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Public Housing and Household Savings-A Three-Decade Repeated Cross-Sectional Analysis.

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Title: Public Housing and Household Savings-A Three-Decade Repeated Cross-Sectional Analysis.
Authors: Zhang Y; National Engineering Laboratory for Big Data Analysis and Applications, Peking University, Beijing 100871, China., Wong MT; Department of Social Work and Social Administration, The University of Hong Kong, Hong Kong, China., Law YW; Department of Social Work and Social Administration, The University of Hong Kong, Hong Kong, China., Yip PSF; Department of Social Work and Social Administration, The University of Hong Kong, Hong Kong, China.
Source: International journal of environmental research and public health [Int J Environ Res Public Health] 2025 Jul 28; Vol. 22 (8). Date of Electronic Publication: 2025 Jul 28.
Publication Type: Journal Article
Language: English
Journal Info: Publisher: MDPI Country of Publication: Switzerland NLM ID: 101238455 Publication Model: Electronic Cited Medium: Internet ISSN: 1660-4601 (Electronic) Linking ISSN: 16604601 NLM ISO Abbreviation: Int J Environ Res Public Health Subsets: MEDLINE
Imprint Name(s): Original Publication: Basel : MDPI, c2004-
MeSH Terms: Public Housing*/economics , Public Housing*/statistics & numerical data, Hong Kong ; Cross-Sectional Studies ; Humans ; Family Characteristics ; Housing/economics
Abstract: Housing affordability is a major determinant of quality of life. Despite the relatively high GDP per capita in Hong Kong (HK) (USD 460,000), about one-third of the population lives in public rental housing (PRH) because they cannot afford private housing. Existing research estimating the benefits of PRH or direct housing supports faces methodological limitations. Addressing this research gap, our study adopts an "in-kind subsidy" approach to estimate the monetary value of PRH, quantifying how much less PRH households might save monthly if they resided in private rental units, after controlling for confounding factors. This paper examines the association of housing types and household savings by applying ordinary least squares (OLS) regression to compare savings among PRH tenants, non-PRH tenants, and mortgage-free homeowners, based on seven rounds of the Household Expenditure Survey data (1989/1990 to 2019/2020). PRH tenants saved significantly more than private housing tenants. In terms of household savings, the value of HK PRH has steadily increased from HKD 4483 in 1999/2000, to HKD 9187 in 2019/2020. For every dollar increase in income, a household would have the propensity to save 0.7 dollars in 2019/2020. Given limited public resources, our findings offer robust evidence regarding the value of public housing. The results underscore the importance of the equitable allocation and effective management of current PRH stock to enhance the upward mobility of low- to middle-income households amid limited housing resources in HK.
References: Empirica (Dordr). 2023;50(1):237-253. (PMID: 36643806)
Contributed Indexing: Keywords: Hong Kong; household savings; public rental housing
Entry Date(s): Date Created: 20250828 Date Completed: 20250828 Latest Revision: 20250831
Update Code: 20250903
PubMed Central ID: PMC12386136
DOI: 10.3390/ijerph22081182
PMID: 40869768
Database: MEDLINE
Description
Abstract:Housing affordability is a major determinant of quality of life. Despite the relatively high GDP per capita in Hong Kong (HK) (USD 460,000), about one-third of the population lives in public rental housing (PRH) because they cannot afford private housing. Existing research estimating the benefits of PRH or direct housing supports faces methodological limitations. Addressing this research gap, our study adopts an "in-kind subsidy" approach to estimate the monetary value of PRH, quantifying how much less PRH households might save monthly if they resided in private rental units, after controlling for confounding factors. This paper examines the association of housing types and household savings by applying ordinary least squares (OLS) regression to compare savings among PRH tenants, non-PRH tenants, and mortgage-free homeowners, based on seven rounds of the Household Expenditure Survey data (1989/1990 to 2019/2020). PRH tenants saved significantly more than private housing tenants. In terms of household savings, the value of HK PRH has steadily increased from HKD 4483 in 1999/2000, to HKD 9187 in 2019/2020. For every dollar increase in income, a household would have the propensity to save 0.7 dollars in 2019/2020. Given limited public resources, our findings offer robust evidence regarding the value of public housing. The results underscore the importance of the equitable allocation and effective management of current PRH stock to enhance the upward mobility of low- to middle-income households amid limited housing resources in HK.
ISSN:1660-4601
DOI:10.3390/ijerph22081182