We introduce a new measure of housing affordability that adjusts for normative variation in housing consumption. The new measure is computed using extensive micro-data from Israel for the 1998–2015 period. Findings suggest sharp declines in Israel quality- and consumption-adjusted...

User costs of housing are a major part of a household’s expenditure.I empirically investigate the heterogeneous impact of an unanticipatedexpansionary monetary policy on housing markets and householdtenurial decision by exploiting the user cost of housing channel.Drawing on a Swiss household...