IDEAS home Printed from https://ideas.repec.org/p/prg/jnlwps/v5y2023id5.008.html
   My bibliography  Save this paper

Concepts of Housing Affordability Measurements

Author

Listed:
  • David Mazáček

Abstract

This study investigates the challenges of affordable housing, delving into its concept and the diverse metrics used for measuring housing affordability, which influences the formulation of relevant affordable housing policies. The primary focus of this paper centers on defining the concept of affordable housing, exploring its implications for enhancing quality of life, and addressing the complexities involved in measuring its affordability accurately. Building upon the research, the paper proposes a possible optimal methodology for measuring housing affordability. This method suggests employing a price/rent-to-income ratio, encompassing a comprehensive assessment of housing-related expenses and a refined calculation of household income. Importantly, the study highlights the need for policymakers to differentiate between home-renters and homeowners when discussing housing affordability as well as between the immediate and structural lack of affordability.

Suggested Citation

  • David Mazáček, 2023. "Concepts of Housing Affordability Measurements," FFA Working Papers 5.008, Prague University of Economics and Business, revised 13 Sep 2023.
    • Handle: RePEc:prg:jnlwps:v:5:y:2023:id:5.008
    as

    Download full text from publisher

    File URL: http://wp.ffu.vse.cz/artkey/wps-202301-0008_concepts-of-housing-affordability-measurements.php
    Download Restriction: free of charge
    File URL: http://wp.ffu.vse.cz/pdfs/wps/2023/01/08.pdf
    Download Restriction: free of charge
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Matteo Benetton & Philippe Bracke & João F Cocco & Nicola Garbarinoifo, 2022. "Housing Consumption and Investment: Evidence from Shared Equity Mortgages," The Review of Financial Studies, Society for Financial Studies, vol. 35(8), pages 3525-3573.
    2. Peter Abelson, 2009. "Affordable Housing: Concepts and Policies," Economic Papers, The Economic Society of Australia, vol. 28(1), pages 27-38, March.
    3. Alois Stutzer & Bruno S. Frey, 2008. "Stress that Doesn't Pay: The Commuting Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 339-366, June.
    4. Lawrence Kenny & Adam Reinke, 2011. "The role of income in the formation of new cities," Public Choice, Springer, vol. 149(1), pages 75-88, October.
    5. David Mazáček & Jiří Panoš, 2022. "Key determinants of new residential real estate prices in Prague," FFA Working Papers 5.002, Prague University of Economics and Business, revised 11 Apr 2023.
    6. Ali Anari & James Kolari, 2002. "House Prices and Inflation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(1), pages 67-84.
    7. Jack Favilukis & Pierre Mabille & Stijn Van Nieuwerburgh, 2023. "Affordable Housing and City Welfare," Review of Economic Studies, Oxford University Press, vol. 90(1), pages 293-330.
    8. Raul Berto & Giovanni Cechet & Carlo Antonio Stival & Paolo Rosato, 2020. "Affordable Housing vs. Urban Land Rent in Widespread Settlement Areas," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    9. AbdulLateef Olanrewaju & Seong Yeow Tan & Abdul‐Rashid Abdul‐Aziz, 2018. "Housing providers' insights on the benefits of sustainable affordable housing," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(6), pages 847-858, November.
    10. Gabriel Metcalf, 2018. "Sand Castles before the Tide? Affordable Housing in Expensive Cities," Journal of Economic Perspectives, American Economic Association, vol. 32(1), pages 59-80, Winter.
    11. Gan, Quan & Hill, Robert J., 2009. "Measuring housing affordability: Looking beyond the median," Journal of Housing Economics, Elsevier, vol. 18(2), pages 115-125, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ikenna Stephen Ezennia & Sebnem Onal Hoskara, 2019. "Methodological weaknesses in the measurement approaches and concept of housing affordability used in housing research: A qualitative study," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-27, August.
    2. Grossmann, Volker & Larin, Benjamin & Löfflad, Hans Torben & Steger, Thomas, 2021. "Distributional consequences of surging housing rents," Journal of Economic Theory, Elsevier, vol. 196(C).
    3. Stefano Colonnello & Mariela Dal Borgo, 2024. "Raising Household Leverage: Evidence from Co-Financed Mortgages," Working Papers 2024: 01, Department of Economics, University of Venice "Ca' Foscari".
    4. Jennifer Roberts & Karl Taylor, 2017. "Intra-household commuting choices and local labour markets," Oxford Economic Papers, Oxford University Press, vol. 69(3), pages 734-757.
    5. Miglena Stoyanova, 2022. "Applicability Of Blockchain Technology For Digital Transformation Of Construction," INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCE "CONSTRUCTION ENTREPRENEURSHIP AND REAL PROPERTY", University of Economics - Varna, issue 1, pages 137-144.
    6. Charles Ka Yui Leung & Joe Cho Yiu Ng, 2018. "Macro Aspects of Housing," GRU Working Paper Series GRU_2018_016, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    7. Peter Bäckström & Erika Sandow & Olle Westerlund, 2016. "Commuting and timing of retirement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 125-152, January.
    8. Mouratidis, Kostas & Ettema, Dick & Næss, Petter, 2019. "Urban form, travel behavior, and travel satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 306-320.
    9. Zuoxian Gan & Tao Feng & Min Yang, 2018. "Exploring the Effects of Car Ownership and Commuting on Subjective Well-Being: A Nationwide Questionnaire Study," Sustainability, MDPI, vol. 11(1), pages 1-20, December.
    10. Dong, Han & Zhang, Jun & Cirillo, Cinzia, 2019. "Exploring, understanding, and modeling the reciprocal relation between leisure and subjective well-being," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 813-824.
    11. William A Pizer & Steven Sexton, 2019. "The Distributional Impacts of Energy Taxes," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 104-123.
    12. Roula Inglesi-Lotz & Rangan Gupta, 2011. "Relationship between House Prices and Inflation in South Africa: An ARDL Approach," Working Papers 201130, University of Pretoria, Department of Economics.
    13. Malmendier, Ulrike M. & Steiny Wellsjo, Alex, 2020. "Rent or Buy? The Role of Lifetime Experiences on Homeownership within and across Countries," CEPR Discussion Papers 14935, C.E.P.R. Discussion Papers.
    14. Gottlieb, Paul D. & Rudel, Thomas & O'Neill, Karen & McDermott, Melanie, 2011. "Is agricultural zoning exclusionary?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103562, Agricultural and Applied Economics Association.
    15. Wei Hu & Shanggang Yin & Haibo Gong, 2022. "Spatial–Temporal Evolution Patterns and Influencing Factors of China’s Urban Housing Price-to-Income Ratio," Land, MDPI, vol. 11(12), pages 1-15, December.
    16. Daniel Fehrle, 2021. "Hedging Against Inflation: Housing vs. Equity," Discussion Paper Series 342, Universitaet Augsburg, Institute for Economics.
    17. Alberto Montagnoli & Jun Nagaysu, 2013. "An investigation of housing affordability in the UK regions," Working Papers 1316, University of Strathclyde Business School, Department of Economics.
    18. Glenn Lyons & Kiron Chatterjee, 2007. "A Human Perspective on the Daily Commute: Costs, Benefits and Trade‐offs," Transport Reviews, Taylor & Francis Journals, vol. 28(2), pages 181-198, July.
    19. Christopher Mackie & Conal Smith, 2015. "Conceptualizing Subjective Well-Being And Its Many Dimensions – Implications For Data Collection In Official Statistics And For Policy Relevance," Statistics in Transition New Series, Polish Statistical Association, vol. 16(3), pages 335-372, September.
    20. Stefan Ivanov, 2022. "Factors Influencing The Investment Policy Of Resorts On The Bulgarian Black Sea Coast," INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCE "CONSTRUCTION ENTREPRENEURSHIP AND REAL PROPERTY", University of Economics - Varna, issue 1, pages 210-219.

    More about this item

    Keywords

    Affordable housing concept; Housing policy; Affordable housing measurements; Actual affordability; Long-term affordability;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • 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
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlwps:v:5:y:2023:id:5.008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.