The relationship between socio-demographic factors and housing affordability in Saudi Arabia

Mubarak Faisal Alhajri

International Journal of Housing Markets and Analysis, 2024, vol. 19, issue 2, 377-402

Abstract: PurposeThis study aims to investigate the association between various demographic factors and housing affordability in Saudi Arabia.Design/methodology/approachA questionnaire survey of households was undertaken, and responses were analysed using chi-square analysis and logistic regression.FindingsThe study found that gender and job rank were only significantly related to housing value, but not to housing type, type of tenancy or number of bedrooms. Age, level of income, nationality, household size and job sector had significant associations with housing type, type of tenancy, number of bedrooms and housing value. However, the study did not find a significant relationship between the education level of the head of the household and any housing characteristics. The findings from the logistic regressions indicated that the level of income odds ratio (OR = 25.634), and the value of housing (OR = 0.037) were the two most significant predictors of access to affordable housing, both with levels of significance of p < 0.001.Research limitations/implicationsEven though this study has provided valuable findings and contributions to the literature and policymakers, certain limitations must also be highlighted. First, the study focused only on four housing characteristics: housing type, housing tenancy, number of bedrooms and housing value. It did not consider other housing characteristics, such as housing age and housing conditions, which also affect the affordability of housing. Second, the method adopted for this study has a limitation in terms of its sampling technique, namely, snowball sampling, which relies on each participant to recommend others based on their judgement and recommendation. Third, the sample size for this study was small. As a result, the generalization of these findings to Kingdom of Saudi Arabia (KSA) will be limited.Practical implicationsThe current study’s findings will help decision makers in the housing sector to implement a housing delivery strategy that responds to escalating demand. It also contributes to the emerging body of literature by clarifying the relationships and influence between demographic factors and accessibility to affordable housing. In addition, the findings of this study support KSA’s ambitious Vision 2030, through which the government seeks to increase the rate of homeownership. The implications of the findings of this study also extend to help housing policymakers in similar developing countries where the delivery of affordable housing is a challenge.Originality/valueThe study is relevant because it investigates the relationships of demographic factors and housing affordability in one of the three agglomerations in the country. It can thus provide insight into the increasing demand for housing, which can help the Saudi Government to design and implement a housing delivery strategy and can support KSA’s ambitious Vision 2030, which targets increased homeownership. It can also improve our knowledge on the emergent body of literature on the effect of demographic characteristics on the affordability of housing in the country, and in similar developing countries where the delivery of affordable housing is a challenge.

Keywords: Affordable housing; Housing accessibility; Demographic factors; Housing characteristics; Household; Kingdom of Saudi Arabia; Dammam metropolitan area (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijhmap:ijhma-08-2024-0121

DOI: 10.1108/IJHMA-08-2024-0121

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