housing affordability in the czech republic and finland

108 Pages·2016·1.24 MB·English

by  Dominika Čižnárová

University of Tampere
School of Management
MGE-Master' Degree Programme in Public Economics and Public Finance

HOUSING AFFORDABILITY
IN THE CZECH REPUBLIC AND FINLAND
Dostupnost bydlení v České republice a Finsku

Master´s thesis

Thesis supervisor: Author:
Prof. Hannu Laurila Ing. Dominika Čižnárová
doc. Mgr. Jiří Špalek, Ph.D.
Brno, 2016

Jméno a příjmení autora: Ing. Dominika Čižnárová
Název diplomové práce: Dostupnost bydlení v České republice a Finsku
Název práce v angličtině: Housing Affordability in the Czech Republic and
Finland
Katedra: veřejné ekonomie
Vedoucí diplomové práce: doc. Mgr. Jiří Špalek, Ph.D.
Rok obhajoby: 2016

Anotace
Diplomová práca sa venuje problematike dostupnosti bývania v Českej republike a Fínsku
s cieľom identifikovať koľko domácností je nadmerne zaťažených nákladmi na bývanie.
V úvahu boli vzaté prostredie politiky bývania a rozdielne prístupy k problematike
dostupnosti bývania v závislosti na právnom dôvode užívania bývania domácnosťou.
Na základe výsledkov bolo zistené, že nájomné bývanie je pre fínske domácnosti oveľa
dostupnejšie v porovnaní s Českou republikou, kde významná časť domácností čelí
zhoršujúcej sa dostupnosti bývania.
Annotation
This thesis deals with the housing affordability measurements in the Czech Republic
and Finland in order to identify how many households are burdened with high housing costs.
The environment of housing policy is taken into account and there are different housing
affordability approaches depending on the tenure status of the households. This thesis
presents long-term results in order to see the development of housing affordability.
According to the findings, Finnish rental housing is far more affordable than
in the Czech Republic where a significant percentage of rental households are facing
worsening housing affordability.
Klíčová slova
Dostupnosť bývania, náklady na bývanie, disponibilný príjem, príspevok na bývanie, politika
bývania, regulácia nájomného, EU-SILC, probit model, finančné faktory
Keywords
Housing affordability, housing costs, disposable income, housing allowances, housing policy,
rent regulation, EU-SILC, probit model, financial factors
Declaration
I hereby declare that I have developed and written this thesis independently, using only the
sources listed, in accordance with Czech legal regulations and the internal regulations of the
Masaryk University and the Faculty of Economics and Administration.
In Brno, May 2016

Author’s signature

Acknowledgements
I would like to express my gratitude to doc. Mgr. Jiří Špalek, Ph.D. and Professor Hannu
Laurila, my thesis supervisors, for professional guidance and useful critiques of my thesis and
to Ing. Robert Jahoda, PhD. and Ms. Terhi Nieminen for providing me with the opportunity
to study a double degree master program at the University of Tampere and their support
during my studies. Furthermore, I would like to thank my family for emotional support.
TABLE OF CONTENTS
INTRODUCTION....................................................................................................... 13
1 HOUSING IN THE CZECH REPUBLIC AND FINLAND ........................... 17
1.1 HOUSING IN THE CZECH REPUBLIC ............................................................................... 17
1.1.1 Housing policy and competency ........................................................................... 17
1.1.2 Tenure structure .................................................................................................... 24
1.1.3 Social Housing ...................................................................................................... 28
1.2 HOUSING IN FINLAND ................................................................................................... 32
1.2.1 Housing policy and competency ........................................................................... 32
1.2.2 Tenure structure .................................................................................................... 32
1.2.3 Social housing ....................................................................................................... 34
2 IMPACT OF FINANCIAL FACTORS ON TENURE CHOICE .................. 41
2.1 PROBIT MODEL ............................................................................................................. 41
2.1.1 Variables ............................................................................................................... 42
2.2 RESULTS FOR CZECH REPUBLIC ................................................................................... 44
2.3 RESULTS FOR FINLAND ................................................................................................. 47
2.4 DISCUSSION .................................................................................................................. 49
3 HOUSING AFFORDABILITY IN THE CZECH REPUBLIC AND
FINLAND………………………………………………………………………51
3.1 THE CONCEPT OF HOUSING AFFORDABILITY ................................................................ 52
3.1.1 Applying Economic Concept of Affordability ....................................................... 53
3.1.2 Affordability measures .......................................................................................... 55
3.1.3 Advantages and Disadvantages of Selected Measures ......................................... 60