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

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.