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RESEARCH PRODUCT

Housing Affordability in Metropolitan Areas. The Application of a Combination of the Ratio Income and Residual Income Approaches to Two Case Studies in Sicily, Italy

Grazia Napoli

subject

Urban regionEconomic growthIndex (economics)0211 other engineering and technologies0507 social and economic geographycombined income approach02 engineering and technologyratio income approachAgricultural economicsresidual income approachlcsh:TH1-9745ArchitectureEconomicsCity centreCivil and Structural Engineeringthreshold-incomehousing affordability05 social sciences021107 urban & regional planningBuilding and Constructionhousing affordability; ratio income approach; residual income approach; threshold-income; combined income approach; real estate market; metropolitan areaEuropean regionMetropolitan areametropolitan areareal estate marketIncome levelSettore ICAR/22 - Estimo050703 geographyPassive incomelcsh:Building construction

description

Housing affordability problems have become more serious over the course of the last few decades and are now also affecting the middle-class, despite the fall in prices on the housing market. This study proposes a methodology to assess threshold-income as an index for measuring housing affordability by applying a combination of the ratio income and residual income approaches. The methodology is applied to two particular areas of Sicily in Italy as case studies consisting of medium-size metropolitan areas located in a less developed European region. The areas have been chosen on the basis of their different territorial structure: a polarized area that comprises a high-density city centre and a polynuclear urban region. The results are diversified for income level, as well as for town and urban zone, and allow us to compare the housing affordability problems between towns belonging to the same metropolitan area.

yearjournalcountryeditionlanguage
2017-10-26Buildings
10.3390/buildings7040095https://www.mdpi.com/2075-5309/7/4/95