The Affordability of Housing in the Netherlands: An Increasing Income Gap Between Renting and Owning?

Abstract

Housing became more expensive in the Netherlands between 2002 and 2006, a trend which has been demonstrated using various measures of affordability. The expenditure-to-income ratios calculated for households confirm that the average cost of housing rose for tenants and homeowners, as well as for most income groups generally. This contribution analyses the development of various components of household expenditure which contributed to these higher ratios. One of the most important considerations here is the fact that average household disposable incomes either fell (tenants) or remained stable (homeowners) during the four-year period under review. This leads to the question of whether these increasing income differences between renting and owning can be attributed to the business cycle alone, or whether they are part of a longer-term trend that will eventually result in a rental sector that provides housing for those on lower incomes. The findings suggest that a longer-term or structural widening of the income gap between renting and owning may indeed be taking place.

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

“…The detailed quantification of income gaps and subsidies per household type [40,41] was based on the housing cost of 'adequate' housing but did not take into account the particular urban zone in which the housing is located.…”

Towards a Sustainable Private Rented Sector: The Lessons from Other Countries

“…In that year, the difference between both tenures was 40%, while in 2009 the average income of homeowners was almost double the average income of tenants (Blijie 2010). This means that the overall rented sector is being marginalized in terms of incomes (Haffner & Boumeester 2010).…”

Theoretical Framework of Fair Distribution of Affordable Housing in China

“…In view of the different historic and national context, meaning and usage of the concept like affordable housing is subject to distinctive perceptions.The term 'affordability'is concerned with the annual price or a rent paid for consumption upon housing (Haffner & Boumeester, 2010). Gabriel et al (2005) defines affordable housing as lower cost housing than prevailing market price to meet up with the minimum affordability requirements of low-income people and the affordability can be measured based on various indicators.…”