The residual income approach to housing affordability: the theory and the practice

Download publication:  The residual income approach to housing affordability: the theory and the practice (PDF 925.2 KB)
Author(s): Michael Stone; Terry Burke; Liss Ralston
Description: "This report seeks to provide a greater understanding of the residual income approach to measuring housing affordability. Part A provides an overview, using existing literature, of the various semantic, substantive and definitional issues around the notion of affordability, leading to an argument in support of the soundness of the residual income approach. Part B is methodological; it shows for various household types and income ranges, both for home purchase and rental, how the residual income method can be operationalised and its potential policy applications."
Citation: Stone, M., Burke, T. and Ralston, L. (2011) The residual income approach to housing affordability: the theory and the practice, AHURI Positioning Paper No. 139, Australian Housing and Urban Research Institute Limited, Melbourne, https://www.ahuri.edu.au/research/position-papers/139.
Date published: 05 May 2011
Publication type: Positioning Paper 139
Project title: Residual incomes in Australia: analysis and implications (Project number: 50597)
Project reports: The residual income method: a new lens on housing affordability and market behaviour (Final Report)
What does the residual income method tell us about housing affordability in Australia? (Research and Policy Bulletin)
Published by: Australian Housing and Urban Research Institute Limited
ISSN: 1834-9250
ISBN: 978-1-921610-71-4
Assistance with downloading PDF reports