The Squeezed Middle: Housing Affordability Challenges

Nazli Dongez, Yýldýz Technical University Graduate School of Science and Engineering, Architectural Department, Building Ph.D Program, Istanbul, TurkiyeFollow
Almula Koksal, Yýldýz Technical University Architectural Faculty, Architectural Department, Istanbul, TurkiyeFollow

Abstract

Neoliberalism has deepened economic inequality, which is now spreading globally. Even though this economic inequality affects mostly lower-income households, international reports show that inequality has spread to the middle-income group. The decline in the purchasing power of the middle-income group has led to the issue of housing affordability, referred to as the squeezed middle-income group. Despite the global scope of this problem, only a limited number of academic studies have conducted a comprehensive assessment. Therefore, this study aims to analyze the problem of housing affordability for the middle-income group. The study employed the systematic literature review method. The Web of Science and Scopus databases were used in the research, and the outputs were analyzed by VOSviewer. The VOSviewer outputs were synthesized for developed and developing countries regarding purchasing power, housing price index, and housing policy keywords. The housing price-to-income ratio (PIR) was combined to evaluate the affordability of housing for the middle-income group. As a result, it is determined that mortgages and tax deductions have mostly been used to address the problem of access to housing for the middle-income group in developed and developing countries. Another finding of the study is that, despite existing financial incentives, the housing price index is increasing while purchasing power is rapidly decreasing. Furthermore, rising construction costs globally, which impact mainly housing prices, also present challenges for developers. This condition underscores the necessity of developing a new housing financing and production model to effectively address the housing accessibility challenges faced by the middle-income group.

Keywords

Housing affordability, Middle-income group, Housing prices, Housing price index, Housing policies, Access to housing, Mortgage

Recommended Citation

Dongez, Nazli and Koksal, Almula (2026) "The Squeezed Middle: Housing Affordability Challenges," HBRC Journal: Vol. 22: Iss. 1, Article 11.
Available at: https://journal.hbrc.edu.eg/journal/vol22/iss1/11