An analysis of factors affecting homeownership: a survey of Hong Kong households

This study aims at investigating factors affecting household homeownership in Hong Kong. Household economic and socio-demographic factors affecting household decisions to own a home have been long overlooked in the literature, especially in the Hong Kong context. Thus, against a backdrop of recent sky-rocketing housing prices in the Hong Kong property market, characterised with very high construction costs and lucrative spending by mainland immigrants, this study sets out to understand factors preventing homeownership. A total of 502 people were surveyed, using a closed-ended questionnaire containing 14 items identified from the literature. Employing factor analysis, the 14 items were grouped into 4 major factors including: household economy, cost of living/housing, general property cost and availability, and property market uncertainty. It was found that homeownership cut across different age groups and demographic status. Although the respondents did not have consensus in agreement, the results show that the top three significant factors that affect homeownership are: too high house prices, general cost of living pressures, and too high required upfront deposits are too high. The findings have significant implications for the government and policy makers in Hong Kong.