Page 137 - U4SSC KPIs Verification Manual - A guide for verifiers
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Dimension Society and Culture
Sub-Dimension Safety, Housing and Social Inclusion
Category Housing
KPI Name Housing Expenditure
KPI No. SC: SH: HO: 2A Type: Advanced Type: Structural
Definition / Percentage expenditure of income for housing
Description
Rationale / Housing expenditure includes rent, mortgage, utility services, maintenance, energy
Interpretation / efficiency repairs, and other repairs.
Benchmarking
Housing costs are critical determinants of the living conditions of individuals and
households. Concerns about housing affordability are important, especially when
there is a sharp rise in home prices, rents and energy prices. Housing is one of the
largest components of household expenditures and assets. As a consequence,
higher housing prices can strain the budget of those households that do not own
their main residence and also increase households' wealth and financial well-being
for those that do.
Presenting housing expenditure shows how much income goes to housing services
and provides a means to compare such expenditures over time and between
countries. (OECD)
A declining trend and lower values are considered positive.
Source(s) NOTE – OECD. Housing. Retrieved from <http:// www .oecdbetterlifeindex .org/
topics/ housing/ >
Methodology Calculate as:
Numerator: Expenditure on Housing (USD).
Denominator: Total household income (USD).
Multiply by 100.
Unit Percentage
Data Sources Data can be obtained through national statistics offices.
/ Relevant NOTE – National data available for certain countries. Retrieved from <https:// stats
Databases
.oecd .org/ >
SDG Reference(s) SDG Target: 11.1: By 2030, ensure access for all to adequate, safe and affordable
housing and basic services and upgrade slums.
Verification Check household income for consistency.
Guidance
Check that household income and not individual income is used.
Ensure currency is updated on data collection template.
DATA VALUES:
In the OECD, households on average spend around 20 per cent of their gross
adjusted disposable income on keeping a roof over their heads. The level of
housing costs in household budgets varies from 26 per cent in New Zealand and
the United Kingdom to 15 per cent in the Republic of Korea.
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