Editor's Choice
The source of the data is the Central Statistical Office, The European Union Statistics on Income and Living Conditions (EU-SILC). The Central Statistical Office is not liable for the data and conclusions presented in the publication.
  • we compared housing cost stress among mortgagers and market tenants
  • following Wladron’s (2016) methodology we develop and apply a housing cost stress indicator
  • the results suggest that in Poland, almost one in two mortgage debtors has difficulty meeting housing costs, but the scale and severity of problems is much greater among market tenants
  • the results suggest also that the problems particularly affect single households, people without higher education and those with lower incomes, and have a negative impact on their quality of life
The economic problems of mortgage takers, especially in light of the global financial crisis, is a very important issue both from the point of view of housing policy and the stability of the banking sector. The analysis of the situation of mortgagors is usually limited to determining the percentage of defaulted mortgages. We compared the revealed mortgage repayment problems among Poles (arrears) with the unrevealed ones (such as high housing cost burden, inability to bear unexpected expenses), which we defined as housing cost stress. Next, we compared it with that of tenants at market rates. We found that in Poland, although we observe only a small percentage of mortgagors who are in arrears with their housing costs (about 3%), a large proportion of borrowers (about half of them) is in a difficult financial situation. At the same time, we noticed that their situation is still better than that of market rent tenants, because only one in five renters did not experience problems with covering housing costs. Among tenants, singles were much more likely to suffer from housing cost stress.
We would like to thank two anonymous reviewers for comments which helped to improve our paper.
This research was funded by Polish National Science Centre (NCN) Grant 2018/31/N/HS4/02333.
Journals System - logo
Scroll to top