Advertisement

Journal of Housing and the Built Environment

, Volume 28, Issue 3, pp 469–488 | Cite as

Longitudinal analysis of the formation and realisation of preferences to move into homeownership in the Netherlands

  • Carola de Groot
  • Dorien Manting
  • Clara H. Mulder
Article

Abstract

This study investigates how life course characteristics and housing market circumstances affect the formation and realisation of preferences to move into homeownership. Using a data set from the Netherlands in which data from three cross-sectional housing surveys are enriched with longitudinal register data for the period 1998–2008, we follow aspiring homeowners regarding their actual residential behaviour. We find that only 31 % of the aspiring homeowners became homeowners within 2 years, approximately 13 % moved to rental homes, and the vast majority did not move at all. Insufficient socioeconomic resources and a high house price-to-rent ratio hamper the realisation of preferences to move into homeownership. However, these hampering factors are at least as important as the extent to which individuals prefer to move into homeownership. This last finding suggests that housing tenure preferences cannot be viewed as ‘pure’ preferences.

Keywords

Homeownership Tenure preferences Actual tenure choice Housing market Longitudinal research 

References

  1. Aalbers, M. B. (2007). What types of neighbourhoods are redlined? Journal of Housing and the Built Environment, 22, 177–198.CrossRefGoogle Scholar
  2. Aarland, K., & Nordvik, V. (2009). On the path to homeownership: Money, family composition and low-income households. Housing Studies, 24, 81–101.CrossRefGoogle Scholar
  3. ABF Valuation (2010). The WOX ® quarterly 2010 Q2. Retrieved April 7, 2011, from www.calcasa.co.uk.
  4. ABF Research (2010a). Housing stock by ownership 2010, systeem woningvoorraad (Syswov).Google Scholar
  5. ABF Research (2010b). Toewijzing sociale huurwoningen in het licht van de 90 % EC richtlijn [Allocation social rental housing with the eyes on the 90 % EC rule]. Delft: ABF Research.Google Scholar
  6. Ajzen, I. (1991). The theory of planned behaviour. Organizational Behavior and Human Decision Processes, 50, 179–211.CrossRefGoogle Scholar
  7. Alba, R. D., & Logan, J. R. (1992). Assimilation and stratification in the homeownership patterns of racial and ethnic groups. International Migration Review, 26, 1314–1341.CrossRefGoogle Scholar
  8. Andrews, D., Caldera Sánchez, A. & Johansson, Å. (2011). Housing markets and structural policies in OECD countries. OECD Economics Department Working Papers, No. 836, OECD Publishing.Google Scholar
  9. Bakker, B. F. M. (2002). Statistics Netherlands’ approach to social statistics: The Social Statistical Dataset. OECD Statistics Newsletter, 11, 4–6.Google Scholar
  10. Clark, W. A. V., & Deurloo, M. C. (2006). Aging in place and housing over-consumption. Journal of Housing and the Built Environment, 21, 257–270.CrossRefGoogle Scholar
  11. Clark, W. A. V., Deurloo, M. C., & Dieleman, F. M. (1994). Tenure changes in the context of micro-level family and macro-level economic shifts. Urban Studies, 31, 137–154.CrossRefGoogle Scholar
  12. Clark, W. A. V., & Dieleman, F. M. (1996). Households and housing choice and outcomes in the housing market. New Jersey: Center for Urban Policy Research.Google Scholar
  13. Clogg, C. C., Petkova, E., & Haritou, A. (1995). Statistical methods for comparing regression coefficients between models. The American Journal of Sociology, 100, 1261–1293.CrossRefGoogle Scholar
  14. Courgeau, D., & Lelièvre, E. (1992). Interrelations between first homeownership, constitution of the family, and professional occupation in France. In J. Trussell & R. Hankinson (Eds.), Demographic applications of event history analysis (pp. 120–140). Oxford: Clarendon Press.Google Scholar
  15. Crowder, K. D. (2001). Racial stratification in the actuation of mobility expectations: Microlevel impacts of racially restrictive housing markets. Social Forces, 79, 1377–1396.CrossRefGoogle Scholar
  16. DaVanzo, J. (1981). Microeconomic approaches to studying migration decisions. In G. F. De Jong & R. W. Gardner (Eds.), Migration decision making. Multidisciplinary approaches to microlevel studies in developed and developing countries (pp. 90–129). New York: Pergamon Press.Google Scholar
  17. De Groot, C. (2011). Longitudinal analysis. In S. J. T. Jansen, H. C. C. H. Coolen, & R. W. Goetgeluk (Eds.), The measurement and analysis of housing preferences and choice (pp. 225–252). London: Springer.CrossRefGoogle Scholar
  18. Desbarats, J. (1983). Spatial choice and constraints on behaviour. Annals of the Association of American Geographers, 73, 340–357.CrossRefGoogle Scholar
  19. Di Salvo, P., & Ermisch, J. (1997). Analysis of the dynamics of housing tenure choice in Britain. Journal of Urban Economics, 42, 1–17.CrossRefGoogle Scholar
  20. Dieleman, F. M., & Everaers, P. C. J. (1994). From renting to owning: Life course and housing market circumstances. Housing Studies, 9, 11–25.CrossRefGoogle Scholar
  21. Earnhart, D. (2002). Combining revealed and stated data to examine housing decisions using discrete choice analysis. Journal of Urban Economics, 51, 143–169.CrossRefGoogle Scholar
  22. Elsinga, M. (1995). Een eigen huis voor een smalle beurs; het ideaal voor bewoners en overheid? [Low income homeownership: an ideal for government and residents?]. Dissertation: Delft University of Technology.Google Scholar
  23. Elster, J. (1983). Sour grapes. Studies in the subversion of rationality. Cambridge: Cambridge University Press.Google Scholar
  24. Ermisch, J., & Di Salvo, P. (1996). Surprises and housing tenure decisions in Great Britain. Journal of Housing Economics, 5, 247–273.CrossRefGoogle Scholar
  25. Eurostat (2012). Portrait of the regionsNetherlands. Retrieved July 23, 2012 from http://circa.europa.eu/irc/dsis/regportraits/info/data/en/nl_national.htm.
  26. Feijten, P., & Mulder, C. H. (2002). The timing of household events and housing events in the Netherlands: A longitudinal perspective. Housing Studies, 17, 773–792.CrossRefGoogle Scholar
  27. Feijten, P., & Visser, P. (2005). Binnenlandse migratie: Verhuismotieven en verhuisafstand. Bevolkingstrends, 53, 75–81.Google Scholar
  28. Fischer, P. A., & Malmberg, G. (2001). Settled people don’t move: On life course and (im-)mobility in Sweden. International Journal of Population Geography, 7, 357–371.CrossRefGoogle Scholar
  29. Fitzmaurice, G. M., Laird, N. M., & Ware, J. H. (2004). Applied longitudinal analysis. Hoboken, NJ: Wiley Interscience.Google Scholar
  30. Follain, J. R. (1982). Does inflation affect real behaviour: The case of housing. Southern Economic Journal, 48, 570–582.CrossRefGoogle Scholar
  31. Forrest, R., Murie, A., & Williams, P. (1990). Homeownership, differentiation and fragmentation. London: Unwin Hyman.Google Scholar
  32. Goetgeluk, R. W. (1997). Bomen over wonen. Woningmarktonderzoek met beslissingsbomen [Trading off housing preferences: Housing market research with decision plan nets]. Dissertation University Utrecht.Google Scholar
  33. Haffner, M. E. A. (2011). The private rented sector in the Netherlands. In K. Scanlon & B. Kochan (Eds.), Towards a sustainable private rented sector. The lessons from other countries (pp. 61–76). London: London School of Economics.Google Scholar
  34. Haffner, M. E. A., & Boumeester, H. J. F. M. (2010). The affordability of housing in the Netherlands: An increasing income gap between renting and owning? Housing Studies, 25, 799–820.CrossRefGoogle Scholar
  35. Haffner, M., & Heylen, K. (2011). User costs and housing expenses. Towards a more comprehensive approach to affordability. Housing Studies, 26, 593–614.CrossRefGoogle Scholar
  36. Helderman, A. C., Mulder, C. H., & Van Ham, M. (2004). The changing effect of home ownership on residential mobility in the Netherlands, 1980–1998. Housing Studies, 19, 601–616.CrossRefGoogle Scholar
  37. Himmelberg, C., Mayer, C., & Sinai, T. (2005). Assessing high house prices: Bubbles, fundamentals and misperceptions. Journal of Economic Principles, 19, 67–92.Google Scholar
  38. Høj, J. (2011). Improving the flexibility of the Dutch housing market to enhance labour mobility. OECD Economics Department Working Papers, no. 833, OECD Publishing.Google Scholar
  39. Ioannides, Y. M., & Kan, K. (1996). Structural estimation of residential mobility and housing tenure choice. Journal of Regional Science, 36, 335–363.CrossRefGoogle Scholar
  40. Kan, K. (2000). Dynamic modelling of housing tenure choice. Journal of Urban Economics, 48, 46–69.CrossRefGoogle Scholar
  41. Kendig, H. L. (1984). Housing careers, life cycle and residential mobility: Implications for the housing market. Urban Studies, 21, 271–283.CrossRefGoogle Scholar
  42. Krivo, L. J. (1995). Immigrant characteristics and Hispanic-Anglo housing inequality. Demography, 32, 599–615.CrossRefGoogle Scholar
  43. Kullberg, J., Vervoort, M., & Dagevos, J. (2009). Goede buren kun je niet kopen. The Hague: SCP.Google Scholar
  44. Lee, S. W., & Myers, D. (2003). Local housing-market effects on tenure choice. Journal of Housing and the Built Environment, 18, 129–157.CrossRefGoogle Scholar
  45. McLaverty, P., & Yip, N. M. (1993). The preference for owner-occupation. Environment and Planning A, 25, 1559–1572.CrossRefGoogle Scholar
  46. Megbolugbe, I. F., & Linneman, P. D. (1993). Home ownership. Urban Studies, 30, 659–682.CrossRefGoogle Scholar
  47. Mulder, C. H. (1993). Migration dynamics: A life course approach. Dissertation, University of Amsterdam.Google Scholar
  48. Mulder, C. H. (2004). Home ownership and social inequality in the Netherlands. In K. Kurz & H. P. Blossfeld (Eds.), Home ownership and social inequality in comparative perspective (pp. 114–140). Stanford: Stanford University Press.Google Scholar
  49. Mulder, C. H., & Hooimeijer, P. (1995). Moving into owner-occupation: Compositional and contextual effects on the propensity to become a homeowner. Netherlands Journal of Housing and the Built Environment, 10, 5–25.CrossRefGoogle Scholar
  50. Mulder, C. H., & Hooimeijer, P. (1999). Residential relocations in the life course. In L. van Wissen & P. Dykstra (Eds.), Population issues: An interdisciplinary focus (pp. 159–186). New York: Plenum Press.CrossRefGoogle Scholar
  51. Mulder, C. H., & Manting, D. (1994). Strategies of nest-leavers: ‘Settling down’ versus flexibility. European Sociological Review, 10, 155–172.Google Scholar
  52. Musterd, S., & Van Kempen, R. (2009). Segregation and housing of minority ethnic groups in Western European cities. Tijdschrift voor Economische en Sociale Geografie, 100, 559–566.CrossRefGoogle Scholar
  53. Myers, D., Painter, G., Yu, Z., Ho Ryu, S., & Wei, L. (2005). Regional disparities in homeownership trajectories: Impacts of affordability, new construction, and immigration. Housing Policy Debate, 16, 53–83.CrossRefGoogle Scholar
  54. Renes, G., & Jókövi, M. (2008). Doorstroming op de woningmarkt. Rotterdam/The Hague: NAi Uitgevers/PBL.Google Scholar
  55. Renes, G., Thissen, M., & Segeren, A. (2006). Betaalbaarheid van koopwoningen en het ruimtelijk beleid. Rotterdam/The Hague: NAi Uitgevers/RPB.Google Scholar
  56. Richards, T., White, M. J., & Tsui, A. O. (1987). Changing living arrangements: A hazards model of transitions among household types. Demography, 24, 77–97.CrossRefGoogle Scholar
  57. Rouwendal, J. (2007). Ageing, homeownership and mortgage choice in the Netherlands. Discussion Paper 2007—049. Amsterdam: Free University of Amsterdam/Netspar.Google Scholar
  58. Rouwendal, J. (2009). Housing wealth and household portfolios in an ageing society. De Economist, 157, 1–48.CrossRefGoogle Scholar
  59. Spader, J. S., & Quercia, R. G. (2008). Mobility and exit from homeownership: Implications for community reinvestment lending. Housing Policy Debate, 19, 675–709.CrossRefGoogle Scholar
  60. Statistics Netherlands (2010). Rent increase for dwellings. Retrieved February 9, 2011, from http://www.cbs.nl/en-GB/menu/methoden/dataverzameling/rent-movements-for-dwellings.htm.
  61. Timmermans, H., Molin, E., & Van Noortwijk, L. (1994). Housing choice processes: Stated versus revealed modelling approaches. Journal of Housing and the Built Environment, 9, 215–227.CrossRefGoogle Scholar
  62. Visser, P., Van Dam, F., & Hooimeijer, P. (2008). Residential environmental and spatial variation in house prices in the Netherlands. Tijdschrift voor Economische en Sociale Geografie, 99, 348–360.CrossRefGoogle Scholar
  63. Weesie, J. (1999). Seemingly unrelated estimation and the cluster-adjusted sandwich estimator. Stata Technical Bulletin, 52, 34–47.Google Scholar
  64. Withers, S. (1998). Linking household transitions and housing transitions: A longitudinal analysis of renters. Environment and Planning A, 30, 615–630.CrossRefGoogle Scholar
  65. Zorlu, A., & Latten, J. (2009). Ethnic sorting in the Netherlands. Urban Studies, 46, 1923–1988.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2012

Authors and Affiliations

  • Carola de Groot
    • 1
    • 2
  • Dorien Manting
    • 1
  • Clara H. Mulder
    • 3
  1. 1.PBL Netherlands Environmental Assessment AgencyThe HagueThe Netherlands
  2. 2.Department of Geography, Planning and International Development StudiesUniversity of AmsterdamAmsterdamThe Netherlands
  3. 3.University of GroningenGroningenThe Netherlands

Personalised recommendations