Editorial: Why affordable housing matters
Over the last two decades, practically every EU country has seen the price of property increase at a faster rate than wages.
One of the undesirable consequences of this phenomenon has been an increase in the number of young people who cannot afford to put their foot on the first rung of the property ladder. High property prices also affect – perhaps even more adversely – lower-income workers who can only afford to rent basic accommodation.
A study by KPMG has found that households on a median income could only take out a mortgage that financed 76 per cent of the median asking price for apartments.
This is shocking news to all who fret about our society’s well-being and are worried about the welfare of future generations. Not everyone has parents or grandparents who can fork out enough money to help them put down a deposit on their first home. However, everyone does have a right to aspire to be a homeowner, irrespective of their financial means or the prosperity of their families.
The reasons behind the shortage of affordable housing vary. In many countries, strict development restrictions, especially in large cities, create a supply bottleneck even if demand is not...