Have the edges of homeownership in Spain proved to be resilient after the Global Financial Crisis?

Montserrat Pareja-Eastaway and María Teresa Sánchez-Martínez

International Journal of Housing Policy, 2017, vol. 17, issue 2, 276-295

Abstract: The direct effect that an exogenous shock like the global financial crisis (GFC) had on the border between one form of tenure and another is particularly interesting in countries were owner-occupancy predominates. Right before the GFC, Spain was experiencing a major housing price bubble, allowing great expectations on housing equity gains together with extremely high numbers of mortgage-indebted households. The GFC represented a major threat for those households at the edges as their financial fragility increased. The aim of this paper is to identify why the edges of ownership in Spain came to be so precarious after the GFC and to assess how resilience is improved (considering both vulnerable households affected by the crisis and those that may be affected later) by securing the future of the edges of homeownership and reducing the volatility observed in an ownership-centred housing market. We will use the MDSR (Mortgage Debt Service Ratio) as an indicator of the higher vulnerability of those on the edges of homeownership. Looking at the consequences at the edges of the GFC in a home-ownership dominated market will provide the arguments for drawing up policies and actions for a new long-term tenure scenario in Spain.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/14616718.2016.1185275 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:intjhp:v:17:y:2017:i:2:p:276-295

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REUJ20

DOI: 10.1080/14616718.2016.1185275

Access Statistics for this article

International Journal of Housing Policy is currently edited by Professor Suzanne Fitzpatrick, Gerard van Bortel and Richard Ronald

More articles in International Journal of Housing Policy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().