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The macroeconomy is a key factor in housing affordability
Affordable housing is one of the most widespread social aims of the housing policies in Europe.
Although several definitions of the term exist in the research and academic communities, ‘affordable housing’ simply means that the ratio of housing cost to household income is not more than an arbitrary ceiling of 30% to 35%.
This ratio is influenced by two main factors: the local housing market (including rent, mortgage interest rates and house prices), and the local labour