The emergence of large-scale housing programs: Beyond a public finance perspective

Abstract

Over the past decade there has been a sudden, extraordinarily large, and simultaneous expansion of multi-billion dollar housing programs in many emerging and developing economies. This shift occurred after a long period of limited public involvement in social housing production. Yet, despite the fact that countries and cities have introduced such large-scale programs, there has been little independent analysis of the rationale, efficacy and potential long-term effects of these interventions. Adopting a perspective that expands beyond typical public finance approaches, this paper examines the renewed shift in public housing provision. It provides an outlook of recent experiences in housing provision, showcases general trends in housing, proposes an evaluation framework, and offers a series of recommendations aiming at strengthening the programs. The paper concludes that if large-scale housing assistance is to help accommodate the almost 2 billion additional people who will live in cities over the next 35 years, as well as help to address the growing housing affordability issues, much more attention should be paid to the lasting effects that such programs can have on the structure of cities for generations to come.