Housing Affordability in Three Dimensions: Price, Income and Interest Rates

Trimbath, Susanne; Montoya, Juan Pablo Bohórquez

doi:10.2139/ssrn.349681

Cited by 11 publications

(16 citation statements)

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“…This quotation implies that supply related factors greatly influences the affordability of housing provided for rent and/or for outright purchase. This concurs with the findings made by Montoya (2002), Norazmawati (2007) as cited in Ismail et al (2015) and Senayah (2015).…”

Section: International Journal Of Regional Developmentsupporting

confidence: 92%

“…Literature show that demand and supply related factors individually or jointly influence affordability of housing (Trimbath & Montoya, 2002). The demand factors include rapid urbanization, household formation rates, household demographic characteristics, house-cost financing, and the country's macroeconomic conditions (Senayah, 2015).…”

Section: Factors Influencing Affordability Of Housingmentioning

confidence: 99%

“…For the supply factors may include the availability and cost of land, labour, building materials, social infrastructure availability and housing finance. Housing affordability is shaped and determined by house prices, household income, household spending patterns and mortgage interest rates, according to Trimbath and Montoya (2002) and Norazmawati (2007) as cited in Ismail et al (2015).…”

Section: Factors Influencing Affordability Of Housingmentioning

confidence: 99%

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Housing Affordability: Factors Influencing Housing in the Tamale Metropolis of Ghana

Zakaria

Danyi

2020

IJRD

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Housing is considered a basic human need. Yet deficit housing supply plagues Ghana. Studies on housing concentrate mainly on offering accommodation that neglects the problem of its affordability. As a result, this study examines factors influencing housing affordability using the Tamale Metropolis as a case study. Using stratified random sampling methodology, 271 renters and homeowners was chosen. Data analysis utilized descriptive statistics. The study showed inflation, rapid urbanization, and building material costs were the dominant factors that influence housing affordability. Rent was also found to be relatively affordable for all categories of housing units. Furthermore, it emerged that the efforts of homeowners, the private sector developers, and the state in the provision of housing were insufficient in providing affordable housing. Consequently, tenants are forced to invest over longer years for constructing or buying a home. The private sector should use less-cost building materials in its projects to provide housing for rent and/or sale, and still present minimum quality standards. It will mean that construction costs will not be too high to justify a high rent once the building is completed. Rent will be on the low side when this happens so tenants can afford to. Equally, it is precarious that the government joins forces with the private estate developers to put up flats at reasonable prices using cheap local building materials.

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Section: International Journal Of Regional Developmentsupporting

confidence: 92%

Section: Factors Influencing Affordability Of Housingmentioning

confidence: 99%

Section: Factors Influencing Affordability Of Housingmentioning

confidence: 99%

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Housing Affordability: Factors Influencing Housing in the Tamale Metropolis of Ghana

Zakaria

Danyi

2020

IJRD

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“…A balance of home price, mortgage interest rate and household income will determine housing affordability (Trimbath and Montoya, 2002). In order to assess affordability, the first step would involve estimating a dwelling size, such that minimum living conditions would be guaranteed.…”

Section: Housing Affordability In Mumbaimentioning

confidence: 99%

Economics of Affordable Housing in Indian Cities

Gandhi

2012

Environment and Urbanization ASIA

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With increasing concentration of economic and commercial activities, rapid economic growth and influx of population in Indian cities, the pressure on affordable housing delivery is mounting, resulting in the proliferation of slums. For a sense of the magnitude of the problem, a snapshot view of slums in a few Indian cities has been provided in this article. Focusing on the case of Mumbai, it is estimated that at the present income distribution and institutional rates, only 5-6 per cent of households can afford a house in Mumbai. The article demonstrates that the failure of policies to adhere to basic economic principles results in massive distortions in the land and housing markets, leading to failure in resolving problems of affordable housing and slums. Thus, for cities to ameliorate affordable housing delivery whilst keeping a check on the growth of slums, it is essential that policies ensure the satisfaction of certain core economic principles-in particular, the household stock and flow principle-that are instrumental in efficient functioning of land and housing markets. The article advocates that the success of Rajiv Awas Yojana would depend upon its ability to understand the informal institutions in place, given the extant distortions in the land and housing markets.

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“…In the case of developed countries, Bramley (1994) in the UK, Stapledon (2010) and Wood and Ong (2011) for Australia, Wright and Hogue (2012) for Canada, and Bernanke (2009) and Holt (2009) for the US, have highlighted the incident of price bubble to take place, which later on reduced the housing affordability level. According to Trimbath and Montoya (2002), affordability 2 is a public policy measure that has threedimensional space measured by home prices, household income and mortgage interest rates. Although in some countries the concern is about price bubble and bursts phenomenon, identifying the factors determining the price bubble is equally important, for instance, Agnello and Schuknecht (2009) has shown that in many developed countries, house price boom is always followed by price burst.…”

Section: Introductionmentioning

confidence: 99%

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2017

AAMJAF

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Housing Affordability in Three Dimensions: Price, Income and Interest Rates

Cited by 11 publications

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Housing Affordability: Factors Influencing Housing in the Tamale Metropolis of Ghana

Housing Affordability: Factors Influencing Housing in the Tamale Metropolis of Ghana

Economics of Affordable Housing in Indian Cities

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