The Potential Unaffordability of Rental Housing after Rent Deregulation in a Regional Perspective

The article deals with an analysis of regional differences in rental housing affordability following rent deregulation in the Czech Republic. The objective is to identify the types of households potentially at risk of being unable to afford housing, to map the development of potential housing (un)affordability since 2000, and to trace the development of regional differences in the percentage of at-risk households in the Czech Republic. Owing to the absence of useful aggregate data on incomes and expenditures for different household types in the regions of the Czech Republic, the authors created their own simulation methodology for measuring housing affordability, which uses available regional wage statistics and data on market rents. The results indicate that the general risk of being unable to afford rental housing and regional differences in housing affordability are both decreasing, but there is still a relatively large group of households that under current wage conditions for paying social benefits would be unable to afford to pay market rents.