First time I have heard of house affordability being tied to GDP. To me it's always been the size of the crust you earn that dictates if you can afford anything.
But Fitch expects affordability to get worse as prices further outstrip income growth.
Maybe prices will continue to rise, but it might mean selling a large part of the country.
Linneman and Megbolugbe (1992) stated that “talk of housing affordability is plentiful, but a precise definition of housing affordability is at best ambiguous” The most general measure of housing affordability is simply the relationship between housing costs and income.
