Housing Affordability Problems Research Articles

The Vancouver socioecological fix: indigenous real-estate development as the city’s imagination of sustainability, affordability, and reconciliation

ABSTRACT In Vancouver, the Musqueam, Squamish, and Tsleil-Waututh First Nations are constructing several large real-estate developments that will deeply impact the Nations and the city itself. Developments such as Sen̓áḵw, Heather Lands, and Jericho Lands envision the construction of thousands of new apartments that will yield billions of Canadian dollars in profits from the Vancouver housing market. This paper is concerned with the enabling conditions for such developments found within the city of Vancouver’s planning policies and underlying geographical imaginations. Through the application of the “socioecological fix”, the paper describes how Vancouver’s planning policies aim at fixing problems of sustainability, housing affordability, and reconciliation based on specific geographical imaginations. This results in the conceptualization of reconciliation as the profit-oriented construction of green and affordable real-estate. In light of scholarship that highlights the intertwined nature of colonialism and capitalism, the paper raises the predicament that the reconciliatory approach conceptualized in city strategies and actively pursued by the Musqueam, Squamish, and Tsleil-Waututh is envisioning reconciliation as the reproduction of Vancouver real-estate capitalism. How should scholarship contend with reconciliatory approaches that are both reproductive of settler-colonial capitalism, while also offering reconciliation in a concrete form?

Hybrid housing models for older Australians: institutional framework and policy challenges

Older people seeking affordable housing in the mainstream housing tenures such as home ownership, private renting and social housing face increasing difficulties in accessing and remaining in appropriate housing. The mainstream housing tenures face pressure due to widening housing affordability problems in home ownership and the private rental sector in many advanced economies, exacerbated by declining investment in social housing. Hybrid housing models are often promoted as affordable and sometimes appropriate and adequate housing options for older people. These models combine aspects of ownership and renting in diverse ways, often posing challenges for tenure-based housing policies. Drawing on the case of Australia, the paper presents the findings of an institutional review of the production, consumption, management, and exchange of land lease communities, often marketed as a more affordable form of housing for older people compared to the more established hybrid form of retirement villages. Noting difficulties in scoping the size and significance of the land lease community sector from current data collections, we find (a) entry of large institutional investors risks undermining the relative affordability of the sector for older people; (b) security of occupancy is a critical policy issue and (c) concentration in rural areas raises concerns around risk of natural disasters and access to aged care and other services. These issues are often overlooked in housing policy and pose challenges for other policy domains including income support, social care, and health services.

Housing affordability and poverty in Europe: on the deteriorating position of market renters

Abstract There are growing concerns about housing affordability throughout Europe. Recent studies by Housing Europe and the OECD have suggested that we are witnessing a generalised deterioration in housing affordability, while other studies point to worsening housing affordability for specific groups, such as renters or low-income households. The aim of this paper is to explore trends in, and incidences and determinants of, housing affordability in a comparative European context over the period 2010 to 2018. To do this we analyse data from the EU Statistics on Income and Living Conditions survey. We examine trends across different measures of housing affordability; examine its association with a variety of socio-economic characteristics and explore country-level differences in housing affordability problems. Our study finds that despite claims of worsening housing affordability, affordability measures show little sign of generalised deterioration over the period in question but that risks of affordability problems have become more concentrated on market renters during this period. At the country level, we find that gross domestic product (GDP) per capita and the at-risk-of-poverty rate are associated with housing affordability problems both between countries as well as within countries over time, while housing allowance coverage and rent regulation stringency are associated with affordability problems between countries.

Progressively Develop People-centered Urban Transformation: Regenerate Livable, Attractive, Satisfying Urban Villages

This paper explores how to better develop a people-centered urban renewal project in the context of Shenzhens urban villages. In the beginning, this paper explains the background of the emergence of urban villages in Shenzhen and other major cities. Under this context, the participatory observation method is used to analyze the common problems in the renovation of urban villages in Shenzhen, and the housing affordability problem of the original residents for the newly constructed apartments is raised. Presenting the Nantou Ancient City in Shenzhen as positive empirical evidence, this paper explores two recommendations, starting with an emphasis on protective renovation to avoid a short-term boost in housing prices. Following discussion of urban renewal construction projects should not be limited to architectural space. Instead, inclusive community building is still the key to maintaining the former residents and attracting more young people. The condensed conclusion highlights the unity of these two viewpoints and reemphasizes the importance of people-centered development in urban villages.

TOD in regional urban growth boundaries (UGBs): A case of transit adjacent development or a strategic housing solution?

The Green Belt in England is probably the most longstanding and internationally recognised Urban Growth Boundary (UBG). However, developers, think tanks and academics often accuse UGB's of being the leading cause of the housing affordability problems around the world and articulate an alternative vision of Transit-Oriented Development (TOD). This paper, based upon a regional case study of the West Midlands and 74 interviews with planners and planning stakeholders, argues that the debate around TOD in the Green Belt needs to be more cognisant of regional geographical variation in public transport provision. Moreover, drawing upon the views of planners who play a key a role in allocating land for development, the paper underlines that decisions regarding TOD need to made strategically as reflecting the policy's purpose as a regional growth management policy. Reflecting on the broader academic literature, it highlights the need for greater strategic integration of transport and land-use planning alongside reviving strategic planning to evaluate various spatial blueprints for urban growth management. The paper has broader relevance to international debates about the feasibility and potential of TOD, especially in addressing housing affordability problems around the world.

New town development and housing affordability: A case study in Hong Kong

New towns and housing affordability are the hot topics among city planners, urban researchers, policymakers, and economists in recent years. Yet, whether the existing new town development could mitigate the problem of housing affordability for low-income people is understudied. To fill this important knowledge blank and research gap, this study selects Hong Kong to conduct the empirical analysis. Through examining the data from multiple sources such as Census statistics from the Hong Kong government, market-rate housing transaction records, and private housing transactions from the property agents’ website, we found that new town development mitigates the problems of housing affordability in Hong Kong in general but not for low-income tenants in particular. The low-income people in new towns pay more for living in unsubsidized affordable housing/subdivided units as their last shelters. As more new towns will be developed in the upcoming years, the results also found that the announcement of new development areas increases the housing rent rate by 9.4% in the new development areas. We suggest that the priority of the newly built subsidized housing in the new development areas should be allocated to the local/indigenous low-income people; otherwise, the housing affordability of low-income people may repeat the same pattern associated with the past new towns’ development.

Analysis of productivity performance of real estate and construction firms in Indonesia

Sustained total factor productivity (TFP) growth of firms is essential to achieve sustained supply growth, which is necessary to solve the housing shortage and affordability problems. Existing productivity literature focuses on large firms whilst smaller firms make a significant contribution to the total supply. This paper investigates the productivity of 363 Indonesian real estate construction firms of medium and large sizes. We estimate Färe-Primont TFP measures under the meta-frontier framework, accounting for differences in the overall technologies under which each group of firms operates. Results deliver several important findings. First, large firms have higher productivity levels than medium firms, but average productivity levels are very low. Second, the productivity growth of large and medium firms is negative, which contributes to the growth of the housing shortage in Indonesia from 2012 to 2016. Third, in case of easier transfer or spill-over of production technologies between two firm groups, firms could enhance further their efficiency and productivity. Fourth, those factors related to branch numbers, legal structure and experience of doing business have positive correlations with the productivity performance of firms in both large and medium groups. Additionally, medium firms could gain higher productivity by diversifying their income. Importantly, our study shows evidence to support that government subsidies have a positive influence on the productivity level of medium firms.

AFFORDABILITY OF AFFORDABLE HOUSING IN NORTHERN REGION OF MALAYSIA

The problem of housing affordability has emerged as a significant concern in urban centers, particularly in emerging countries. Whileeach country defines affordability differently, housing affordability refers to the capacity to possess a residential property or dwellingthat satisfies fundamental living requirements in relation to its price, standard, and whereabouts. However, the majority of generallycomprised of individuals and families with lower to moderate incomes, residing in various urban areas across Malaysia find itdifficult to purchase a home. The aim of this research is to evaluate the housing affordability index in Malaysia’s Northern Region (Kedah, Pulau Pinang, Perak, and Perlis) by proposing a maximum affordable housing cost determined by income level. The findings revealed that the housing affordability index has deteriorated as a result of growing income-price inequalities. It is suggested that government or housing policy makers to be responsible to establish a fair housing price that is determined through convincing and widely accepted judgments. Establishing prices could be based on genuine supply and demand dynamics, rather than being influenced by unfair trading practices, manipulation, or exploitation.

Učinci stambenog zbrinjavanja mlađe populacije na demografske trendove u Zagrebu

This paper researches the impacts of the housing problem of younger population on the demographic trends in the city of Zagreb. Housing problems in the city of Zagreb are marked by an increase of housing prices and rents, mainly in the uncontrolled market, and they differ from other parts of the country. In the context of the challenges of housing policy development in transition countries, the housing standard, housing tenure, the housing market and the rental housing market in Zagreb are analysed. Regarding the research methodology, the paper is based on a survey, analysis of statistical data and other, relatively scarce literature. The analysis of the housing market and the uncontrolled housing rental market speaks of the key problem of housing affordability. Social programs in this area are residual in nature and do not provide housing for vulnerable groups. An important contribution of the paper is a survey in the population aged 18 to 39 years. The results of the research show that less educated immigrants who come to Zagreb for employment cannot afford decent housing. The unsustainable status of tenants in the uncontrolled private market makes this population socially excluded. The affordability of decent housing mediated by financial problems and other factors has negative effects on childbearing. In addition, such forms of social deprivation are proving to be triggers for emigration from the country. Certain methodological innovations are proposed for future research in this area. In addition to the negative effects on demographic trends, the unaffordability of decent housing also affects labour mobility, and thus the social and economic development of the city of Zagreb. Key words: housing, housing policy, affordable housing, demographic renewal, Zagreb

Where Is the Housing Shortage?

This article examines the extent to which the US as a whole and its metropolitan areas face a housing shortage by comparing change in total housing units and total households from 2000 to 2020. Although various studies indicate that the nation has a shortage of anywhere from 2 million to 4 million units, Census data show little evidence of a shortage. Household formation did exceed the growth of households from 2010 to 2020, but that does not take into account the large surplus of housing produced during the previous decade. From 2000 to 2020, housing production exceeded the growth of households by 3.3 million units. Of the nation’s 381 metropolitan areas, only four experienced a housing shortage during this time, as did only 19 of the nation’s 526 micropolitan areas. Even though the stock of housing is adequate in most markets, the mismatch between the distribution of incomes and the distribution of housing prices results in housing affordability problems, especially for extremely low-income renters.

Dynamics of Housing Affordability and Effects of Regional Migration: Evidence From England and Japan

This study aims to identify the primary driving forces behind the recent high appreciation in housing prices, discover how regional mobility influences housing affordability, and determine what policies are effective to address the problem. To do this, we estimate the structural model of housing prices and regional mobility using 2012/2013 to 2020/2021 panel data for England and Japan. The results reveal that the housing market in England is quite responsive to changes in expected housing price appreciation and that regional mobility alleviates the housing affordability problem; however, the Japanese housing market lacks mobility and is responsive to the supply of new houses. Regional mobility in England was driven expected wage and house prices, which alleviated the negative effect of increased house prices and contributed to convergence of regional differences in affordability. In both countries, increased share of parttime workers would invite workers’ inflow and worsen the affordability. To address these issues, each country has implemented different policies, with varying degrees of effectiveness. The British government has targeted a substantial increase in housing supply, but it should be associated with measures for curving the expectation of house price appreciation in urban regions. The Japanese government, on the contrary, should increase housing stock by renovating vacant houses and liquidate the labour market.

Residential mobility and mental health

We examine the extent to which residential relocation within and between tenure types is associated with changes in mental health. We focus on four types of housing transition – rent-to-own, own-to-rent, own-to-own, and rent-to-rent – using Australian and UK panel data sets from 2001 to 2017. In both countries, transitions into homeownership and moves away from the mortgaged edges toward the unburdened mainstream of outright ownership are positively associated with mental health. On the other hand, shifts by mortgagors towards more precarious positions on the edges of ownership precipitate dips in mental health when there is exposure to high levels of payment and investment risks. Clearly, residential moves can both alleviate and introduce different kinds of risks that affect affordability. Moreover, tenure transitions have impacts on mental health beyond the impacts of payment and investment risks. However, we observe some cross-national differences in findings. In Australia, loss of homeownership has a negative impact on mental health that outweighs the mental health impacts of attaining ownership. In the UK, these findings are reversed. Acute housing affordability problems following moves in Australia, but not in the UK, are a significant driver of mental health outcomes. These differences have institutional explanations.

PRELIMINARY HOUSING CONTINUUM MODEL FRAMEWORK FOR YOUNG HOUSEHOLDS IN GREATER KUALA LUMPUR

Owning a house had been the standard for adults until property prices increased, particularly in urban regions. The price increase led to homeownership becoming a pipe dream for most people. Young households (YH) that intend to purchase a house are subject to social and economic challenges, including a housing policy gap such as devoting attention solely to low-income earners and overlooking the middle-income demographic. The study objectives were to examine housing affordability issues among YH in Greater Kuala Lumpur (GKL) and to review the housing continuum model (HCM) globally. The study data were collected through questionnaire surveys of 323 randomly sampled respondents aged 20–39 years living in GKL. Resultantly, rising housing prices, lower household income, and limited housing choices contributed to YH affordability issues. Furthermore, homeless shelters, social or public housing, affordable housing, rental housing, and private housing were critical HCM components. Based on the findings, the researchers proposed a preliminary HCM framework that can be used to inform YH of available options in the housing market. Moreover, the framework can be used to aid the mitigation of housing affordability problems faced by GKL YH by addressing these issues holistically via framing the components of available houses.

Can a basic income help address homelessness? A Titmussian perspective

Homelessness is a worsening problem across the developed world and existing policy responses are failing to have an impact. This article considers whether a basic income (BI) can play a role in radically overhauling prevailing homelessness policy and interventions. Drawing on Richard Titmuss’ classical arguments about the value of universalist welfare, I argue that a BI can play a role, but only as part of a suite of universalist measures that includes large-scale social housing investment and rent controls. I highlight how a BI can help address the ‘income side’ of the housing affordability problem driving homelessness, but must be coupled with other measures that address housing cost and supply. I also consider how a BI can reduce stigma arising from targeted homelessness measures. I conclude by arguing that addressing homelessness requires us to transform the logic of welfare provision and that a BI can help do this.

Factors determining housing prices: empirical evidence from a developing country’s Pakistan

PurposeThis study aims to explore empirically the impact of various factors/determinants on housing prices at the country level as well as in Lahore, the most populous metropolitan city of the most populous province Punjab, Pakistan.Design/methodology/approachThis study uses monthly data ranging from 2013M1 to 2020M1 on variables used in the study. Based on the stationarity results, the method of robust least square is used as an estimation technique. The validity of initial results is also authenticated by canonical cointegration regression.FindingsThe empirical result reveals that all included variables significantly affect housing prices both at country level as well as in Lahore. This study found negative impact of regressor age, real exchange rate and urbanization on housing prices, whereas the positive impact of gross domestic product (GDP) per capita, foreign remittances, broad money and real interest rate on housing prices in the case of Pakistan was found. On the other hand, results unveiled the negative impact of regressor age (proportion of population aged between 15 and 64), real exchange rate and urbanization on housing prices, whereas the positive impact of GDP per capita, foreign remittances, broad money and real interest rate on housing prices in Lahore metropolitan city was unveiled.Originality/valueBased on the extant literature survey, this is a more holistic study of its kind that uncovers the macroeconomic determinants by considering the demand side, supply side and demographic factors of escalated housing prices in Pakistan, so that proper policies can be adopted to keep the housing sector stable. Empirical findings are helpful to acquire an enhanced understanding of how the housing price is determined and form a base for government to tackle the housing affordability problem.

Trajectories of housing affordability and mental health problems: a population-based cohort study

PurposeWith housing costs increasing faster than incomes and a limited supply of social housing options, many households face unaffordable housing. Housing affordability problems may negatively impact mental health; however, longitudinal evidence is limited. This study investigates the association between trajectories of housing affordability problems and mental health.MethodsWe used data from 30,025 households from Understanding Society, a longitudinal household survey from the UK. Participants spending 30% or more of household income on housing were categorised as facing housing affordability problems. We estimated group-based trajectories of housing affordability problems from 9 waves of data (2009–2019). We used linear regression to calculate the association between the trajectories and mental health problems, as measured by General Health Questionnaire (GHQ) score in Wave 10 (2018–2020).ResultsWe found six distinct trajectories of housing affordability problems. Those in the ‘stable low’ group had a consistently low probability of affordability problems, whilst those in ‘high falling’ group had a sustained high probability in the earlier waves of the study, subsequently decreasing over time. The adjusted analysis showed that trajectory group membership over the first nine waves of data predicted GHQ score in 2018–2020 (Wave 10). Compared to the ‘stable low’ group, those in the ‘high falling’ group had a GHQ score that was 1.06 (95% CI 0.53–1.58) points higher.ConclusionThis study provides evidence that sustained exposure to housing affordability problems is associated with long-term worse mental health, even in the absence of more recent problems.

Design Exploration of Bamboo Micro House using Hyperbolic Paraboloid Structure

Limited land is a major problem in big cities, which has a direct impact on increasing land prices and low level of affordability. Micro house concept can be a solution to this problem. Planning a bamboo micro house with local materials can be an effort to contribute to a sustainability agenda. Bamboo is a local material that is environmentally friendly, adaptive, and widely available in Indonesia. Preserved bamboo construction with certain treatments is also affordable and durable for its high sustainability impact. This paper aims to study the exploration of bamboo materials in designing micro houses that suit the needs of urban communities. The house concept is open plan, so the spaces can be used multi-functionally by taking into account the requirements of livable micro houses. The method used is the Cyclical Design Process which consists of three stages, which are analysis stage, synthesis stage, and evaluation stage which is carried out repeatedly to produce a design that is in accordance with the design criteria that have been determined. Paraboloid hyperbolic structure system is used to produce an attractive and efficient form. The development of this micro-bamboo house is expected to be useful in solving the backlog and housing affordability problems in Indonesia.

Housing Affordability and Economic Growth

The U.S. has a chronic shortage of reasonably-priced housing. Decades of policy and program intervention at federal, state, and local levels has not substantively alleviated this problem. Consequently, alarmingly high proportions of the population spend over 30% of their income on housing costs and are deemed housing cost-burdened. Housing cost-burdened households have a much lower quality of life than those that are not. Thus, the housing affordability problem is a serious social concern. Is this problem also holding back the U.S. economy? I explore whether the lack of reasonably-priced housing adversely impacted per capita gross domestic product (GDP) growth in the 100 most populous metro areas of the country. I use publicly available data for three time points (2000, 2010, and 2015) and changes in the proportion of cost-burdened households in metros as the experimental variable. I find that decreases in housing affordability had a statistically significant negative effect on economic growth in these metros. Over 80% of the national GDP is generated in U.S. metros, and increasing housing affordability there may help grow the U.S. economy. Therefore, policies to increase housing affordability, long seen as a social imperative, may well be an economic imperative also.

Urban Housing Affordability Problem in Africa: A Search for Pragmatic Solution?

The paper takes a holistic view of the housing affordability problem to discuss the multifaceted nature of the problem vis-à-vis the political, social, institutional, economic, and financial milieu of Africa. The paper reviews the definitions of housing and housing affordability, and analyses relevant secondary data obtained through archival research and google search to propose practical measures for resolving the problem in the context of the socio-economic, cultural, and political milieu of Africa. It concludes that the enormity of the problem is a function of the vested interest of the powerbrokers, the market, the unwitting application of western models to Africa, poverty, and the sheer neglect of time-tested African means of affordable housing delivery by the housing policymakers of Africa. A significant fascinating finding is that the people can build cheap houses that no one (including the government, international bodies, aid donors, and especially the market) can do for them. All they need is help with infrastructure provision.

Growing Up as Rents Rise: How Housing Affordability Impacts Children

Over the past several decades, housing costs have risen sharply, and as a result, an increasing number of families have become “housing cost burdened,” paying more than one third of their income toward rent and utilities. This integrative literature synthesis considers the known and potential impacts of families’ housing affordability problems on child development and schooling outcomes through a review of 64 studies published between 2000 and 2020. The synthesis proceeds in three sections: the first section examines research on the direct connection between affordability and child outcomes. The second section considers the empirical evidence on four pathways through which affordability problems are theorized to affect child outcomes: the residential mobility pathway (by causing residential mobility, school mobility, eviction, or homelessness), the living environment pathway (by reducing the quality of housing or living conditions), the neighborhood and school opportunity pathway (by restricting access to high-opportunity neighborhoods and schools), and the parental resources pathway (by reducing financial resources that could be invested in children and increasing parental stress). The third section of the synthesis considers affordability’s impact on children through an examination of the research literature on the impact of federal housing assistance. Future directions for policy are considered, including the expansion of housing assistance for families, and additional research is urged on the impacts of housing affordability on children by scholars within the field of education.