Housing affordability: Proper Measurement for Informed Policy Making
The broadly accepted housing affordability indicator is calculated as the housing cost-to income ratio. But this only takes into consideration two averaged variables: household housing costs and household income, both of which are ambiguous and misleading as an across-the- board average. An alternative system of housing affordability measurement is suggested in this paper based on disposable income left after accounting for housing expenses. In contrary to the broadly used conventional indicator, the proposed measurement takes into account different income groups, ages and types of households as well as the level of housing consumption. This indicator, combined with the "after housing poverty line" allows for the singling out of groups of households most in need of housing help, and therefore develop more informed housing polices. Based on the proposed system of measurement, an extensive empirical work is presented using the series of the ABS Income and Housing Surveys. The results demonstrate, from a new angle, the dynamics of housing affordability in Australia during the recent decade which leads to policy implications different to polices currently in use.
|Date of creation:||Aug 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Monash University, Victoria 3800, Australia|
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC
|Order Information:|| Web: http://www.buseco.monash.edu.au/eco/research/papers/ Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shelly J. Lundberg & Jennifer Ward-Batts, 2000.
"Saving for Retirement: Household Bargaining and Household Net Worth,"
wp004, University of Michigan, Michigan Retirement Research Center.
- Shelly Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Discussion Papers in Economics at the University of Washington 0026, Department of Economics at the University of Washington.
- Shelly Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Working Papers 0026, University of Washington, Department of Economics.
- Shelly J. Lundberg & Jennifer Ward-Batts, 2000. "Saving for Retirement: Household Bargaining and Household Net Worth," Econometric Society World Congress 2000 Contributed Papers 1414, Econometric Society.
- B. Douglas Bernheim, 2000.
"How Much Should Americans Be Saving for Retirement?,"
American Economic Review,
American Economic Association, vol. 90(2), pages 288-292, May.
- B. Douglas Bernheim & Lorenzo Forni & Jagadeesh Gokhale & Laurence J. Kotlikoff, 2000. "How much should Americans be saving for retirement?," Working Paper 0002, Federal Reserve Bank of Cleveland.
- Philippe Thalmann, 1999. "Identifying Households which Need Housing Assistance," Urban Studies, Urban Studies Journal Limited, vol. 36(11), pages 1933-1947, October.
- Edward L. Glaeser & Joseph Gyourko, 2002.
"The Impact of Zoning on Housing Affordability,"
NBER Working Papers
8835, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Joseph Gyourko, . "The Impact of Zoning on Housing Affordability," Zell/Lurie Center Working Papers 395, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
- Edward L. Glaeser & Joseph Gyourko, 2002. "The Impact of Zoning on Housing Affordability," Harvard Institute of Economic Research Working Papers 1948, Harvard - Institute of Economic Research.
- Donald R. Haurin & Susan M. Wachter & Patric H. Hendershott, 1995. "Wealth Accumulation and Housing Choices of Young Households: An Exploratory Investigation," NBER Working Papers 5070, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2009-08. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus)
If references are entirely missing, you can add them using this form.