The housing affordability crisis generates many negative consequences arising at the individual household and macroeconomic levels.
There is a dramatic escalation of house prices in many global cities around the world in the past decades. What is more serious is that these prices have risen faster than household incomes in some of these cities. According to Demographia International Housing Affordability Survey, the median multiple – the measurement of housing affordability defined by the ratio of median house sale prices to median household incomes – has recently significantly increased in popular global cities, including Hong Kong, Sydney and London. As a result, growing numbers of residents in these cities – especially those with lower incomes – have had to pay higher shares of their income for their rented and purchased housing and thus experience a burgeoning housing affordability crisis
Galster and Lee discuss different measures of housing affordability, the causes and effects of unaffordable housing, previous policy approaches, and potential future trends in affordability.
They propose a systematic, holistic perspective and specify structural relationships for a metropolitan area that delineate the determinants of housing affordability. In their comprehensive analysis of recent research trends
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