Financing major repairs in apartment buildings through infill development: Exploring views and benefit requirements of the owner-occupiers

Tuulia Puustinen, Kyösti Pennanen, Heidi Falkenbach, Anne Arvola, Kauko Viitanen

    Research output: Contribution to journalArticleScientificpeer-review

    1 Citation (Scopus)

    Abstract

    Purpose: The purpose of this paper is to study views of owner-occupiers concerning infill development as a mechanism for financing major repairs in apartment buildings and financial benefits they require from the infill development for accepting it near their homes (on the plot of their housing company). Design/methodology/approach: The data used draws upon a survey of 894 respondents concerning residents’ views on infill development in Finland. The required financial benefits from the infill development were questioned in both relative proportions of the expenses related to major repairs and concrete monetary sums. Findings: First, the findings indicate that the financial benefits owner-occupiers require in order to accept infill development are significant, covering about two-thirds of the costs of major repairs during following ten years or over 75 percent of an (imagined) upcoming pipeline repair. Second, approximately one-fifth of the respondents regard that no economic benefit is enough to make them support infill development. Third, people’s decision-making concerning infill development is complex, involving also many other factors than monetary. Practical implications: This paper provides insight into the feasibility of infill development as a means to finance major repairs from the perspective of owner-occupiers. The paper has strong policy implications as it highlights the significance of the public authorities and their policies in enabling the infill development. Originality/value: This is the first academic study to focus on owner-occupiers views and financial requirements for the infill development as a means to finance major repairs in apartment buildings.

    Original languageEnglish
    Pages (from-to)508-527
    Number of pages20
    JournalProperty Management
    Volume35
    Issue number5
    DOIs
    Publication statusPublished - 1 Jan 2017
    MoE publication typeA1 Journal article-refereed

    Keywords

    • Apartment building
    • Finland
    • Infill development
    • Major repairs
    • Owner-occupiers

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