Riassunto analitico
This thesis investigates the intricate relationship between housing affordability and income distribution within the context of Italy, extending the analysis to European countries and the United States. The literature review establishes a foundation in existing theories, with a focus on affordability metrics such as price-to-income ratios, rental affordability indices, and the housing cost burden. It also explores income distribution theories, the 30-percent income standard, and social housing policies in Europe, the USA, and Italy.
The methodology section outlines a mixed-method approach, combining econometric modeling with descriptive statistics for a comprehensive data analysis. It examines the effects of income inequality on housing affordability for the years 2000-2020 for Homeowners and Renters at the different levels of income distribution and by demographic characteristics in Italy. This study uses data from the microdata distribution from the “Bank of Italy, Survey on the balance sheets of Italian families”. Data includes 20 recent sample years, with a total of 74232 observations of Italian households with individual characteristics.
The thesis also explores the efficacy of policy interventions, examining Italy's shift towards private sector involvement in social housing through government incentives and public/private partnerships. Despite such efforts, the demand for affordable housing services continues to outstrip supply, indicating a need for innovative approaches and a reevaluation of barriers to sustainable housing.
With reference to the research reviewed and the findings of the empirical model in this study, income inequality plays a crucial role in affecting housing affordability by raising the proportion of income spent on housing (both in terms of house price to income ratio and rent price to income ratio). This impact is particularly strong for households with the lowest income, and it diminishes as one moves up the income ladder.
These findings and recommendations underscore the urgency for policymakers to prioritize housing affordability as a means to foster economic and social inclusion, addressing the challenges posed by current and emergent economic conditions.
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Abstract
This thesis investigates the intricate relationship between housing affordability and income distribution within the context of Italy, extending the analysis to European countries and the United States. The literature review establishes a foundation in existing theories, with a focus on affordability metrics such as price-to-income ratios, rental affordability indices, and the housing cost burden. It also explores income distribution theories, the 30-percent income standard, and social housing policies in Europe, the USA, and Italy.
The methodology section outlines a mixed-method approach, combining econometric modeling with descriptive statistics for a comprehensive data analysis. It examines the effects of income inequality on housing affordability for the years 2000-2020 for Homeowners and Renters at the different levels of income distribution and by demographic characteristics in Italy. This study uses data from the microdata distribution from the “Bank of Italy, Survey on the balance sheets of Italian families”. Data includes 20 recent sample years, with a total of 74232 observations of Italian households with individual characteristics.
The thesis also explores the efficacy of policy interventions, examining Italy's shift towards private sector involvement in social housing through government incentives and public/private partnerships. Despite such efforts, the demand for affordable housing services continues to outstrip supply, indicating a need for innovative approaches and a reevaluation of barriers to sustainable housing.
With reference to the research reviewed and the findings of the empirical model in this study, income inequality plays a crucial role in affecting housing affordability by raising the proportion of income spent on housing (both in terms of house price to income ratio and rent price to income ratio). This impact is particularly strong for households with the lowest income, and it diminishes as one moves up the income ladder.
These findings and recommendations underscore the urgency for policymakers to prioritize housing affordability as a means to foster economic and social inclusion, addressing the challenges posed by current and emergent economic conditions.
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