This paper provides an updated account of housing affordability research in top-tier urban and housing related journals. The theme and foci of affordability studies are reviewed based on a literature survey of 112 journal papers over the period 1990 to 2013. Six perspectives are encompassed, namely definition and measurement of affordability, housing poverty, affordable housing, impact of planning and zoning; econometric analysis of housing affordability; and housing policy. In particular, the study reviews the methodological development of, and barrier to, housing affordability measurement. The nature and extent of housing affordability are critically discussed, and weakness of conventional measurement commented. Finally, future research agenda is proposed.

Housing matters. It matters more to people’s lifestyle than other necessities, such as food and clothing. Assessing housing needs typically considers three dimensions: amenity, affordability and overcrowding (Bogdon and Can, 1997). Unlike amenity and overcrowding problems which are more prevalent in less developed economies where there is little land for accommodation, the problem of housing affordability is associated with multi-facet economic, social, political and demographic considerations. Linneman and Megbolugbe (1992) outlined factors in relation to housing affordability issues, including housing prices, household incomes, mortgage rates, instruments and underwritings, real property taxes and insurance, consumer spending and debt, local public finance, rent controls, and housing subsidies. Skaburskis (2004) summarized eight factors that are responsible for housing affordability problems, including “geography, demography, migration/immigration/ethnicity, income recipients, income source, employment and education”. Wang et al. (2010) concluded that family housing wealth and mortgage.