Homeownership in urban China: an empirical study of borrower characteristics and the Housing Provident Fund program in Kunming

Abstract

Purpose This paper aims to develop and estimate a logit model of whether homeownership could be promoted by participation in and use of the Housing Provident Fund (HPF) program, with a focus on factors that influence the use of HPF loans. Design/methodology/approach This paper develops and estimates a logit model of whether homeownership could be promoted by participation in and use of the HPF program, with a focus on factors that influence the use of HPF loans. Findings The results show that coefficients of marital status, educational level, age, duration of employment and employer are significantly related to the use of HPF loan for homeownership. Research limitations/implications Because of the chosen research approach, the research results may lack generalizability. Practical implications The research findings provide a better understanding of homeowners’ characteristics. Originality/value To manage the HPF program effectively, it is important for government to have a better understanding of the underlying demand for homeownership, especially with respect to the different demographic variables and accessibility to HPF loans and the HPF.