A model for inclusive, pro-poor urbanization? The credibility of informal, affordable “single-family” homes in China

Abstract

Internationally, there is considerable debate on the desired institutional form of informal housing, i.e. whether it needs to be formalized, prohibited or left informal. This debate is driven by demands for better functioning markets, urban planning, and sustainable development. Contrarily, we argue that the endogenous emergence of informal, untitled housing in China (known as Small Property Rights Housing or SPRH) may constitute a successful, albeit unintentional example of inclusive, pro-poor urbanization. To substantiate the argument, we examine how the property rights of SPRH function. In so doing, we draw on the “credibility thesis” and its underlying theory. This study is based on qualitative and quantitative fieldwork conducted in medium and large-sized cities distributed over North, Middle and South China. Despite lacking formal title, SPRH enjoys significant credibility ascertained through: 1) investment; 2) access to credit; and 3) the perceived likelihood of eviction. Noteworthy, most respondents (93 %; n=291) deem themselves owners, with the rights to inhabit (98 %), rent out (87 %), and sell (58 %). Lastly, opposed to the notion that informal housing equals low-quality, disordered slum housing, SPRH functions as affordable, single-family homes, consisting of professionally-built apartment buildings with multiple-room units averaging over 80 m2.