Current economic limits of housing affordability in the Czech and Slovak Republics
Authors: Daniela Spirkova, Petr Stepanek, Julius Golej, Barbora Brestovska
Abstract: The unavailability of housing in the Czech and Slovak Republics is a fundamental problem, which is a consequence of many social, economic, political, and behavioural or historical aspects. The housing affordability deficit has the character of a systemic market failure, which is - paradoxically - linked to the growth of prosperity and resulting from the dual nature of the object (housing) in question - it is both an investment product and a de facto mandatory social need. It is an indicated market failure that justifies state intervention and public support. The housing problem no longer affects only the socially disadvantaged and the middle-income groups. Unfortunately, the deficit of housing affordability has a fatal impact on the competitiveness of cities and regions and its social cohesion and environmental and economic sustainability.
Keywords: housing affordability, economic limits, sustainable development, fragmentation of land ownership, public sector management, social cohesion
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