Affordable Housing

Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.

1. Affordable Housing Shoriful Islam

2. Housing The Constitution of Bangladesh recognizes Housing as one of the three basic primary needs of man and women, is as important as food and clothing and Bangladesh National Housing policy, 1993 accepted the fact. Housing provides shelter , safety and a sense of belonging to the owner. An adequate shelter must have security of tenure, protection from elements of nature, utility services such as safe drinking water, sanitation and other essential services; it needs to be affordable and accessible.

3. What is AFFORDABLE HOUSING

4. Affordable housing is more than a structure. Housing is affordable if a household can live in it without sacrificing food, health care, and other essentials. "Housing cost-burdened" - household earning less than the median county income and paying more than 30% of their income on housing. (SCT and national standard) Thalmann (2003) mentioned that “Housing is not affordable for a household if it excessively crowds out other expenditure

5. Affordability measurement Mechanisms Factors Comments Ratio measurement Rent Income Housing expenditure Threshold limit Inadequacies Not included the opportunity cost. Little information about the financial burden of tenants. The non-housing expenditures of tenants are ignored. The quality and size of the housing unit is also ignored. Advantages Easy to calculate and understand. Easy for implementation as policy guideline. Quality adjust measurement Rent Income Housing expenditure Threshold limit Minimum socially accepted standard housing unit Housing size Inadequacies Not included the opportunity cost. Little information about the financial burden of tenants. The non-housing expenditures of tenants are ignored. Difficult to define socially accepted minimum standard housing unit. Advantages The quality and size of the housing unit is incorporated in the measurement.

6. Affordability measurement Mechanisms Factors Comments Shelter poverty measurement Income Housing expenditure Minimum socially accepted non-housing expenditure Inadequacies Difficult to distinguish between the concept of poverty and the concept of housing affordability. The main focuses on housing income and non-housing consumption rather than housing. Difficult to define official poverty line for measurement. Advantages Easy to sort out households who are in housing need. Residual income measurement Income Housing expenditure Minimum socially accepted non-housing expenditure Over and under consumption of housing. Inadequacies Closely related to poverty concept rather than affordability concept. The main focuses on housing income and non- housing consumption rather than housing. Difficult to define official poverty line for measurement. Advantages Easy to sort out households who are in housing need. The opportunity cost of the households is incorporated in the measurement.