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Waiting for a home: the price of public housing delays in Kuwait

Author

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  • AlBader, Suleiman H.
  • AlSabah, Khaled W.

Abstract

Residential real estate prices in Kuwait have risen well beyond the reach of the average Kuwaiti household, with homes trading at more than 22 times the typical annual income, placing Kuwait among the most unaffordable markets globally. This study examines the relationship between housing prices and the waitlist for government-provided homes administered by the Public Authority for Housing and Welfare (PAHW). We find that growth in the PAHW waitlist is positively associated with nationwide price increases, even after accounting for changes in wages, credit availability, and interest rates. Specifically, an increase of 6,134 applicants to the waitlist – the same seen in 2024 – is associated with a 2.7% rise in residential real estate prices, holding other factors constant. The association varies by city and appears to be asymmetric: prices tend to rise more sharply during periods of weak reductions in PAHW waitlist and tend to stabilise or decline in periods when PAHW actively reduces its applicant waitlist, especially in mid-priced areas. These findings highlight the potential for housing policy performance to shape affordability outcomes across different segments of the market.

Suggested Citation

  • AlBader, Suleiman H. & AlSabah, Khaled W., 2025. "Waiting for a home: the price of public housing delays in Kuwait," LSE Research Online Documents on Economics 129678, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:129678
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    File URL: http://eprints.lse.ac.uk/129678/
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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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