Housing affordability reflects a complex interplay of factors, - economic, environmental and social. Housing affordability relates to the ability of a household to pay for the costs of their housing. These costs can be for rents, mortgages, and services.  A household’s ability to pay these costs may be influenced by:

• Employment and income,
• General cost of living expenses,
• Land values,
• Housing standards and preferences, and
• Market conditions. 

Experts consider that housing is ‘affordable’ when housing costs do not exceed a threshold of 30% of household income. When this threshold is exceeded, a household is described as being in housing ‘stress’.  Low-income renters are the most vulnerable to housing stress. If rents increase, some low income households might not be able to afford the higher costs. These families can choose to move to where housing costs are lower. Such a move is often further away from services, employment opportunities, and support networks.

Provision of ‘affordable housing’ means that housing is available for all households at less than the 30% threshold of income. Affordable housing can be made available through government schemes (social housing) or the private rental market.

A relatively low supply of housing when demand is high will place upward pressure on the costs of housing. In these cases, government schemes can provide some form of affordable housing. Such support is designed to keep low-income renters in their communities.

Housing affordability is important to monitor as it not only impacts individual households, it has wider social and economic impacts. For example, particularly for smaller rural communities, families who move frequently to avoid rising rents can negatively affect social cohesion.