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Affordability

Affordability refers to the degree to which an individual or group can purchase or access goods and services without financial strain. It often assesses the relationship between income levels and the costs of essential items, such as housing, healthcare, education, and other basic necessities. Affordability indicates whether these costs are manageable within a person’s or household’s budget, generally considering income levels, price changes, and spending habits. When items or services are described as “affordable,” they imply that they are reasonably priced and accessible to the target demographic, thereby promoting social equity and economic sustainability. High affordability can lead to improved living standards, while low affordability can lead to financial stress, reduced quality of life, and socioeconomic disparities. In various contexts, such as real estate or health care, affordability may be quantitatively analyzed through metrics like the affordability index, which compares median income against the costs of specific housing or services.