FFA Working Papers 5:008 (2023)672

Concepts of Housing Affordability Measurements

David Mazáček
Faculty of Finance and Accounting, Prague University of Economics and Business

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.

Keywords: Affordable housing concept, Housing policy, Affordable housing measurements, Actual affordability, Long-term affordability
JEL classification: D14, R21, R31, R38

Received: August 30, 2023; Revised: September 13, 2023; Accepted: November 15, 2023; Published online: January 1, 2023  Show citation

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Mazáček, D. (2023). Concepts of Housing Affordability Measurements. FFA Working Papers, 5, Article 2023.008. https://doi.org/10.XXXX/xxx.2023.008
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