Housing affordability is commonly defined in term of the possibility for households of purchasing or renting an appropriate house using a feasible portion of income. The aim of this paper is to analyse the impact of region and degree of urbanization of residential areas on housing affordability. To address this objective we estimate a three levels multilevel model: individual, household, and region using IT-EUSILC2004 data set on Italian households. Results of the analysis show that, depending on the level of income perceived, both region and degree of urbanization influence housing affordability of households.
Keywords: Home affordability, urbanization and multilevel analysis.
Jel Code: D1, D3.