Kováts Bence: The Financialisation of Housing and Housing-related Family Support in Hungary
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6. Trends and determinants of parental support after the regime change
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6.2. Parental microdeterminants
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6.2.3. Types of parental support
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6.2.3.4. Provision of a dwelling

6.2.3.4. Provision of a dwelling

Jegyzet elhelyezéséhez, kérjük, lépj be.!

In 2003, the provision of a flat seemed to be most positively affected by tenure. “Other” tenure had a highly positive, and private tenancy a weakly positive effect. Since “other” tenure covers mostly usufruct, it indicates that many parents transferred the ownership of their flat to their children, while they became usufructuaries or rented a flat elsewhere. Working-class affiliation also had a negative effect, while residence in Budapest and the departure from the (grand)parental home have a positive effect. Provision of a flat measured on the 2015 dataset showed two interesting differences. The effect of class diminished and the effect of parental tenure weakened, while residence in Budapest had a stronger effect.

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The positive effect of residence in a dwelling owned by a relative living somewhere else (mostly usufruct) shows many parents formally provide the ownership of their dwelling to their children but continue to live in it and their children can take use of it only after their death. Therefore, this form of support is often only an indicator of a bequest provided in the future, but not an actual gift, therefore its relevance is modest for the current inquiry. The effect of private tenants also testifies to the same relationship as it is highly unusual in the Hungarian context that parents give up their owner-occupied flat and move to a rental unit to support their children. The lack of the impact of household size on the provision of a dwelling suggests that Örkény and Székelyi’s (n.a.) assumption expounded in Section 4.3.3 that parents with many children do not provide this type of support to their children is not confirmed.

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The strengthening effect of settlement type and weakening tenure effect could indicate the provision of a flat is less simply a transfer of home ownership without the transfer of rights to use, but instead has become an investment strategy of households. The provision of a flat in most financialised local housing markets (such as Budapest), with the promise of high gains made on housing price appreciation, or at least counterbalancing the inflation of the value of parental gifts in periods of housing price appreciation, is a prospective decision, and this might be the reason behind the strengthening impact of settlement type. Also, the popularity of this type of support among residents of Budapest explains the low score of financial support among them, as the provision of a dwelling can also be considered to be a type of financial support which substitutes cash gifts.

Jegyzet elhelyezéséhez, kérjük, lépj be.!

Surprisingly, as the originally weak, but by 2015 diminished class effect indicates, the choice of combining support with investment is less influenced by parents’ socio-economic status. This needs to be interpreted carefully since much of the dwelling transfers are quasi-bequests among which lower-income households can represent a higher share possibly compromising the effect of class on the provision of this type of support. Nonetheless, the abundance of dwellings privatised at a preferential price after the regime change, knowledge of local housing market trends and easily accessible mortgages in Budapest after the millennium can also explain the diverse socio-economic background of providers of this type of support.
 
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