Identifying critical enablers for homeownership in Hong Kong

Purpose - The purpose of this paper is to present a comprehensive assessment of the influential factors that must be considered in an effort to enhance homeownership. Design/methodology/approach - A list of 14 factors identified through the literature were assessed through a questionnaire survey with 502 useful responses. The data collected were analysed using mean item score (MIS), exploratory factor analysis (EFA) and structural equation modelling (SEM). Findings - MIS analysis revealed “prioritizing lending towards first-time buyers”, “reforming planning process to allow building of more homes” and “introducing subsidies for all first-time buyers” as the most influential factors affecting homeownership. Using EFA, 3 key factors were generated from the 14 factors: subsidies and policy reforms; fiscal measures; and monetary measures. The SEM results show that all three factors have a significant positive effect on homeownership at different levels. Originality/value - This paper empirically examines the enabling factors for homeownership in Hong Kong, revealing a clear effect of various group factors on homeownership. The paper proposes practical and policy recommendations to improve homeownership rate.