Affordability of Housing: Concepts, Measurement and Evidence
AbstractThere has recently been widespread public debate and media attention around housing affordability. This paper discusses the concept of affordability as it applies to housing, examines the approaches used to measure affordability, and then documents the aggregate evidence for New Zealand over the last twenty years. We largely use the Household Economic Survey conducted by Statistics New Zealand to obtain our data. We conclude that affordability is difficult to define and that there is no consensus as to the best way to measure it. Using a range of measures, we examine the trends over time. Our data reveals no long-term trend in affordability when considering all measures. Different measures show different movements over time. Affordability has appeared to move in cycles over the last twenty years.
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Bibliographic InfoPaper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 06/03.
Date of creation: Mar 2006
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housing; affordability; New Zealand;
Find related papers by JEL classification:
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
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- Edward L. Glaeser & Joseph Gyourko, 2003. "The impact of building restrictions on housing affordability," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 21-39.
- Sock-Yong Phang, 2009.
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Microeconomics Working Papers
23052, East Asian Bureau of Economic Research.
- Sock Yong Phang, 2009. "Affordable homeownership policy: implications for housing markets," Working Papers 14-2009, Singapore Management University, School of Economics, revised Nov 2009.
- Sebastian Edwards, 2006. "External Imbalances in an Advanced, Commodity-Exporting Country: The Case of New Zealand," NBER Working Papers 12620, National Bureau of Economic Research, Inc.
- Antje Hildebrandt & Reiner Martin & Katharina Steiner & Karin Wagner, 2012. "Residential Property Markets in CESEE EU Member States," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 8-30.
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