Go to contents
Go to main menu
Go to engine search
top-cross links

Household main residence affordability ratio

Previous Next

Definition

The affordability ratio is equal to the ratio between a household's expenditure on housing and its income. Expenditure on housing can include charges (simple or total financial charge) or not. The affordability ratio is called "net" if the housing allowance that the household receives is deducted from the expenditure on housing, and "gross" if it is not. This indicator serves to measure the weight of expenditure related to housing occupancy on the household budget and the "solvency enhancing" power of benefits.

Note

Income includes revenue from salaried or non-salaried professional activity, replacement income (sick pay and unemployment compensation), retirement and early-retirement pensions, welfare and family benefit and income from financial assets.