Inequality in housing affordability: Measurement and estimation

Danny Ben-Shahar, Jacob Warszawski

Research output: Contribution to journalArticlepeer-review

Abstract

This research proposes and examines a new measure for assessing the state of housing affordability inequality. We employ a large micro-level data set by which we estimate and evaluate the time-varying housing affordability inequality in Israel over the period 1992–2011. Results show that our developed housing affordability inequality Gini coefficient has considerably increased in the past decade. Moreover, controlling for changes in net income inequality and macroeconomic conditions, housing affordability inequality is found to positively correlate with average housing prices (computed in net income terms). Outcomes are robust to the alternative Atkinson inequality index. Furthermore, our method allows for an examination of segmentation in housing affordability. We find that segmentation particularly prevails across household head’s gender, family status, working status, the number of income providers in the household and household geographical residence. Research outcomes may direct policymakers in designing policies aiming to reduce inequality and segmentation in housing affordability.

Original languageEnglish
Pages (from-to)1178-1202
Number of pages25
JournalUrban Studies
Volume53
Issue number6
DOIs
StatePublished - May 2015

Keywords

  • Atkinson
  • Gini
  • housing affordability
  • inequality
  • measurement

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