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Housing affordability in Romania. Towards quantifying the trends

Author

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  • Costin CIORA

    (Lecturer, Department of Financial Analysis and Valuation, The Bucharest University of Economic Studies)

Abstract

In recent years, the impact of negative price movement of housing has led to difficulties both to sellers and potential buyer. This intense volatility has affected not only the financial sector but also the way in which housing affordability can be understood and measured. With variation in prices, together with variation in income, assessing housing affordability for different periods could be difficult, because of the changing economic environment. The aim of this paper is to answer the question of housing affordability measurement by applying it to the Romanian real estate market. The development of cities creates the premises for new apartments that should be affordable. Also, old apartments should be considered more affordable. Our research provides an indepth analysis on measuring apartment affordability in Bucharest, by taking into consideration different age intervals relevant for the study.

Suggested Citation

  • Costin CIORA, 2015. "Housing affordability in Romania. Towards quantifying the trends," Romanian Journal of Economics, Institute of National Economy, vol. 40(1(49)), pages 126-137, june.
    • Handle: RePEc:ine:journl:v:40:y:2015:i:49:p:126-137
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    References listed on IDEAS

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    1. David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," NBER Working Papers 19079, National Bureau of Economic Research, Inc.
    2. Laamanen, Jani-Petri, 2017. "Home-ownership and the Labour Market: Evidence from Rental Housing Market Deregulation," Labour Economics, Elsevier, vol. 48(C), pages 157-167.
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    5. Robert J. Shiller, 2007. "Understanding recent trends in house prices and homeownership," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 89-123.
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    More about this item

    Keywords

    O18; R21; R31;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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