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Housing affordability and inequality:A consumption-adjusted approach

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  • Ben-Shahar, Danny
  • Gabriel, Stuart
  • Golan, Roni

Abstract

We introduce a new measure of housing affordability that adjusts for normative variation in housing consumption. The new measure is computed using extensive micro-data from Israel for the 1998–2015 period. Findings suggest sharp declines in Israel quality- and consumption-adjusted affordability. Further, the new consumption-adjusted measure suggests more pronounced affordability burdens among minority and underprivileged groups. The new measure also gives rise to elevated Gini measures of housing affordability inequality. We also find that recent trending up in house prices and income in Israel is associated with more pressing consumption-adjusted affordability challenges among those already in housing distress, particularly in outlying, peripheral areas.

Suggested Citation

  • Ben-Shahar, Danny & Gabriel, Stuart & Golan, Roni, 2019. "Housing affordability and inequality:A consumption-adjusted approach," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    • Handle: RePEc:eee:jhouse:v:45:y:2019:i:c:2
    DOI: 10.1016/j.jhe.2018.02.004
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    More about this item

    Keywords

    Housing affordability; Housing consumption; Inequality; Price-to-income;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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