Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

In South Africa, financial literacy is crucial for households to make inform decisions. A total of 600 middle class households’ heads were interviewed. Pearson correlation model was used to establish association and logistic regression to identify the most significant factors. The most significant factors at micro-level were employment type (0.003), position at work (0.001), wages and salaries (0.032) while savings (0.09), repo rates (0.09), unemployment (0.31) as well as wages and salaries (0.10) were the most significant variables at the macro-level. Financial literacy among middle class households was inadequate and formal education is not equal to financial education.

Availability and quality of housing have long been serious problems in Hong Kong over the years. It is now apparent that the rapidly increasing aging population (those over 65 years) seems to make the housing issue an even more serious one. As the demographic and social structures of the society continue to evolve, government’s housing policy should be reviewed and revised from time to time, accordingly, in order to satisfy the changing needs of the society. The main objective of this study is to explore the significant determinants of housing consumption of the ‘soon-to-retire’ group and suggest an explanation for their underlying dynamics. The present study adds knowledge to the housing literature in several ways: (a) this is the first comprehensive study in Hong Kong to explore critical determinants of housing consumption behavior of this group; and (b) a new variable, health status (effect of health) was introduced to the housing consumption model. Based on a sample survey data, a cross-sectional regression model is employed to identify significant determinants that influence housing consumption of this group. Empirical results reveal that housing consumption of this group is influenced not only by market and demographic factors but also by the health status of the household. Heath status of the household, of this age group is very important as this group is nearing their retirement. The empirical results further reveal that average household size and housing tenure as significant determinants of housing consumption of this study group. By introducing this new factor, we attempt to broaden our knowledge about the housing consumption of this less explored aspect of the housing market.