Housing Markets and Residential Location in Cities
This chapter spells out how land and housing markets contribute to where households either choose or are constrained to live in cities. But households and the local communities they form can be very diverse in their demographic and social make-up (Chapter 7). These differences have a significant bearing on the sources and amount of income the household can afford to spend on housing. In simple terms, a household’s ‘demand function for housing’ is strongly influenced by the position of wage earners in the labour market (Chapter 5). This, more than anything else, governs housing access and affordability.