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GINI DP 32: Income Inequality and Access to Housing in Europe

Author

Listed:
  • Caroline Dewilde

    (TS Social and Behavioral Sciences, Tilburg University)

  • Bram Lancee

    (Research unit Migration, Integration, Transnationalization, Social Science Research Center Berlin (WZB))

Abstract

This paper analyses the relation between income inequality and access to housing for low- income households. Three arguments are developed, explaining how inequality might affect housing affordability, quality and quantity. First, it is the absolute level of resources, not their relative distribution, which affects access to housing. Second, inequality affects access to housing in different ways, due to rising aspirations and status competition. Third, the effect of inequality is mediated by housing market pressures. Multilevel-models for 28 countries indicate that: 1) there is no relation between inequality and housing affordability – the level of resources matters, rather than their distribution; 2) there exists a positive relation between inequality and crowding for owners; 3) higher levels of income inequality are associated with lower housing quality for owners and renters. Although there is a relation between inequality and access to housing, it is complex and not mediated by our indicator of house price-changes. Key words: Income inequality, low incomes, housing conditions, comparative research, Europe.

Suggested Citation

  • Caroline Dewilde & Bram Lancee, 2012. "GINI DP 32: Income Inequality and Access to Housing in Europe," GINI Discussion Papers 32, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:ginidp:32
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    File URL: https://www1.feb.uva.nl/aias/DP32-Dewilde,Lancee.pdf
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    References listed on IDEAS

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    1. 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.
    2. Matlack, Janna L. & Vigdor, Jacob L., 2008. "Do rising tides lift all prices? Income inequality and housing affordability," Journal of Housing Economics, Elsevier, vol. 17(3), pages 212-224, September.
    3. Dietz, Robert D. & Haurin, Donald R., 2003. "The social and private micro-level consequences of homeownership," Journal of Urban Economics, Elsevier, vol. 54(3), pages 401-450, November.
    4. Brian Nolan & Christopher T. Whelan, 2010. "Using non-monetary deprivation indicators to analyze poverty and social exclusion: Lessons from Europe?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 305-325.
    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.
    6. Dan Andrews & Aida Caldera Sánchez, 2011. "Drivers of Homeownership Rates in Selected OECD Countries," OECD Economics Department Working Papers 849, OECD Publishing.
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    Cited by:

    1. Danny Ben-Shahar & Jacob Warszawski, 2016. "Inequality in housing affordability: Measurement and estimation," Urban Studies, Urban Studies Journal Limited, vol. 53(6), pages 1178-1202, May.

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    Keywords

    income inequality; low incomes; housing conditions; comparative research; europe.;
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