Job-Accessibility-Based Housing Affordability Index: An Application in Beijing

Both theoretical and empirical researches support the argument that job accessibility should be built into housing affordability evaluation. We use a new information tool, which is called Job-Accessibility-Based Housing Affordability Index, to quantify the impact of commuting cost on the affordability of housing decisions in Beijing. This new index calculates the true affordability of a home based on its market value and the transportation cost incurred by its location. Using the data of zone-level household incomes, housing costs and commuting costs of 64 residential zones in Beijing, we calculate two sets of this new affordability index, for car drivers (high-income group) and other commuters (low-income group), respectively. We also present the spatial variations of the indices for the two population groups and examine the underlying forces. Our empirical findings can help households assess which neighbourhoods are most affordable when considering housing and transportation costs together, and it can also assist policymakers in determining where resources should be focused to enhance affordability.