Concept of housing affordability Affordable housing is a basic right. It includes rental and home purchase opportunities. Other features of affordable housing include it is well built, located close to transport, shops, hospitals and community services, as well as suited to its residents. Housing affordability can be viewed from three different perspectives: The affordability for renters; The affordability for would-be home owners; The affordability for existing homeowners. There are several concept of housing affordability:Description of household expenditure For housing to be affordable, it should cost a proportion of the household income that leaves enough money for basic costs such as food, clothing, healthcare and education.
The target for affordable housing is people wanting to buy or rent a home whose household incomes are described as low to moderate. In South Australia, a low income is up to 80% of the gross annual median household income, and a moderate income household is between 80 and 120% of the gross annual median income.The most widely used measure of housing affordability is that households should pay no more than 30% of their income in mortgage repayments, or 30% (plus Commonwealth Rent Assistance) in rent. Analysis of trends- housing prices The increase in housing prices can be accounted for by factors affecting demand and supply. Demand factors include income and the rate of return on other assets, whereas the prices of land and construction costs are supply factors. When the prices of land and the material use in construction is inflate, the costing will increase then make the housing prices will increase too.By this, household needs to expand more income to pay for housing when the housing price was increase.
Administration of public sector housing subsidies The Government aims to create prosperous, inclusive and sustainable communities. Everyone should have the opportunity of a decent home at a price they can afford, in a place in which they want to live now and in the future, that promotes opportunity and a better quality of life in a secure and attractive environment.To achieve sustainable housing, there is a need to provide community facilities, compact design, pedestrian friendly design, eco-efficient houses etc. Indeed there are many elements that are common in both sustainable and affordable housing.
Therefore, it is possible to make Definition of housing need Housing deprivation can take a variety of forms, of which lack of affordability is only one. Households may live in housing that fails to meet physical standards of decency, in overcrowded conditions, with insecure tenure, or in unsafe or inaccessible locations.While each of these other forms of deprivation is logically distinct from lack of affordability, most households that experience one or more of these other forms of deprivation in reality do so because they cannot afford satisfactory housing and residential environments. If other forms of housing deprivation are largely due to the affordability squeeze, in measuring the extent of affordability problems how should we account for those households that seem not to have an affordability problem (as measured by some standard), yet do experience one or more other forms of housing deprivation?Simply put, if the cost of obtaining satisfactory dwellings and residential environments within the same housing market area exceeds what such households can afford, then they should reasonably be considered to have an affordability problem even though it is not revealed by applying an economic affordability standard. Only if such a household could afford adequate housing—and if such housing is actually available—might they reasonably be considered to be living in inadequate housing by choice.While housing deprivation is complex and can take various forms, standards for most forms of deprivation are fairly well established, and hence the measurement of deprivation and its relationship to affordability is, in principle, reasonably tractable.
Prediction of a household’s ability to pay the rent or mortgage Sadasivam. [email protected] edu. au http://www. urbancentre. utoronto. ca/pdfs/researchassociates/Hulchanski_Concept-H-Affd_H. pdf http://www.
census. gov/prod/2009pubs/h121-09-01. pdf