A Study on Current Trends of Income and Its Impact on Affordability in Multi-Ownership Housing in Demra, Dhaka

The concepts and definitions of housing affordability vary according to the economic and social contexts of specific countries. However, irrespective of the context, housing affordability is influenced not only by the market conditions or individuals income source, but also by the prevailing policy environment, among other social and economic factors. Providing housing for the city dwellers is very significant for ensuring sustainable urban development. High growth of population in Dhaka city is creating extra pressure on land and making an adverse impact on housing affordability. The high rental price of housing in Dhaka city makes it impossible for the people, especially middle income group to afford housing. The price-to-income ratio in Dhaka is one of the highest positions among the major South Asian cities. The middle-income group struggles to maintain a minimum standard of living and largely relies on rental housing. However, house rents are also unaffordable to them. The study intends to investigate the housing affordability and income trends of the middle-income groups in Dhaka and aims to identify the affordable limit to own a house with consideration of current pay scale (8th National pay scale). A qualitative approach is adopted for this research. Primary and secondary data were collected using various approaches such as document analysis, questionnaire survey and interviews.