1. bookTom 30 (2022): Zeszyt 2 (June 2022)
Informacje o czasopiśmie
License
Format
Czasopismo
eISSN
2300-5289
Pierwsze wydanie
16 May 2013
Częstotliwość wydawania
4 razy w roku
Języki
Angielski
access type Otwarty dostęp

Housing Cost Stress of Mortgagers and Tenants in Poland

Data publikacji: 18 Jun 2022
Tom & Zeszyt: Tom 30 (2022) - Zeszyt 2 (June 2022)
Zakres stron: 61 - 72
Informacje o czasopiśmie
License
Format
Czasopismo
eISSN
2300-5289
Pierwsze wydanie
16 May 2013
Częstotliwość wydawania
4 razy w roku
Języki
Angielski
Abstract

The economic problems of mortgage takers, especially in light of the global financial crisis, is a very important issue, both from the point of view of housing policy and the stability of the banking sector. The analysis of the situation of mortgagors is usually limited to determining the percentage of mortgages in default. We compared the revealed mortgage repayment problems among Poles (arrears) with the unrevealed ones (such as high housing cost burden, inability to bear unexpected expenses), which we defined as housing cost stress. Next, we compared these problems with those of tenants at market rates. We found that, although we observe only a small percentage of mortgagors who are in arrears with their housing costs in Poland (about 3%), a large proportion of borrowers (about half of them) are in a difficult financial situation. At the same time, we noticed that their situation is still better than that of market rent tenants, because only one in five renters did not experience problems with covering housing costs. Among tenants, singles were much more likely to suffer from housing cost stress.

Keywords

JEL Classification

Aoki, K., Proudman, J., & Vlieghe, G. (2004). House prices, consumption, and monetary policy: A financial accelerator approach. Journal of Financial Intermediation, 13(4), 414–435. https://doi.org/10.1016/j.jfi.2004.06.003 Search in Google Scholar

Bajari, P., Chan, P., Krueger, D., & Miller, D. (2013). A dynamic model of housing demand: Estimation and policy implications. International Economic Review, 54, 409–442. https://doi.org/10.1111/iere.12001 Search in Google Scholar

Brunnermeier, M. K. (2009). Deciphering the liquidity and credit crunch 2007–2008. The Journal of Economic Perspectives, 23(1), 77–100. https://doi.org/10.1257/jep.23.1.77 Search in Google Scholar

Central Bank of Ireland. (2010a). Banking supervision: our new approach. Central Bank & Financial Services Authority of Ireland. Search in Google Scholar

Central Bank of Ireland. (2010b). The Irish Banking Crisis, Regulatory and Financial Stability Policy 2003-2008. A Report to the Minister for Finance by the Governor of the Central Bank. Search in Google Scholar

Ciarlone, A. (2015). House pricecycles in emerging economies. Studies in Economics and Finance, 32(1), 17–52. https://doi.org/10.1108/SEF-11-2013-0170 Search in Google Scholar

Czapiński, J., & Panek, T. (red.) (2014). Diagnoza Społeczna 2013. Warunki i jakość życia Polaków [SocialDiagnosis 2013. Conditions and quality of life of Poles].Raport, Warszawa. Search in Google Scholar

Dynan, K. E., & Kohn, D. L. (2007). The rise in US household indebtedness: Causes and consequences. Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. Search in Google Scholar

Eurostat. (2021).http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do Search in Google Scholar

Faber, R. J., & O’Guinn, T. C. (1988). Compulsive consumption and credit abuse (Zwanghafter Konsum und Kreditmißbrauch). Journal of Consumer Policy, 11(1), 97–109. https://doi.org/10.1007/BF00411522 Search in Google Scholar

Forrest, R. (2011). Households, homeownership and neoliberalism. In: Forrest R., & Yip, N.M., (ed.). Housing Markets and the Global Financial Crisis, Edward Elgar Publishing. https://doi.org/10.4337/9781849805841.00006 Search in Google Scholar

Christie, H. (2000). Mortgage arrears and gender inequalities. Housing Studies, 15(6), 877–905. https://doi.org/10.1080/02673030020002591 Search in Google Scholar

Iacoviello, M. (2004). Consumption, house prices, and collateral constraints: A structural econometric analysis. Journal of Housing Economics, 13(4), 304–320. https://doi.org/10.1016/j.jhe.2004.09.004 Search in Google Scholar

Iacoviello, M. (2010). Housing in DSGE models: Findings and new directions.In Housing Markets in Europe (pp. 3-16). Springer Berlin Heidelberg.10.1007/978-3-642-15340-2_1 Search in Google Scholar

Łaszek, J., Augustyniak, H., & Olszewski, K. (2021). The Development of the Rental Market in Poland. In R. Sobiecki, J. Łaszek, & K. Olszewski (Eds.), Real Estate at Exposure. New Challenges, Old Problems. SGH Warsaw School of Economics. Warsaw. Search in Google Scholar

McCarthy, Y., & McQuinn, K. (2011). How Are Irish Households Coping with their Mortgage Repayments? Information from the Survey on Income and Living Conditions, The Economic and Social Review. Economic and Social Studies, 42(1), 71–94. Search in Google Scholar

Matel, A., & Olszewski, K. (2021). Changing Determinants of Tenure Choice of Poles. ENHR 2021 working paper. Search in Google Scholar

Matel, A. (2021a). Stay or move out? Young adults housing trajectories in Poland over time and during economic cycle. Unpublished Search in Google Scholar

Matel, A. (2021b). Tenure status in life cycle cohorts in Poland. Real Estate Management and Valuation, 29(3), 1–12. https://doi.org/10.2478/remav-2021-0017 Search in Google Scholar

Methodological Guidelines and Description of EU-SILC Target Variables. (2018). European Commission, Eurostat. Search in Google Scholar

Murphy, E., & Scott, M. (2014). Household vulnerability in rural areas: Results of an index applied during a housing crash, economic crisis and under austerity conditions. Geoforum, 51, 75–86. https://doi.org/10.1016/j.geoforum.2013.10.001 Search in Google Scholar

NBP. (2015). Zasobność gospodarstw domowych w Polsce. Raport z badaniapilotażowego 2014 r. [Household wealth in Poland. Report of the 2014 pilot study] https://www.nbp.pl/aktualnosci/wiadomosci_2015/Raport_BZGD_2014.pdf Search in Google Scholar

NBP. (2016). Report on the situation in the Polish residential real estate market in 2015. Polish National Bank. Search in Google Scholar

NBP. (2020a). Report on the situation in the housing and commercial real estate market in Poland in 2019. Polish National Bank. Search in Google Scholar

Nettleton, S., & Burrows, R. (2001). Families coping with the experience of mortgage repossession in the ‘new landscape of precariousness’. Community Work & Family, 4(3), 253–272. https://doi.org/10.1080/01405110120089332 Search in Google Scholar

Olszewski, K., Augustyniak, H., Laszek, J., Leszczynski, R., & Waszczuk, J. (2016). On the dynamics of the primary housing market and the forecasting of house prices. IFC Bulletins chapters, 41. Search in Google Scholar

O’Neill, P., Duante-Camacho, O., Casiro, J., Gwyther, G., Phibbs, P., Bryan, D., Rafferty, M., & Allon, F. (2010). The Experience of Mortgage Distress in Western Sydney. University of Western Sydney, Penrith, http://www.uws.edu.au/__data/assets/pdf_file/0019/140536/mortgage_distress_report-webversion_hires.pdf Search in Google Scholar

Rea, L. M., & Parker, R. A. (1997). Designing and Conductiong Survey Research – A Comprehensive Guide. Jossey-Bass. Search in Google Scholar

Rubaszek, M. (2019). Private rental housing market underdevelopment: Life cycle model simulations for Poland. Baltic Journal of Economics, 19(2), 334–358. https://doi.org/10.1080/1406099X.2019.1679558 Search in Google Scholar

Rubaszek, M., & Czerniak, A. (2017). Preferencje Polaków dotyczące struktury własnościowej mieszkań: opis wyników ankiety [Housingtenurepreferences of Poles: the surveyresults]. Bank i kredyt, 48 (2), 197-234. Search in Google Scholar

Rubaszek, M., & Rubaszek, J. (2021). Housing tenure preferences among students from two polish universities. Real Estate Management and Valuation, 29(2), 71–83. https://doi.org/10.2478/remav-2021-0014 Search in Google Scholar

Rubaszek, M., & Rubio, M. (2020). Does rental housing market stabilize the economy? A micro and macro perspective. Empirical Economics, 59(1), 233–257. https://doi.org/10.1007/s00181-019-01638-z Search in Google Scholar

Sabaté, I. (2018). To repay or not to repay: Financial vulnerability among mortgage debtors in Spain (Pagar ou não pagar a dívida: vulnerabilidade financeira entre os devedores de crédito para compra de habitação em Espanha). Etnográfica (Lisboa), 22(1), 5–26. https://doi.org/10.4000/etnografica.5130 Search in Google Scholar

Salzman, D. A., & Zwinkels, R. C. J. (2013). Behavioural Real Estate, Tinbergen Institute Discussion Paper, no. 13-088/IV/DSF58. https://doi.org/10.2139/ssrn.2289214 Search in Google Scholar

Scanlon, K., & Whitehead, C. (2011). The UK mortgage market: Responding to volatility. Journal of Housing and the Built Environment, 26(3), 277–293. https://doi.org/10.1007/s10901-011-9220-2 Search in Google Scholar

Twardoch, A., & Heciak, J. (2021). Affordable housing in Poland – the study of a nonexistent sector.URL : https://www.ethz.ch/content/dam/ethz/special-interest/conferencewebsites-dam/no-cost-housing-dam/documents/TwardochHeciak/_final.pdf Search in Google Scholar

Waldron, R. (2016). The “unrevealed casualties” of the Irish mortgage crisis: Analysing the broader impacts of mortgage market financialisation. Geoforum, 69, 53–66. https://doi.org/10.1016/j.geoforum.2015.11.005 Search in Google Scholar

Waldron, R., & Redmond, D. (2017). “We’re just existing, not living!” Mortgage stress and the concealed costs of coping with crisis. Housing Studies, 32(5), 584–612. https://doi.org/10.1080/02673037.2016.1224323 Search in Google Scholar

Zajączkowski, S., & D., Żochowski (2007). Obciążenia gospodarstw domowych spłatami długu: rozkłady i stress testy – na podstawie badań budżetów gospodarstw domowych GUS [Household debt repayment burden: distributions and stress tests - based on CSO household budget surveys]. NBP MateriałyiStudia, 221. Search in Google Scholar

Polecane artykuły z Trend MD

Zaplanuj zdalną konferencję ze Sciendo