Measuring housing affordability: Looking beyond the median

Journal of Housing Economics

Volumn 18, Issue 2, 2009, Pages 115-125

  Gan, Quan ^a   Hill, Robert J ^b,c  

^a UNIVERSITY OF SYDNEY   (Australia)

^b UNIVERSITY OF GRAZ   (Austria)

^c UNIVERSITY OF NEW SOUTH WALES   (Australia)

Author keywords

Affordability at risk; Affordable limit; Housing affordability; Housing boom; Mortgage market; Price to income ratio; Skewness

Indexed keywords

EID: 67349139682     PISSN: 10511377     EISSN: 10960791     Source Type: Journal    
DOI: 10.1016/j.jhe.2009.04.003     Document Type: Article

References (20)

1. Aitchison J., and Brown J.A.C. The Lognormal Distribution (1957), Cambridge University Press, Cambridge
2. Bourassa S.C. Measuring the Affordability of Homeownership. Urban Studies 33 10 (1996) 1867-1877
3. Brischetto, A., Rosewall, T. 2007. Loan Approvals, Repayments and Housing Credit Growth. Reserve Bank Bulletin, July, 1-7.
4. Chomsisengphet S., and Pennington-Cross A. The Evolution of the Subprime Mortgage Market. Federal Reserve Bank of St. Louis Review 88 1 (2006) 31-56
5. Demographia International (2008), 4th Annual Demographia International Housing Affordability Survey, downloadable at ≪http://www.demographia.com/dhi-ix2005q3.pdf≫.
6. Federal Reserve Bank of San Francisco (2008), Private Mortgage Insurance, downloadable at ≪http://www.frbsf.org/publications/consumer/privatemortgage.pdf≫.
7. Glaeser E., and Gyourko J. The Impact of Zoning on Housing Affordability. Federal Reserve Bank of New York Economic Policy Review 9 2 (2003) 21-39
8. Hicks, J.R., 1946. Value and Capital, Second Edition. Oxford University Press, Oxford (First Edition, 1939).
9. Hulchanski J.D. The Concept of Housing Affordability: Six Contemporary Uses of the Housing Expenditure-to-Income Ratio. Housing Studies 10 4 (1995) 471-491
10. Kutty N.K. A New Measure of Housing Affordability: Estimates and Analytical Results. Housing Policy Debate 16 1 (2005) 113-142
11. Liu B., and Skully M.T. The Determinants of Mortgage Yield Spread Differentials: Securitization. Journal of Multinational Financial Management 15 4-5 (2005) 314-333
12. Majumder A., and Chakravarty S.R. Distribution of Personal Income: Development of a new Model and its Application to U.S. Income Data. Journal of Applied Econometrics 5 2 (1990) 189-196
13. Manganelli, S., Engle, R.F. 2001. Value at Risk Models in Finance. Working Paper 75, European Central Bank, Frankfurt.
14. McCarthy, J., Peach, R.W. 2004. Are Home Prices the Next 'Bubble'? Federal Reserve Bank of New York Economic Policy Review, Dec., 1-17.
15. OECD 2004. "Housing Markets, Wealth and the Business Cycle," OECD Economic Outlook 75, Chapter 4, 127-147. OECD Publications: Paris, France.
16. Piazzesi M., Schneider M., and Tuzel S. Housing, Consumption and Asset Pricing. Journal of Financial Economics 83 (2007) 531-569
17. Quigley J.M., and Raphael S. Is Housing Unaffordable? Why Isn't It More Affordable. Journal of Economic Perspectives 18 1 (2004) 191-214
18. Robertson, R. 2006. Thinking About the Big Drop in Australian Housing Affordability, Discussion Draft, Macquarie Research Strategy, Macquarie Bank.
19. Stone M. What is Housing Affordability? The Case for the Residual Income Approach. Housing Policy Debate 17 1 (2006) 151-184
20. Vigdor J.L. Liquidity Constraints and Housing Prices: Theory and Evidence from the VA Mortgage Program. Journal of Public Economics 90 (2006) 1579-1600