151. RESILIENCE OF HOUSEHOLDS ON THE HOUSING REAL ESTATE MARKET TO ECONOMIC SHOCKS IN THE 2019-2022.
- Author
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MARTYNIAK, Marta
- Subjects
REAL estate sales ,ECONOMIC shock ,PLANNED communities ,RUSSIAN invasion of Ukraine, 2022- ,HOUSEHOLDS ,EVIDENCE gaps ,LOAN reimbursement - Abstract
Purpose: Since 2019, we have been observing economic shock events in Poland - the COVID19 pandemic and its effects, the outbreak of the war in Ukraine and ongoing inflation. In the face of these unexpected events, the real estate market has undergone many changes with negative consequences for households. A research gap was found in terms of the resilience of households in the market in question. The aim of the article is to examine whether households have demonstrated financial resilience to the above-mentioned events. Methodology: First, a critical analysis of the literature on the subject was carried out, thanks to which two dominant definitions of the concept of household resilience in the housing real estate market were identified. Then, based on previously conducted research, monthly repayment of loan instalments was simulated to determine whether households showed resistance to economic shocks. Findings: As a result of the research, it was found that households were not resistant to economic shocks, including the effects of the pandemic, the outbreak of the war in Ukraine and rising inflation. Moreover, it was shown that, assuming average earnings in the economy, average households do not have the ability to repay increasing loan instalments in accordance with the proposed indicator below 15% of the monthly salary. The amount of the loan instalment throughout the simulation period significantly exceeds this value. Therefore, taking into account the presented definitions of immunity, its absence was found in both cases. Research implications: The study's results provide a valuable source of information about resilience of households in real estate market and partially fills the research gap in this area. Also indicates further possible research directions. Originality: The considerations presented show households on the real estate market from a new perspective - in terms of their resistance to unexpected events. The article is addressed primarily to people interested in researching the real estate market, as well as to households struggling with problems related to financing their housing needs. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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