Measuring Rental Feasibility: A Multidimensional Alternative to HRAI

Abstract The aim of this study is to present and empirically validate the Rental Feasibility Index (RFI), a multidimensional measure of the real capacity to rent a dwelling from the perspective of households. The index integrates four components: affordability, availability of rental offers, upfront costs, and financial stability. The study also provides a critical extension of the commonly used Housing Rental Affordability Index (HRAI), highlighting the need to incorporate additional dimensions of rental feasibility. The analysis uses monthly data for the Polish rental market from 2021 to 2026, enabling an assessment of the dynamics of the RFI, its components, and their interrelationships. The results show that the RFI effectively captures both short‑term shocks and long‑term trends. In 2022, the index recorded a sharp decline, driven mainly by a collapse in rental offer availability and a deterioration in household financial stability. In the following years, all components gradually recovered, with affordability and upfront costs exerting the strongest influence on the RFI. A comparison with the traditional HRAI revealed a moderate relationship, confirming that the two indicators capture different aspects of rental market conditions. Despite certain limitations, the RFI offers a useful tool for analysing the rental market and supporting housing policy.