HOUSING AFFORDABILITY AND SOCIAL INJUSTICE.

Rising housing prices amid stagnant household income have adversely af- fected housing affordability and become the focus of public outcry. This paper analyzes the structural factors behind the rise of the housing price to income ratio. It then reviews the effectiveness of credit-control, tax and social-housing policies to contain rising housing prices by raising housing holding cost and low- ering speculative gains. We find that any solution to housing-price containment must take into account the current some 850 thousand vacant houses, and the possible changes in the level and composition of housing demand arising from the rapid aging of the population. [ABSTRACT FROM AUTHOR]