Abstract

In a market-oriented society, housing has become a commodity. One of the effects is a shortage of affordable housing. This chapter contrasts two broad approaches to the creation of (affordable) housing. The first is the conservative notion of a ‘property-owning democracy’. The second is publicly produced affordable housing in combination with tenant protection and rent control. We come down on the side of state-produced affordable housing as a more effective approach. The problem with the property-owning democracy is that it unravels in the implementation phase. By devolving the financing and construction of housing to a large array of actors, each operating according to the profit motive, the end result is a bias in favour of expensive owner-occupied housing and a shortage of secure and affordable rental properties. We conclude that housing does not need to, and should not, be commodified. People should not be forced to make large financial sacrifices that will keep the bank happy and themselves overworked and sleepless for years or even decades to come. Buying a home should not be a requirement for people who want affordable and stable housing.

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