Trends and drivers of housing affordability in the EU: Insights from panel data analysis

Housing affordability is a crucial issue that affects both individual and societal well-being. Affordable housing ensures that households can meet their basic living needs without experiencing undue financial stress. It influences labor mobility, consumer spending, economic growth, and resilience. T...

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Main Authors: Josip Arnerić, Matej Kikerec, Branimir Skoko
Format: Article
Language:English
Published: Croatian Statistical Association 2024-01-01
Series:Croatian Review of Economic, Business and Social Statistics
Subjects:
Online Access:https://hrcak.srce.hr/file/466651
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author Josip Arnerić
Matej Kikerec
Branimir Skoko
author_facet Josip Arnerić
Matej Kikerec
Branimir Skoko
author_sort Josip Arnerić
collection DOAJ
description Housing affordability is a crucial issue that affects both individual and societal well-being. Affordable housing ensures that households can meet their basic living needs without experiencing undue financial stress. It influences labor mobility, consumer spending, economic growth, and resilience. Typically, housing affordability is measured by the proportion of household income spent on housing costs, including rent or mortgage payments, utilities, and maintenance. However, no single metric is universally accepted (cost-to-income ratio, residual income approach or subjective measures assessing households' perceptions of their housing affordability). These diverse indicators reflect the complexity of housing affordability and highlight the need for comprehensive analysis using multiple metrics, which is the purpose of this paper. Panel analysis of the socio-economic and demographic demand and supply drivers of housing affordability is essential for developing effective policies that ensure all citizens have access to adequate and affordable housing, as many European Union countries have faced a housing affordability crisis characterized by rising housing prices, housing costs and insufficient housing units supply.
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spelling doaj-art-db600cf65a7c4bcda4c85a897d77ee942025-08-20T02:06:44ZengCroatian Statistical AssociationCroatian Review of Economic, Business and Social Statistics1849-85312459-56162024-01-01102496210.62366/crebss.2024.2.004Trends and drivers of housing affordability in the EU: Insights from panel data analysisJosip Arnerić0Matej Kikerec1Branimir Skoko2University of Zagreb, Faculty of Economics and Business, CroatiaUniversity of Zagreb, Faculty of Economics and Business, CroatiaUniversity of Mostar, Faculty of Economics, Bosnia and HerzegovinaHousing affordability is a crucial issue that affects both individual and societal well-being. Affordable housing ensures that households can meet their basic living needs without experiencing undue financial stress. It influences labor mobility, consumer spending, economic growth, and resilience. Typically, housing affordability is measured by the proportion of household income spent on housing costs, including rent or mortgage payments, utilities, and maintenance. However, no single metric is universally accepted (cost-to-income ratio, residual income approach or subjective measures assessing households' perceptions of their housing affordability). These diverse indicators reflect the complexity of housing affordability and highlight the need for comprehensive analysis using multiple metrics, which is the purpose of this paper. Panel analysis of the socio-economic and demographic demand and supply drivers of housing affordability is essential for developing effective policies that ensure all citizens have access to adequate and affordable housing, as many European Union countries have faced a housing affordability crisis characterized by rising housing prices, housing costs and insufficient housing units supply.https://hrcak.srce.hr/file/466651EU membershousing affordabilityhousing costspanel data
spellingShingle Josip Arnerić
Matej Kikerec
Branimir Skoko
Trends and drivers of housing affordability in the EU: Insights from panel data analysis
Croatian Review of Economic, Business and Social Statistics
EU members
housing affordability
housing costs
panel data
title Trends and drivers of housing affordability in the EU: Insights from panel data analysis
title_full Trends and drivers of housing affordability in the EU: Insights from panel data analysis
title_fullStr Trends and drivers of housing affordability in the EU: Insights from panel data analysis
title_full_unstemmed Trends and drivers of housing affordability in the EU: Insights from panel data analysis
title_short Trends and drivers of housing affordability in the EU: Insights from panel data analysis
title_sort trends and drivers of housing affordability in the eu insights from panel data analysis
topic EU members
housing affordability
housing costs
panel data
url https://hrcak.srce.hr/file/466651
work_keys_str_mv AT josiparneric trendsanddriversofhousingaffordabilityintheeuinsightsfrompaneldataanalysis
AT matejkikerec trendsanddriversofhousingaffordabilityintheeuinsightsfrompaneldataanalysis
AT branimirskoko trendsanddriversofhousingaffordabilityintheeuinsightsfrompaneldataanalysis