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Housing Affordability and Economic Productivity

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Publication type: General

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Overview

The new government has placed economic growth as its number one priority. The London Partnership Board identified London’s housing crisis as a key issue for Londoners, which is also having a significant impact on the city’s economic growth and productivity.

This study estimates the relationship between housing affordability and productivity. Using data from all local authorities in the Greater Southeast Region of England between 2002 and 2021 and by applying econometric methods, the study finds that declining housing affordability has had a significant negative effect on London’s economic productivity.

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Housing Affordability and Economic Productivity