Analysis of factors affecting the level of housing affordability in the Republic of Kazakhstan

Abstract

Currently, the availability and provision of housing for citizens of the country are becoming one of the priority issues for Kazakhstan. With the instability of the economic situation, there is a need to ensure the effective implementation of state actions to provide citizens with affordable housing. The purpose of the study is to analyze the state of housing market and identify factors affecting the level of its availability. In assessing the current state of Kazakhstan's affordable housing market, the following problems were identified: non-compliance with the UN standard and imperfection of the construction materials market, which showed the immaturity of this market and sensitivity to new changes and needs further development. In assessing the development of the Kazakhstan’s housing market, the mathematical model showed that the factor most affecting the price of housing is the average monthly income of households and it was found that an increase in average household wages by 1 thousand tenge will lead to an increase in housing prices by an average of 984 tenge, indicates the need to increase the volume of supply compared to the support of demand in this market. It was found that in the studied conditions 96.94% of the total variability of Y is explained by a change in X factors. The research methodology includes an analysis of factors affecting the price, supply and demand in the housing market, an assessment of HPI indicators showing how affordable housing is for citizens, and a qualitative indicator – the housing supply coefficient.