Measuring Housing Affordability in Sao Paulo Metropolitan Region

24 Pages Posted: 23 Jan 2015 Last revised: 16 Jul 2015

See all articles by Arthur Acolin

Arthur Acolin

University of Washington - College of Built Environments

Richard K. Green

University of Southern California - Lusk Center for Real Estate

Date Written: December 14, 2015

Abstract

This paper develops a novel measure of affordability for the Sao Paulo metropolitan region that combines housing costs and transportation costs, including opportunity cost associated with commuting time. We also contribute to existing measures of housing affordability in Brazil by imputing housing costs for owners using the owner equivalent rent approach. Our measure enables us to track the evolution of affordability over the period 2007-2013 using PNAD microdata. The results indicate that the number of households spending more than 30 percent of their income on housing or 45 percent or more on housing and transportation costs combined has been increasing rapidly over that period. This measure of affordability can be integrated to a broader measure of housing needs to guide housing policy in addressing housing conditions that have negative effects on individual and social welfare.

Keywords: Housing, affordability, location, housing needs, housing inadequacy

JEL Classification: O18, R21, R31

Suggested Citation

Acolin, Arthur and Green, Richard K., Measuring Housing Affordability in Sao Paulo Metropolitan Region (December 14, 2015). Available at SSRN: https://ssrn.com/abstract=2553488 or http://dx.doi.org/10.2139/ssrn.2553488

Arthur Acolin

University of Washington - College of Built Environments ( email )

224 Gould Hall
Box 355726
Seattle, WA 98195
United States

Richard K. Green (Contact Author)

University of Southern California - Lusk Center for Real Estate ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

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