 1. Economic Studies. No. 12/2007.
Guo, M., Wu, Q., 2013. The empirical analysis of affecting factors of shanghai housing prices. Int. J. Bus. Soc. Sci. 4 (14), 218-223.
Liu, H., Shen, Y., 2005. Housing prices and general economic Conditions: an analysis of Chinese new dwelling market. Tsinghua Sci. Technol. 10 (3), 334-343.
Meen, G., 2002. The time series behavior of house prices: a transatlantic divide? J. Hous. Econ. 11 (1), 1-23.
Nellis, J.G., Longbottom, J.A., 1981. An empirical analysis of the determination of house prices in the United Kingdom. Urban Stud. 18 (1), 9-21.
Piketty, T., 2014. Capital in the Twenty-First Century. The Belknap Press of Harvard University Press, Cambridge Massachusetts.
Pour, M.S., Khani, P.N., Zamanian, G., Barghandan, K., 2013. Specifying the effective determinants of house price volatilities in Iran. Econ. Rev.: J. Econ. Bus. 11 (2), 15-20.
Xu, L., Tang, B., 2014. On the determinants of UK house prices. Int. J. Econ. Res. 5 (2), 57-64.
Zhang, C., Jia, S., Yang, R., 2016. Housing affordability and housing vacancy in China: the role of income inequality. J. Hous. Econ. 33, 4-14.