Study on Price to Income Ratio Approach in Housing Affordability

2021 ◽  
pp. 86-91
Author(s):  
Norazmawati Md. Sani
Keyword(s):  
Housing Affordability ◽  
Income Ratio ◽  
Ratio Approach

scholarly journals AN ASSESSMENT OF HOUSING AFFORDABILITY INDEX AT DISTRICTS LEVEL IN KELANTAN

2020 ◽  
Vol 18 (11) ◽  
Author(s):  
Mariana Mohamed Osman ◽  
Farah Eleena Zainudin ◽  
Noor Suzilawati Rabe ◽  
Mizan Hitam ◽  
Muhammad Faris Abdullah
Keyword(s):  
Affordable Housing ◽  
Housing Prices ◽  
House Price ◽  
Housing Price ◽  
Housing Affordability ◽  
Income Ratio ◽  
Income Data ◽  
Ratio Approach ◽  
Affordable House

The purpose of this paper is to assess the housing affordability level in every district in Kelantan. The goal of this study is to determine the affordability level and the affordable housing price in every district in Kelantan. In order to determine the housing affordability level, the Price-to-Income Ratio approach or known as median multiple is used in this study. The study found that the overall affordable leve in Kelantan from 2012, 2014 to 2016 has increased from 4.5 to 4.8 to 5.4 which clearly showed the level worsen over the years. In term of afforadablee housing price, the Kelantan median house price for 2016 was RM199,900 but using median multiple calculation using the income data, the maximum affordable house price should be within RM 110,844, which clearly showed that the current housing prices is severely unafforable for Kelantan State.

HOUSING AFFORDABILITY IN THE STATE OF MELAKA

2017 ◽  
Vol 15 ◽  
Author(s):  
Mariana Mohamed Osman ◽  
Noor Suzilawati Rabe ◽  
Muhammad Faris Abdullah ◽  
Nur Farhanah Rosli ◽  
Farah Eleena Zainudin
Keyword(s):  
Quality Of Life ◽  
Secondary Data ◽  
Housing Affordability ◽  
The State ◽  
Improve Quality ◽  
Governmental Agencies ◽  
Income Ratio ◽  
Basic Need

Housing is a basic need to man. It provides shelter and comfort from the elements and improve quality of life of the residents. Hence, housing should be affordable to all. This paper assesses the housing affordability for the districts in Melaka. This was achieved by calculating the median multiple of the price income ratio and comparing the score to the housing affordability index. Secondary data were obtained from reports published by the governmental agencies. The results show that housing is mostly moderately unaffordable in the districts of Melaka. Additionally, housing affordability has improved from 2012 to 2014 in majority of the districts.

scholarly journals International Real Estate Review

2019 ◽  
Vol 22 (4) ◽  
pp. 597-625
Author(s):  
Sau Kim Lum ◽  
◽  
Xuefeng Zhou ◽  
Keyword(s):  
Public Housing ◽  
Housing Price ◽  
Housing Affordability ◽  
Supply Side ◽  
Middle Income ◽  
Policy Initiatives ◽  
Income Ratio ◽  
The Government ◽  
Do So ◽  
Resale Market

Housing affordability for many Singaporean households has been declining since the 1990s. While eligible households are directly allocated new-built public housing at subsidized rates, these rates reflect price behavior in the laissez faire resale market and would be higher during periods of excess demand. We examine two policy initiatives since 2011 to improve housing affordability for targeted population segments. First, the government has stabilized the prices at which it sells new- built units by increasing supply-side producer discounts to moderate the extent to which new unit prices track the resale market. Second, demand subsidies are provided to low- and middle-income households to buy new subsidized housing. Price stabilization has prevented the transmission of demand shocks from the resale market to the new-built public housing sector but not improved affordability. However, successive calibrations of capital grants boosted the price to income ratio and debt servicing ratio indicators for households with incomes below the national median. These improvements are progressive, with the less well-off benefitting the most. Furthermore, the grants do not appear to induce housing overconsumption the way that demand subsidies are prone to do so and provide some assurance that the policies adopted in Singapore have not generated allocative inefficiencies.

The Analysis of Housing Consumption

2013 ◽  
Vol 368-370 ◽  
pp. 1931-1936
Author(s):  
Xi Jing Qi ◽  
Huan Zhang ◽  
Bing Xue Guan ◽  
Liang Zhao
Keyword(s):  
Housing Prices ◽  
House Price ◽  
Housing Affordability ◽  
Urban Residents ◽  
Defect Analysis ◽  
Housing Consumption ◽  
Effective Demand ◽  
Reasonable Range ◽  
Income Ratio ◽  
Potential Demand

This paper reveals generating mechanism and reasons of housing consumption by analyzing potential demand and the effective demand. Based on defect analysis of house price-to-income ratio and factors of influencing housing affordability, this paper puts forward the establishing method and process of resident housing affordability index. Finally, in order to keep the housing prices in a reasonable range and active the consumption of the urban residents, the corresponding measures and suggestions are put forward based on present residents housing affordability.

scholarly journals HOUSING AFFORDABILITY IN THE STATE OF JOHOR

2017 ◽  
Vol 15 ◽  
Author(s):  
Mariana Mohamed Osman ◽  
Muhammad Adib Ramlee ◽  
Nasriah Samsudin ◽  
Noor Suzilawati Rabe ◽  
Muhammad Faris Abdullah ◽  
...  
Keyword(s):  
Affordable Housing ◽  
Housing Prices ◽  
Housing Price ◽  
Housing Affordability ◽  
The State ◽  
Property Market ◽  
Population Changes ◽  
Demand And Supply ◽  
Economic Theories ◽  
Income Ratio

The Malaysian property market has been facing significant changes in terms of housing price since a decade ago and these changes are different between states. The changes in housing prices are being supported by the economic theories of demand and supply as well as the regional economic and demographic factors such as income level, housing supply stock, speculative buying and population changes. This paper provides an overview of the affordable housing policy and elaborates on the housing affordability index for the districts in the State of Johor. Using datasets for year 2012 and 2014 in order to determine the median multiple of price-income ratio, this paper found that housing in all the districts were generally unaffordable. Some districts recorded HAI of severely unaffordable, while others in the seriously and moderately unaffordable index categories.

The impact of Airbnb on housing affordability: Evidence from Hong Kong

2021 ◽  
pp. 239980832110431
Author(s):  
Cong Liang ◽  
Matthew Chi Hei Yeung ◽  
Alan Kai Ming Au
Keyword(s):  
Hong Kong ◽  
Rental Housing ◽  
Housing Affordability ◽  
Rapid Expansion ◽  
Multiple Sources ◽  
Short Term ◽  
Econometric Methods ◽  
Income Ratio ◽  
The Impact

Recent years have witnessed the rapid expansion of the home-sharing business. The home-sharing services provided by Airbnb not only allow the homeowner to earn extra income by renting out part of the property to the potential renters but also provides the renters an authentic travel experience by living with residents. The emerging business model of Airbnb may bring about some uncertainties to rental housing markets. This study aims to explore an important issue – whether the home-sharing services provided by Airbnb would exacerbate the problem of housing affordability in Hong Kong. By examining the data from multiple sources such as the website of Airbnb and Census statistics from the Hong Kong Government, and housing rental transactions from property agents’ website via several econometric methods, we found that (1) the arrival of Airbnb would drive up housing rent rate around 3.6–4%; (2) The Airbnb activities would increase the rent-to-income ratio by 4%–4.7% in Hong Kong; (3) short-term home-sharing provided by Airbnb under current circumstance would lead to housing unaffordability in Hong Kong. It is suggested that regulations/guidelines on home-sharing should set a quota or limit the number of offering from long-term rentals to short-term rentals.

scholarly journals Spatial Justice of a Chinese Metropolis: A Perspective on Housing Price-to-Income Ratios in Nanjing, China

2019 ◽  
Vol 11 (6) ◽  
pp. 1808 ◽  
Author(s):  
Shanggang Yin ◽  
Zhifei Ma ◽  
Weixuan Song ◽  
Chunhui Liu
Keyword(s):  
Urban Area ◽  
Urban Areas ◽  
Interpolation Method ◽  
Housing Price ◽  
Housing Affordability ◽  
Vulnerable Groups ◽  
Kriging Interpolation ◽  
Spatial Justice ◽  
Kriging Interpolation Method ◽  
Income Ratio

The housing price-to-income ratio is an important index for measuring the health of real estate, as well as detecting residents’ housing affordability and regional spatial justice. This paper considers 1833 residential districts in one main urban area and three secondary urban areas in Nanjing during the period 2009–2017 as research units. It also simulates and estimates the spatial distribution of the housing price-to-income ratio with the kriging interpolation method of geographic information system (GIS) geostatistical analysis and constructs a housing spatial justice model by using housing price, income, and housing price-to-income ratio. The research results prove that in the one main urban area and the three secondary urban areas considered, the housing price-to-income ratio tended on the whole to rise, presenting a core edge model of a progressive decrease from the Main Urban Area to the secondary urban areas spatially, with high-value areas centered around famous school districts and new town centers. The housing spatial justice degree presented a trend opposite to that of the housing price-to-income ratio pattern; it progressively decreased from the secondary urban areas to the Main Urban Area. Furthermore, the spatial justice degree tended to decrease in the new towns, in the periphery of the Main Urban Area, and in the secondary urban areas, and it tended to rise, relatively, in the inner urban areas. The enhancement of the housing price-to-income ratio has caused the urban housing spatial justice degree to become gradually imbalanced, gradually squeezing out the poor and vulnerable groups to urban fringe areas and leading to a phenomenon of middle class stratification. This has thus aroused social problems such as housing differentiation and class solidification, etc., and has caused inequality in social spaces. Tt is therefore urgently necessary to reflect on urban space production with the value and principle of spatial justice, which is also the only way to obtain urban sustainable development, in mind.

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