Residential Mortgage Affordability: Evidence from Poland

Konrad Zelazowski, Alina Jdrzejczak, Anna Miklaszewska, Katarzyna Olbinska, Dorota Pekasiewicz and Magdalena Zaczna

ERES from European Real Estate Society (ERES)

Abstract: The mortgage market in majority of developed countries is the foundation of an effective housing finance system. For many households, an available mortgage loan is the only option to achieve housing independence, and it also enables more effective adjustment of the scope and quality of housing services to their needs and expectations. The developed mortgage market also favors increased transaction activity in the housing market, which is particularly important in improving its efficiency and optimal allocation of capital. In the long term, a stable inflow of credit capital stimulates construction investment and has a positive impact on the housing stock.The Polish banking sector has been witnessing the dynamic growth of mortgage market for many years. Despite this, we are still not able to fully answer the basic questions: How many Poles can afford a housing loan? How sensitive is the demand for mortgages to changes in interest rates, real estate prices or the financial capabilities of potential borrowers?The aim of the paper is to measure the affordability of mortgage loans for Poles, taking into account their financial situation and economic reality at the end of 2022. Using CSO microdata, we estimated the percentage of households that, due to their financial constraints, would not be able to take out a mortgage loan to purchase an average-sized dwelling.

Keywords: Housing Finance; mortgage affordability; mortgage market; Polish housing market (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
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