Since the early 1990s, the housing affordability issue has been the main concern of the majority of the urban sector in Aden . The urban sector before unification were benefited from the welfare housing system and paid only nominal rents . They were unaccustomed to home purchase . After unification in 1990 . however , the government decided to terminate the previous welfare housing allocation system . Housing supply , therefore was dominated by the private sector . The urban sector was forced to enter the market for housing service provision .
There is a changing housing price-to-income ratio ( PIR ) since 1990 . The rapid increase of house prices has eroded the capability for homeownership . As a result , affordable private housing have experienced higher demand pressure . Without additional residential supply , demand will pull the price up and , therefore , reduce the amount of affordable accommodation .
This paper will discuss :
The current housing situation regarding housing policy evolution in Aden .
Housing affordability definition and housing affordability barriers by reference to current literature.
A model of housing affordability will be set to examine the affordability of housing schemes provided by private housing developers
In this paper , it is not attempted to present a prescription for problem remedy .
Nonetheless, identification and developing under standing of the affordable informing policy and practice