Public housing and wellbeing

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Public housing and wellbeing  

• by
• Dr. Vasanthi M Peter

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Paper plan

• The current housing environment and adverse
  effects on poorer communities in New Zealand -
  Introduction
• Internal and external factors such as
  political/legal, economic, social, technological
  and environmental variables (PESTEL analysis)
  considered for the study Review of Strategic
  Management Literature Section
• Results of the study shows some average
  performance of selected environmental, and
  technological variables Finding
• The role of government in promoting housing
  stability for the marginalised group is explored
  - Discussion Section
•  

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Importance of this research

• The research adds value to current policy
  discussions on housing affordability
• The continuing threat of the real estate bear
  market in NZ (including fall of some of the Euro
  governments, Greece) results in wellbeing and
  affordability issues.

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New Zealand Public Housing

• The current rising unemployment, global
  uncertainties and complexities, calls for
  wellbeing measures to be taken seriously within
  government housing departments.
• Though the main intention of New Zealand housing
  strategy aimed for the period 2006-2015 is to
  provide access to quality, affordable homes for
  all New Zealanders is relevant at all times, yet
  there are few adaptations that are necessary
  during economic disturbances of 2011 and beyond.

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Wellbeing and Systems thinking

• PESTEL Analysis
• Political, Economical, Social, Technological,
  Ecological and Legal factors
• Theoretical framework for the study is based on
  PESTEL analysis
• It is evident that little systematic research has
  been applied for housing sector following PESTEL
  analysis in the strategic management context.

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Political and Legal Factors Research Questions

• Is state/public housing instituted (for example,
  NZ Welcome Home loan) loan to value ratio an
  important variable in the determinant of credit
  risk?
• Is it the credit-constrained households in the
  population, including low-income households
  default on their payments?

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Economic Factors Research Question

• What is the role of changing prices, expressed
  through affordability indicator?

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Social Factors Research Questions

• Do employment status, educational level, have
  any bearing on credit risk?
• Do social variables such as marital status,
  number of dependents, younger families, family
  type affect the risk of default?

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Technological factor Research question

• Does public housing technology including
  assistance systems affect default risk?

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Environmental factor Research question

• Finally, does environmental factors including
  locational factor influence default risk?

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Research method

• Both Qualitative and Quantitative research
  methods are used for building the risk management
  model
• The model is used to measure the resourcefulness
  of individual clients or the interventions of
  financial counsellors

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Data

• This study provides an extensive examination of
  data using secondary government housing data.
  Data from Housing New Zealand, Statistics NZ
  files are used.
• The model assists in identifying the extent
  factors, such as political economical, social and
  others influence the risk of default in home
  ownership.

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Welcome Home Loan and Home Ownership

• Education programmes
• The Corporations Welcome Home Loan and Home
  Ownership.
• The Welcome Home Loan measure was to assist
  9251,130 in 2008 households through lending.
• This measure was not achieved, with only 716
  households assisted in 2008.

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Hobsonville project

• Developed around 3,000 homes
• Fifteen percent for state housing
• 15 percent affordable homes for first-home buyers
• Others (60 percent) of the homes for private
  owners
• Encourage closer lender-recipient relationships
  for affordable housing.

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HNZC strategy 2007-2012

• State housing, implementation of the Te Au Roa,
  the Ma- ori Strategic Plan
• Improved Home Ownership Education programme
• Support new housing solutions for the Ma- ori
  in rural areas
• The Ma- ori in rural areas measure was to
  approve 2530 rural loans.
• This measure was achieved, with the approval of
  26 loans.

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Eastern Porirua and Auckland HNZC clients

• Eastern Porirua
• In Auckland the need for home prices should
  become affordable for low to middle income
  clients
• Observation by program staff and external
  counsellors - to help the cases succeed in home
  ownership endeavours
• The preliminary finding suggested that the
  homeownership programs have not been highly
  successful in assisting all the prospective
  clients into homeownership.

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Findings

• Preliminary test results show that the risk
  management model for Housing NZ are robust.
• Results Good performance of human resource
  related variable such as human capital resulted
  in opportunities
• Poor performance of economy, low income
  households resulted in distress.
• The study demonstrates environment (including
  housing location) and its dynamics play a crucial
  role in Housing New Zealands organisational
  performance and its final impact on its clients.
•  

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Recommendations Homeownership and safety net

• To assist middle/low income households who have a
  desire and ability to purchase a home government
  initiatives
• Introduce the program safety net
• Data management systems Safety Net
• Endeavour to develop data management systems that
  are more flexible
• Ensure close monitoring of servicing agents.

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Any questions