Housing Affordability Index Calculation Integrating Income Inequality in Turkey
Empirical Economics Letters, Vol. 10, No. 4, pp. 359-367, April 2011
9 Pages Posted: 6 Feb 2012 Last revised: 28 May 2016
Date Written: February 1, 2011
This paper is the first attempt that computes Housing Affordability Index (HAI) for an emerging country’s housing market. The calculation is based on a method that takes into account the regional and income differences through putting income distribution and house price distribution simultaneously in the model. We use data for the biggest seven cities of Turkey for the time period of June 2007-December 2009. Results indicate that housing is still unaffordable for households with average incomes in Turkey.
Keywords: Housing, Income Distribution, Turkey
JEL Classification: R10, R31, R21
Suggested Citation: Suggested Citation