Housing Affordability, Public Policy and Economic Dynamics: An Analysis of the City of Lisbon

Abstract

The increasing growth of population living in cities, associated with the commoditization of investment in real estate, has impacted real estate prices and created obstacles for average income families to meet their housing needs. This problem is generalized to virtually all cities, but it has assumed larger proportions in cities where economic activities (tourism, financial services, high-tech industry) have flourished after the financial crisis. Lisbon is one of those cases. The growth of short-term rentals led to an increase in the property prices well above the average income growth, eroding housing affordability. This paper will focus on analyzing Lisbon´s affordability and understanding its main determinants. The analysis is carried out from the compilation and processing of data from 2004 to 2019, in the context of the municipality of Lisbon, using statistical instruments of linear regression in an exploratory and predictive approach. The results suggest a great influence of factors such as tourism, the foreign population with resident status, the propagation of short-term rentals and public policies on the worsening of housing affordability. In view of these conclusions, the preponderance of the type of public policies implemented and their relationship with the most prominent factors on housing affordability is debated.

Study of Residential Transformation Models in Special Housing for Low-Income Communities; Literature Review

“…It is so important that the UN sets this issue as one of the goals (goal 11) of sustainable development (Sustainable Development Goals or SDGs) [1,2]. Some studies [3][4][5][6][7][8][9][10][11][12][13][14] state that adequate housing is housing that is quality, safe, and sustainable. Cheap housing is directed at the ability of city residents to obtain (own) housing specifically for those with low incomes.…”

Framework for Quantifying Energy Impacts of Rehabilitation of Derelict Buildings: Assessment in Lisbon, Portugal

“…In Lisbon, the urban sprawl has been motivated by the extreme difficulty the Portuguese population faces acquiring or renting houses within the city. Different causes justify this, including: the median sale value per square meter of family dwellings in the city increased by around 76% between 2016 (1875 EUR/m 2 ) and 2021 (3296 EUR/m 2 ) (INE 2022b); long-term housing leases have suffered a reduction of 75% between 2015 and 2020 (supported by the growth of short-renting associated with high levels of tourism); and the purchasing power of foreign investors completely outweighs the purchasing power of Portuguese citizens (the median price of housing purchased by foreign buyers is more than 3 times that of national buyers) [8].…”

The Problem of Cheap Housıng Development for Low-Income Communıtıes ın Urban; Transformatıon of the Transıtıonal Space and Revıew for Further Research Posıtıons

“…The Problem of Cheap Housıng Development for Low-Income Communıtıes ın Urban; Transformatıon of the Transıtıonal Space and Revıew for Further Research Posıtıons Issues that have been widely discussed and become material for criticism by researchers and practitioners are regarding the provision of housing and the affordability of the community in obtaining housing. Some recent researchers who are concerned with analyzing this problem include Lee et al (2022); Lorga et al (2022); Galster & Lee (2021a); Galster & Lee (2021b); Haffner & Hulse (2021); Kim et al (2021); Seitz (2021); Reyes (2021); Izar & Mtwangi-Lumbumba (2021); Gibbs (2021); Whitehead & Goering (2021); Dawkins (2021); Wetzstein (2017); and Deidda (2015). Some of the studies above state that the issue of housing provision or affordability occurs in all countries, both developed countries, and especially developing countries.…”