tag:theconversation.com,2011:/uk/topics/affordable-homes-25823/articlesAffordable homes – The Conversation2023-11-15T23:18:28Ztag:theconversation.com,2011:article/2161602023-11-15T23:18:28Z2023-11-15T23:18:28ZInterim housing isn’t just a roof and four walls. Good design is key to getting people out of homelessness<p>State governments across the country have plans to increase <a href="https://ministers.treasury.gov.au/ministers/julie-collins-2022/media-releases/billions-boost-housing-and-affordability">social and affordable housing</a> to address <a href="https://newsroom.unsw.edu.au/news/social-affairs/what-housing-australia-future-fund-and-how-will-it-boost-social-housing">ballooning waitlists</a>.</p>
<p>While necessary, this <a href="https://theconversation.com/albaneses-10bn-pledge-pushes-housing-needs-back-into-the-limelight-160920">won’t be enough</a> to clear the backlog of people waiting for public housing. </p>
<p>It also takes time to make more affordable long-term housing options available. So what can be done in the meantime?</p>
<p>Our research shows a new way of providing interim housing to support people transitioning out of homelessness.</p>
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Read more:
<a href="https://theconversation.com/efforts-to-find-safe-housing-for-homeless-youth-have-gone-backwards-heres-what-the-new-national-plan-must-do-differently-210704">Efforts to find safe housing for homeless youth have gone backwards. Here's what the new national plan must do differently</a>
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<h2>Short-term solutions in high demand</h2>
<p><a href="https://cityfutures.ada.unsw.edu.au/social-and-affordable-housing-needs-costs-and-subsidy-gaps-by-region/">Studies</a> have stressed the importance of meeting people’s immediate needs for secure and affordable homes, even in the short term.</p>
<p>It’s fallen to community housing providers to look at ways to provide immediate shelter.</p>
<p>Two providers in Victoria launched the <a href="https://www.deakin.edu.au/about-deakin/news-and-media-releases/articles/tiny-house-project-set-to-make-a-big-impact-in-geelong-and-beyond">Independent Living Units Program</a> to address this gap.</p>
<p>The prefabricated units, or “tiny homes”, are homely, stylish, energy-efficient and compact. </p>
<p>Designed to house men experiencing homelessness, they’re a temporary home for six months to get people out of crisis accommodation while they try to break into the private housing market.</p>
<p>Importantly, the residents are also provided with individual case managers and tailored support services on site to help them transition from homelessness. </p>
<p>It’s a careful balance of two different housing approaches you may have heard of: housing first and treatment first.</p>
<p><a href="https://www.ahuri.edu.au/analysis/brief/what-housing-first-model-and-how-does-it-help-those-experiencing-homelessness">Housing first</a> prioritises stable and permanent housing over all else. </p>
<p><a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3151537/">Treatment first</a> integrates housing with support services, prioritising addressing underlying issues such as mental health disorders. This often means people must be able to demonstrate a period of treatment compliance before they’re allowed to live independently.</p>
<p>These two approaches haven’t worked perfectly alone. This program sought to put the best of both of them together.</p>
<h2>Built environment key to success</h2>
<p>Early in the project, testimonials were promising, so we were brought on board to evaluate it academically.</p>
<p><a href="https://dro.deakin.edu.au/articles/report/The_Independent_Living_Unit_Project_Evaluating_a_compact_transitional_independent_living_housing_model_for_homeless_men/24180432/1">Our research</a> analysed the experiences of people who’d lived in the units. It also looked at the goals of the program, the demand for it and viability of funding.</p>
<p>Perhaps unsurprisingly, our analysis supported the importance of having supportive, forgiving environments for people escaping homelessness. </p>
<p>There’s already <a href="https://www.degruyter.com/document/doi/10.7591/9780801455544/html">plenty of research</a> supporting this idea.</p>
<p>We found, in practice, such an environment should support independent living and meaningful community connectedness.</p>
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Read more:
<a href="https://theconversation.com/ageing-in-a-housing-crisis-growing-numbers-of-older-australians-are-facing-a-bleak-future-209237">Ageing in a housing crisis: growing numbers of older Australians are facing a bleak future</a>
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<p>All this may sound obvious, but it’s not just about a roof and some support services. The key to achieving the environment people need is in the design of the housing itself.</p>
<p>In other words, the built environment helps create the social and emotional one.</p>
<p>The Independent Living Units Program demonstrates this idea in practice.</p>
<p>In particular, we identified 18 factors that were important, including appropriately sized self-contained units, planned activities, semi-open spaces and clustered unit arrangements.</p>
<p>Our research also shows how these factors need to function together to create a sense of home after homelessness, especially when such a place is temporary.</p>
<p>Residents told us there were many benefits beyond immediate relief of homelessness. These include: </p>
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<li><p>reduced levels of anxiety</p></li>
<li><p>enhanced safety and security</p></li>
<li><p>stable and consistent daily routines and overall wellbeing</p></li>
<li><p>boosted self-confidence and self-reliance</p></li>
<li><p>a sense of worthiness and empowerment over their life</p></li>
<li><p>a burgeoning sense of community. </p></li>
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<p>On a logistical level, the program brought together various stakeholders.</p>
<p>A housing association, local higher education and research institutions, a local manufacturer, state government departments, philanthropists and a charitable organisation were all involved.</p>
<p>Overall, our study found the program fills a gap in the current wide range of housing solutions. </p>
<h2>How would it work on a larger scale?</h2>
<p>The Independent Living Units Program is a small initiative based in Geelong, but its unique approach could be replicated across the country.</p>
<p>For that to happen, however, there are some key challenges to navigate:</p>
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<li><p>Funding would need to be flexible and ongoing. </p></li>
<li><p>Housing regulations in each area would need to be flexible and evidence-based. </p></li>
<li><p>Limited land availability means governments and communities would need to work together to make space for interim housing. </p></li>
<li><p>Service providers would need to be trained in trauma-informed care to best help people transitioning from homelessness. One way of doing this is by mandating it in policy.</p></li>
<li><p>The existing scarcity of affordable housing, coupled with low vacancy rates in rentals, makes it more likely residents end up homeless again after leaving interim programs.</p></li>
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Read more:
<a href="https://theconversation.com/its-soul-destroying-how-people-on-a-housing-wait-list-of-175-000-describe-their-years-of-waiting-210705">'It's soul-destroying': how people on a housing wait list of 175,000 describe their years of waiting</a>
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<p>Our study also found perceived competition within the housing sector between transitional and permanent housing programs. This, too, would need to be addressed.</p>
<p>Even with those challenges, the Independent Living Units Program provides a much-needed stepping stone into permanent housing.</p>
<p>With the right support, it could form part of the solution to the complex housing crisis.</p><img src="https://counter.theconversation.com/content/216160/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Fiona Andrews received funding from the Geelong Community Foundation and the Lord Mayors Charitable Foundation</span></em></p><p class="fine-print"><em><span>Deakin University has received funding from the Lord Mayor's Charitable Foundation and Geelong Community Foundation for research into evaluating the transitional housing model known as ILUP. Richard Tucker led this project.</span></em></p><p class="fine-print"><em><span>Anahita Sal Moslehian and David Giles do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It takes time to make more affordable long-term housing options available. So what can be done in the meantime? We can start by prioritising well-designed, supportive transitional housing.Anahita Sal Moslehian, Postdoctoral Research Fellow, HOME Research Centre, Deakin UniversityDavid Giles, Senior lecturer in Anthropology, Deakin UniversityFiona Andrews, Senior Lecturer, School of Health and Social Development, Deakin UniversityRichard Tucker, Associate Professor, Associate Head of School (Research), co-leader of the research network HOME, Deakin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2010752023-03-26T12:51:10Z2023-03-26T12:51:10ZCanadian young adults who live alone are more likely to struggle with unaffordable housing, study finds<figure><img src="https://images.theconversation.com/files/516805/original/file-20230321-301-b8dyn4.jpg?ixlib=rb-1.1.0&rect=139%2C0%2C6230%2C4213&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">One in five young adults live in unaffordable housing and spend 30 per cent or more of their pre-tax income on housing costs.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><iframe style="width: 100%; height: 100px; border: none; position: relative; z-index: 1;" allowtransparency="" allow="clipboard-read; clipboard-write" src="https://narrations.ad-auris.com/widget/the-conversation-canada/canadian-young-adults-who-live-alone-are-more-likely-to-struggle-with-unaffordable-housing--study-finds" width="100%" height="400"></iframe>
<p>Canada is experiencing a housing affordability crisis. <a href="https://data.oecd.org/price/housing-prices.htm">Over the past 20 years, housing prices have increased at double the rate of income growth</a>. Partly fuelled by dramatic interest hikes, rental prices have also risen precipitously in recent months. <a href="https://rentals.ca/national-rent-report">In March 2023, the year-over-year rent increased by 9.7 per cent</a>.</p>
<p>Young adults are among the groups most adversely affected by the housing crisis. <a href="https://doi.org/10.31235/osf.io/q9py3">One in five young adults live in unaffordable housing and spend 30 per cent or more of their pre-tax income on housing costs</a>.</p>
<p><a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220921/dq220921b-eng.htm">Rising housing costs</a>, <a href="https://thoughtleadership.rbc.com/proof-point-without-investment-canadian-wages-could-reignite-inflation/">declining real wages</a> and <a href="https://doi.org/10.1080/01494929.2020.1728005">increasing job instability</a> have been identified as key reasons why young adults have limited access to affordable housing.</p>
<p>During this time, Canada has also witnessed the diversification of young adults’ living arrangements. <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.htm">More young adults live with their parents, extended family or roommates</a>, primarily because there is a greater need to pool resources to cover high housing costs.</p>
<p>A young adult’s living arrangement is the product of their ability to transition into an adult economic role and gain access to private safety nets during financial crises.</p>
<p>The diversification of Canadian young adults’ living arrangements during the housing affordability crisis raises two questions. First, among young adults, who are the ones with the highest risk of having unaffordable housing? Second, to what extent does living with family or roommates reduce young adults’ risk of having unaffordable housing?</p>
<h2>Young adults’ housing vulnerability</h2>
<p><a href="https://doi.org/10.31235/osf.io/q9py3">Our study</a> addresses these questions by documenting variations in young adults’ risk of having unaffordable housing according to their living arrangements. We focus on young adults between 25 and 34 years of age.</p>
<p>We show that young adults living alone with their children have the highest predicted risk of having unaffordable housing. Over half of Canadian-born young adults living alone with their children live in unaffordable housing. Those who live alone are a close second: 38 per cent of young adults who live alone do so.</p>
<p>Living with parents, extended family or roommates reduces young adults’ predicted risk of having unaffordable housing. However, the protective effect of living with parents or extended family is greater than that of living with roommates. For example, seven per cent of Canadian-born young adults living with parents live in unaffordable housing compared with 16 per cent of young adults living with roommates.</p>
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<img alt="A bar graph" src="https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=278&fit=crop&dpr=1 600w, https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=278&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=278&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=350&fit=crop&dpr=1 754w, https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=350&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/516785/original/file-20230321-2318-m0z4kd.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=350&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The predicted percentage of Canadian-born young adults versus foreign-born young adults having unaffordable housing.</span>
<span class="attribution"><span class="source">(Kate Choi and Sagi Ramaj)</span>, <span class="license">Author provided</span></span>
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<h2>Unequal risks based on nativity status</h2>
<p>Many foreign-born young adults come to Canada without their parents or without having extended family in Canada. As such, these young adults may not be able to pool resources with parents or kin to cover housing costs.</p>
<p><a href="https://www.doi.org/10.1257/pol.3.4.148">Due to labour market discrimination</a>, others may not have access to the financial resources necessary to establish independent households. <a href="https://homelesshub.ca/sites/default/files/attachments/Linking%20Immigrant%20Settlement%2C%20Health%2C%20Housing%20and%20Homelessness%20in%20Canada.pdf">They may also have fewer social ties in Canada</a>, meaning that they have limited access to information about housing vacancies.</p>
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<img alt="A bar graph" src="https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=278&fit=crop&dpr=1 600w, https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=278&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=278&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=350&fit=crop&dpr=1 754w, https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=350&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/516803/original/file-20230321-3546-zw9gr2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=350&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The predicted percentage of Canadian-born young adults who have moderate versus severe unaffordable housing.</span>
<span class="attribution"><span class="source">(Kate Choi and Sagi Ramaj)</span>, <span class="license">Author provided</span></span>
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<p>Our findings reveal that foreign-born young adults are generally more likely than Canadian-born with the same living arrangement to live in unaffordable housing. Fifteen per cent of foreign-born and seven per cent of Canadian-born young adults who live with their parents live in unaffordable housing.</p>
<p>Those who live alone with their children are an exception. Foreign-born young adults who live with their children only are less likely than their Canadian-born peers to live in unaffordable housing. This is partly because a higher share of foreign-born single parents have been previously married.</p>
<p>Particularly concerning is that foreign-born young adults with housing unaffordability issues are disproportionately more likely to have severely unaffordable housing, spending at least half of their pre-tax income on housing.</p>
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<img alt="A bar graph" src="https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=278&fit=crop&dpr=1 600w, https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=278&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=278&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=350&fit=crop&dpr=1 754w, https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=350&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/516792/original/file-20230321-3159-h6guf7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=350&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">The predicted percentage of foreign-born young adults who have moderate versus severe unaffordable housing.</span>
<span class="attribution"><span class="source">(Kate Choi and Sagi Ramaj)</span>, <span class="license">Author provided</span></span>
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<h2>Reducing housing vulnerability</h2>
<p>Canada is implementing its <a href="https://www.cmhc-schl.gc.ca/en/nhs/guidepage-strategy">National Housing Strategy</a>, which aims to invest at least $82 billion to address the housing needs of Canadians. Within this strategy, <a href="https://www.cmhc-schl.gc.ca/en/nhs/guidepage-strategy/priority-areas-for-action">young adults have been identified as one of the groups with the most unmet housing needs</a>.</p>
<p>When implementing this strategy, the Canadian government should increase the supply of affordable housing units that meet the housing needs of young adults in Canada.</p>
<p>In particular, the government should create more affordable housing that can accommodate young adults who live alone or only with their children. Doing so will reduce young adults’ risk of having unaffordable housing and the burden it places on families by forcing them to subsidise the housing needs of young adults.</p>
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Read more:
<a href="https://theconversation.com/how-canada-plans-to-break-records-with-its-new-refugee-targets-193880">How Canada plans to break records with its new refugee targets</a>
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<p>To fuel the post-pandemic economic recovery, <a href="https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/annual-report-parliament-immigration-2022.html">Canada is aiming to welcome 500,000 new immigrants a year by 2025</a>. Immigration and Settlement Services should consider allocating more resources to address the housing needs of these newcomers into Canada.</p>
<p>Doing so will protect immigrants from having severely unaffordable housing and ensure that <a href="https://www.desjardins.com/content/dam/pdf/en/personal/savings-investment/economic-studies/canada-housing-market-february-13-2023.pdf">housing affordability in Canada does not erode any further</a>. Access to affordable housing will create an environment where young adults and all Canadians can thrive.</p><img src="https://counter.theconversation.com/content/201075/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Choi receives funding from the Social Sciences and Humanities Research Council. </span></em></p><p class="fine-print"><em><span>Sagi Ramaj has previously received funding from the Social Sciences and Humanities Research Council. </span></em></p>Young adults are among the groups most adversely affected by the housing crisis. Foreign-born young adults, in particular, are disproportionately more likely to live in unaffordable housing.Kate Choi, Associate Professor, Sociology, Western UniversitySagi Ramaj, PhD Student, Department of Sociology, University of TorontoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1920012022-10-24T12:27:28Z2022-10-24T12:27:28Z4 reasons affordable housing is slow to recover after disasters like hurricanes, and what communities can do about it<figure><img src="https://images.theconversation.com/files/490720/original/file-20221019-20-rosrjj.jpg?ixlib=rb-1.1.0&rect=0%2C8%2C3000%2C1985&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Hurricane damage to affordable housing can leave business owners struggling to find employees. </span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/eugene-scott-walks-through-the-muck-on-the-floor-of-athena-news-photo/613351744">Joe Raedle/Getty Images</a></span></figcaption></figure><p>How a community recovers after a disaster like Hurricane Ian is often a “chicken and egg” question: Which returns first – businesses or households?</p>
<p>Businesses need employees and customers to be able to function. Households need jobs and the services businesses provide.</p>
<p>As an urban planning researcher who focuses on housing recovery after disasters, I have found in <a href="https://doi.org/10.1177/0042098011428178">my research</a> that they’re mutually dependent. However, in coastal communities, the recovery of tourism-based businesses like restaurants and hotels depends in large part on the return of affordable housing for employees.</p>
<p>Rockport, Texas, where Hurricane Harvey made landfall in 2017, is an example of the challenge. It’s a small community that caters to vacationers and sport fishermen, including celebrities like country singer George Strait, who <a href="https://www.kiiitv.com/article/news/local/campaign-featuring-george-strait-to-urge-tourism-in-rockport-fulton/503-527353678">filmed an ad campaign</a> in 2018 urging tourists to return to Rockport. Drawing tourists isn’t easy without fully functioning restaurants and hotels, though. In a community review published about the same time, <a href="https://www.rockport-fulton.org/Hurricane_Harvey_Current_Economic_Reality">business leaders in Rockport said</a> that the inability of low-wage workers to find housing in the area was a key obstacle to their own recovery.</p>
<p>I’ve been studying housing recovery since 2008, when Hurricane Ike devastated large parts of Galveston, Texas. I’ve found that in many communities, affordable housing <a href="https://doi.org/10.1080/01944363.2014.980440">returns only very slowly</a> after a disaster, if at all. </p>
<h2>Affordable housing tends to be older</h2>
<p>The main source of affordable single-family housing in most communities comes from what’s known as “<a href="https://doi.org/10.1080/0042098966367">filtering</a>.”</p>
<p>Neighborhoods have a life cycle. As they age, they are either redeveloped or gentrified, or they decline. As a neighborhood declines, homes are more likely to be occupied by renters. They also become more affordable, and they tend to be <a href="https://doi.org/10.1080/10511482.2011.576525">less well maintained</a>. Apartment buildings that are designed for renters go through a similar life cycle.</p>
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<img alt="An Hispanic woman and man stand in a flood-damaged living room. The ceiling has a hole from the storm." src="https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=421&fit=crop&dpr=1 600w, https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=421&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=421&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/490721/original/file-20221019-16-lu80js.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Many affordable homes in Rockport flooded during Hurricane Harvey.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/celina-martinez-returns-to-find-her-family-home-badly-news-photo/839642952">Mark Ralson/AFP via Getty Images</a></span>
</figcaption>
</figure>
<p>In Galveston after Hurricane Ike, <a href="https://doi.org/10.1177/0739456X14531828">we found that the most damaged housing</a> was often in low-income and predominantly minority neighborhoods with older homes. </p>
<p>Much of the workforce housing in these neighborhoods was built <a href="https://www.steinberglawfirm.com/blog/what-to-know-about-slab-on-foundations/">slab on grade</a>, meaning the first floor is at ground level and vulnerable to flooding. Most higher-cost homes, in contrast, were elevated anywhere from 3 to 14 feet (about 1 to 4 meters).</p>
<p>Because most affordable housing becomes affordable by becoming old and dilapidated, rebuilding the same size home will also be more expensive than the original, especially amid the <a href="https://www.nahb.org/news-and-economics/press-releases/2022/09/builder-confidence-falls-for-ninth-straight-month-as-housing-slowdown-continues">current construction market</a>’s supply chain disruptions.</p>
<p>Further, lower-income families are <a href="https://www.bloomberg.com/news/articles/2022-10-01/few-florida-homes-hit-by-hurricane-ian-are-covered-for-floods">less likely to have adequate insurance</a> or savings that will allow them to rebuild quickly. They often must wait for federal assistance through the <a href="https://www.hud.gov/program_offices/comm_planning/cdbg-dr">Community Development Block Grant Disaster Recovery</a> program, which can take years to reach homeowners.</p>
<h2>It’s also more likely to be severely damaged</h2>
<p>Affordable housing is often in less desirable areas, including low-lying areas prone to flooding.</p>
<p>Our <a href="https://doi.org/10.1080/01944363.2014.980440">research in both Galveston after Hurricane Ike and in the Miami area</a> after Hurricane Andrew in 1992 found that low-value homes were most likely to suffer extensive damage during flooding.</p>
<p><iframe id="Y8hWI" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/Y8hWI/12/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>They also take much longer to recover their value, if they recover it at all. In both Galveston and Miami, low-value homes that had extensive damage still <a href="https://doi.org/10.1080/01944363.2014.980440">had not regained their pre-storm value</a> four years after the hurricane, while higher-value homes sustaining even moderate damage gained value.</p>
<h2>Rental housing recovers half as quickly</h2>
<p>While renters are difficult to track after hurricanes, we do know that they are <a href="https://doi.org/10.1177/0885412218812080">more likely to experience long-term displacement</a>.</p>
<p>Our research shows that rental units suffer more damage and <a href="https://doi.org/10.1177/0885412218812080">recover about half as quickly</a> as owner-occupied housing.</p>
<p><iframe id="tPnBb" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/tPnBb/11/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>For low-wage workers, the uncertainty of whether they will be able to return to rental units can mean they decide to <a href="https://www.texastribune.org/2018/08/24/hurricane-harvey-year-later-rockport-cant-find-housing-evacuees/">seek work and housing elsewhere</a>. In talking with residents in Rockport after Hurricane Harvey, I heard repeatedly that workers had moved permanently to San Antonio, 160 miles away, or Corpus Christi, 30 miles away, to find both work and housing after the storm.</p>
<h2>Business decisions can slow rental recovery</h2>
<p>In both Galveston and the Miami area, we found that the recovery of apartments and duplexes was <a href="https://doi.org/10.1080/01944363.2014.980440">much more volatile</a> than single-family housing and took much longer.</p>
<p>Because these housing types are owned by businesses rather than occupants, the decision to rebuild is less urgent and less emotional.</p>
<figure class="align-center ">
<img alt="A man stands with his hands on his hips looking a wet household goods that have been dragged out into the street in front of an apartment building." src="https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=387&fit=crop&dpr=1 600w, https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=387&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=387&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=486&fit=crop&dpr=1 754w, https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=486&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/490724/original/file-20221019-16-velxup.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=486&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Hurricane Ike damaged apartment buildings in Galveston where low-wage workers lived.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/residents-of-the-justine-apartments-stand-near-a-pile-of-news-photo/82928790">Scott Olson/Getty Images</a></span>
</figcaption>
</figure>
<p>Anecdotally after Harvey, I heard a lot from community organizations in Houston about the speculative purchasing of damaged single-family homes by corporations that flipped them and turned them into rental houses. <a href="https://www.reuters.com/article/us-storm-harvey-housing-investors/flood-fix-and-flip-houston-housing-investors-see-profit-in-harveys-wake-idUSKCN1BX0DA">Investors also talked about the money</a> they could make by <a href="https://www.nytimes.com/2018/03/23/us/flooding-canyon-gate-hurricane-harvey.html">buying homes at cut-rate prices</a> after the storm, fixing them up and selling them at a large profit.</p>
<p>While homes have always been commodities – and a critical way that families build wealth – the <a href="https://financialservices.house.gov/uploadedfiles/hhrg-117-ba09-wstate-lopezs-20220628.pdf">practice of corporate ownership</a> restricts housing availability, inflating housing prices. Flipping homes also distorts markets through rapid increases in values.</p>
<h2>What can communities do?</h2>
<p>Ensuring that a community will have affordable housing after a disaster starts well before that disaster strikes. Creating a community recovery plan can emphasize the importance of affordable housing to the community’s economic resilience.</p>
<p>Framing affordable housing as a public good and characterizing it as “workforce housing” for teachers, law enforcement officers, and other public servants can help overcome NIMBY – “not in my backyard” – concerns, but it can still be an uphill battle. </p>
<p>Communities currently recovering will have to be aggressive about ensuring the rebuilding of affordable housing. This means applying for FEMA and Community Development Block Grant funding and thinking creatively about how to bring down the costs of rebuilding.</p>
<p>One creative approach is <a href="https://shelterforce.org/2019/02/28/community-land-trusts-in-the-age-of-climate-change">community land trusts</a>. Community land trusts are a way of cooperatively purchasing and owning land that individual households can build on. <a href="https://oaktrust.library.tamu.edu/handle/1969.1/189335">Identifying land</a> that is publicly owned or donated can provide a place to quickly rebuild homes for low-wage workers.</p>
<p>Another innovative program for rapid recovery of affordable housing is being piloted by the nonprofit <a href="https://texashousers.org/members/">Texas Housers</a>. Rather than bringing in FEMA trailers after a disaster, the <a href="https://texashousers.org/2019/06/07/there-is-now-a-proven-solution-for-disaster-home-rebuilding-that-is-rapid-efficient-and-just-lets-use-it/">Rapido</a> program quickly and inexpensively builds <a href="https://www.arch.tamu.edu/app/uploads/2021/10/Rapido-Final.pdf">the core of a house</a>, similar in size to a mobile home. The core is then designed to be built out later into a larger home once federal funds are available.</p>
<p>Several Florida communities are now dealing with damage to affordable housing after Hurricane Ian. Coastal communities everywhere can learn from what these communities have experienced and prepare now for <a href="https://theconversation.com/hurricane-ian-capped-2-weeks-of-extreme-storms-around-the-globe-heres-whats-known-about-how-climate-change-fuels-tropical-cyclones-191583">more extreme storms in the future</a>.</p><img src="https://counter.theconversation.com/content/192001/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Shannon Van Zandt receives funding from the National Science Foundation and the National Institute for Standards & Technology. She is affiliated with Texas Housers. </span></em></p>Research shows that coastal businesses’ hurricane recovery depends on workers being able to return.Shannon Van Zandt, Professor of Landscape Architecture and Urban Planning, Texas A&M UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1854792022-06-27T17:15:52Z2022-06-27T17:15:52ZEthno-racial minorities in Canada have less access to affordable housing than white people<figure><img src="https://images.theconversation.com/files/470692/original/file-20220624-52323-vqtddy.jpg?ixlib=rb-1.1.0&rect=0%2C11%2C3986%2C2653&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A new study on Canada's affordability crisis has found that visible minorities have less access to affordable housing than whites in Canada.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><p>Canada is grappling with a <a href="https://theconversation.com/new-study-reveals-intensified-housing-inequality-in-canada-from-1981-to-2016-173633">housing affordability crisis</a>. Housing prices and rent have increased dramatically over the past few years. <a href="https://doi.org/10.1080/0267303042000204296">Families are increasingly spending 30 per cent or more</a> of their pre-tax income on housing costs. </p>
<p>High housing costs <a href="https://www.irp.wisc.edu/resource/unaffordable-america-poverty-housing-and-eviction/">leave families little money for other necessities</a> like food or health care. They also prevent them from saving for future emergencies. Because of this, limited access to affordable housing is <a href="https://doi.org/10.1007/s00127-020-01849-1">linked with lower life satisfaction and poor mental health</a>. </p>
<figure class="align-right ">
<img alt="A man in a suit gesturing with his hands as he speaks" src="https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=411&fit=crop&dpr=1 600w, https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=411&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=411&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=516&fit=crop&dpr=1 754w, https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=516&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/470681/original/file-20220623-53892-kllxyw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=516&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Health Minister Jean-Yves Duclos is in charge of Canada’s decade-long national housing strategy.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Adrian Wyld</span></span>
</figcaption>
</figure>
<p>To address the housing affordability crisis, the Canadian government launched the <a href="https://www.cmhc-schl.gc.ca/en/nhs/guidepage-strategy">National Housing Strategy in 2017,</a> which sought to invest $72 billion to increase housing supply. </p>
<p>For this policy to be successful, the government must accurately assess <em>which groups</em> have the most barriers to affordable housing and <em>why</em> they are vulnerable.</p>
<h2>Filling the research gap</h2>
<p>Prior work has shown that <a href="https://doi.org/10.1080/0267303042000204296">recent immigrants, single mothers and residents of large cities are less likely to live in affordable housing in Canada</a>. Researchers rarely examine whether visible minorities are less likely than white people to live in affordable housing in Canada.</p>
<p><a href="https://doi.org/10.31235/osf.io/s32x7">Our new study</a> on Canada’s affordability crisis partially closes this knowledge gap. We used data from the 2016 Canadian Census to document ethno-racial variations in access to affordable housing. Once these patterns were established, we identified why certain ethno-racial groups have less access to affordable housing.</p>
<figure class="align-center ">
<img alt="A woman standing in front of a house" src="https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=414&fit=crop&dpr=1 600w, https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=414&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=414&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=521&fit=crop&dpr=1 754w, https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=521&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/470686/original/file-20220623-13-3c4h0r.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=521&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A resident is pictured outside their housing co-operative in Sherwood Park, Alta., in April 2022. Co-operative housing is one way for people to find affordable housing in Canada’s big cities.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Jason Franson</span></span>
</figcaption>
</figure>
<p>We found that <a href="https://www23.statcan.gc.ca/imdb/p3Var.pl?Function=DECI&Id=257515">visible minorities</a> have less access to affordable housing than white people in Canada. Unaffordable housing rates were especially high among Middle Easterns, North Africans, East Asians and South Asians.</p>
<p>Not surprisingly, there are different reasons why specific ethno-racial groups struggle with housing affordability. Middle Eastern and North Africans have limited access to affordable housing primarily due to their high unemployment rates. In contrast, rates of unaffordable housing are high for East and South Asians largely because they tend to reside in large urban cities, <a href="https://www.ctvnews.ca/canada/these-are-the-most-expensive-canadian-cities-to-rent-a-home-1.5956534">where housing prices are high</a>. </p>
<h2>Lessons from the COVID-19 pandemic</h2>
<p>Many visible minority groups in Canada <a href="https://theconversation.com/data-linking-race-and-health-predicts-new-covid-19-hotspots-138579">have had disproportionately high COVID-19 infection rates</a> compared to the rest of the population. One reason for this was because <a href="https://www.theglobeandmail.com/canada/toronto/article-data-show-poverty-overcrowded-housing-connected-to-covid-19-rates/">visible minorities were more likely to live in overcrowded housing</a> than white people and other minority groups. </p>
<p>These findings suggest that some visible minorities may be grappling with housing affordability problems. To pay the mortgage or rent, <a href="https://escholarship.mcgill.ca/concern/theses/5h73q012r">they may have to “double up” by moving in with other families</a>. They may also have to live in inadequate housing <a href="https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2020003-eng.htm">without necessary amenities like proper ventilation</a>. </p>
<h2>Housing vulnerability across immigrant generations</h2>
<p>Our study also showed that immigrants were generally more likely than Canadian-born members of their own ethno-racial group to live in unaffordable housing. </p>
<p>Black Canadians, however, were the exception. The unaffordable housing rates of Canadian-born Black people differed little from those of foreign-born Black people. Among the Canadian-born, Black people had the highest unaffordable housing rates, along with Middle Eastern and North Africans.</p>
<p>These findings suggest that most immigrant groups in Canada are able to achieve the socioeconomic mobility necessary to meet their housing needs over time. Black Canadians, however, encounter persistent barriers in access to affordable housing, including racial discrimination <a href="https://doi.org/10.1007/s10901-008-9118-9">in the rental market</a> and <a href="https://www150.statcan.gc.ca/n1/pub/85-002-x/2022001/article/00002-eng.htm">in financial institutions</a>.</p>
<h2>Policy implications</h2>
<p>Four lessons emerge from our study. First, policymakers should increase the housing supply in large cities — like <a href="https://www.ctvnews.ca/canada/these-are-the-most-expensive-canadian-cities-to-rent-a-home-1.5956534">Toronto and Vancouver</a> — where housing prices have increased the most in recent years. These cities are also home to many visible minorities, immigrants and young families, who are struggling with housing affordability. </p>
<figure class="align-center ">
<img alt="A construction worker standing on the balcony of a building under construction" src="https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=402&fit=crop&dpr=1 600w, https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=402&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=402&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=505&fit=crop&dpr=1 754w, https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=505&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/470690/original/file-20220624-51579-jofxes.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=505&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A condo tower under construction in Burnaby, B.C. Vancouver is one of the most expensive cities in the world to live in.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Darryl Dyck</span></span>
</figcaption>
</figure>
<p>Second, we need to <a href="https://www.ryerson.ca/content/dam/social-innovation/Programs/Affordable_Housing_Visual_Systems_Map_Oxford.pdf">increase the wages of Canadian workers</a>. Increasing wages offers an alternate solution to the unaffordable housing crisis. This would be a solution for many groups in Canada, including Middle Eastern and North Africans. </p>
<p>Third, greater efforts must be made to remove barriers to accessing affordable housing among Black Canadians. </p>
<p>Lastly, Canadian immigration policies should aim to increase recent immigrants’ access to affordable housing, since they are more likely to live in unaffordable housing. If the federal government plans to <a href="https://www.canada.ca/en/immigration-refugees-citizenship/news/2022/02/new-immigration-plan-to-fill-labour-market-shortages-and-grow-canadas-economy.html">welcome 430,000 permanent residents per year over the next three years</a>, it must ensure these residents can afford housing, if they are able to become productive and thriving members of Canadian society.</p>
<p>The National Housing Strategy’s goal is to <a href="https://www.placetocallhome.ca/">make affordable housing available to all Canadians</a>. Ensuring that visible minorities have greater and equitable access to affordable housing is an important step in fulfilling that goal.</p><img src="https://counter.theconversation.com/content/185479/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Choi receives funding from Social Sciences and Humanities Research Council. </span></em></p><p class="fine-print"><em><span>Sagi Ramaj receives Doctoral funding from the Social Sciences and Humanities Research Council.</span></em></p>Ensuring visible minorities have equitable access to affordable housing is an important step in fulfilling the National Housing Strategy’s goal to make affordable housing available to all Canadians.Kate Choi, Associate Professor, Sociology, Western UniversitySagi Ramaj, PhD Student, Department of Sociology, University of TorontoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1841032022-06-19T12:50:59Z2022-06-19T12:50:59ZOntario must commit to affordable housing for all, not attainable housing<figure><img src="https://images.theconversation.com/files/469325/original/file-20220616-22-h57bd7.JPG?ixlib=rb-1.1.0&rect=9%2C0%2C5997%2C4007&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A for sale sign outside a home indicates that it has sold for over the asking price, in Ottawa, in March 2021. House prices and rents have become increasingly more unaffordable in Ontario over the past few years.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Justin Tang</span></span></figcaption></figure><iframe style="width: 100%; height: 100px; border: none; position: relative; z-index: 1;" allowtransparency="" allow="clipboard-read; clipboard-write" src="https://narrations.ad-auris.com/widget/the-conversation-canada/ontario-must-commit-to-affordable-housing-for-all--not-attainable-housing" width="100%" height="400"></iframe>
<p>During his <a href="https://www.youtube.com/watch?v=53w6RP_ADDM">provincial election victory speech on June 2</a>, Ontario Premier Doug Ford said he aimed to build more housing to make the housing market more “attainable” for everyone.</p>
<p>Although most people probably didn’t pay close attention to the specific choice of words Ford used during his speech, it’s alarming that Ford abandoned the word “affordable” in lieu of “attainable.” </p>
<p>Instead of applying a word that speaks to the economic side of the housing crisis, his script writer opted for a term that means achievable, realistic, manageable. </p>
<p>This is troubling because it indicates that Ford is actively shifting the discourse away from an already very loose concept of affordability to a terrain that is even less defined. </p>
<figure class="align-center ">
<img alt="A man in a suit waves from behind a podium" src="https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/469331/original/file-20220616-16-91hquj.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Ontario Premier Doug Ford, with his wife Karla, celebrates on stage after being re-elected premier of Ontario.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Nathan Denette</span></span>
</figcaption>
</figure>
<p>In February, Ford presented the <a href="https://news.ontario.ca/en/release/1001289/ontario-appoints-housing-affordability-task-force">Housing Affordability Task Force</a> report, recognizing the existence of the housing crisis and the need for urgent affordable housing. </p>
<p>However, despite acknowledging the need for more affordable rentals, the report failed to explain <em>how</em> exactly the province would achieve this. This is somewhat ironic, given the title of the task force. </p>
<p>In addition, <a href="https://theconversation.com/ontarios-affordable-housing-task-force-report-does-not-address-the-real-problems-176869">the report does not address some of the problems pertaining to housing</a> such as evictions, rent control and homelessness.</p>
<h2>Deepening housing crisis</h2>
<p>Statistics Canada defines housing affordability as <a href="https://www150.statcan.gc.ca/n1/pub/82-229-x/2009001/envir/hax-eng.htm">no more than 30 per cent of household income</a> being spent on housing-related expenses. </p>
<p>However, in the Greater Toronto Area and in Ontario broadly, there is a huge disparity between the rise of housing prices and household incomes. </p>
<p>The real estate market <a href="https://trreb.ca/files/market-stats/market-watch/mw2204.pdf">has witnessed a tremendous increase</a>. Since 2010, it has almost tripled, both within the Greater Toronto Area (to $1,254,436 from $431,262 in April 2022), as well as within Ontario (to $923,000 from $329,000 in 2021). </p>
<figure class="align-center ">
<img alt="A real estate sign on the lawn of a house" src="https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/469328/original/file-20220616-13-3n2541.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A sold sign is displayed in front of a house in the Riverdale area of Toronto in September 2021. One of the key reasons for the housing crisis in the Greater Toronto Area is the disparity between increasing housing prices and stagnant household income.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Evan Buhler</span></span>
</figcaption>
</figure>
<p>At the same time, <a href="https://www.ontario.ca/document/2016-census-highlights/fact-sheet-7-income">the average household income has increased only by about a third</a>. This disparity between increased housing prices and stagnant household income is the key reason for the housing crisis in Ontario, particularly in the Greater Toronto Area. </p>
<h2>Housing financialization</h2>
<p>Ford may have avoided the term affordable because the economic growth model in Canada depends on the conversion of housing from a human right <a href="https://books.google.ca/books?id=mnCKDwAAQBAJ&printsec=frontcover">into a financial investment tool</a> — a process known as <a href="https://theconversation.com/new-study-reveals-intensified-housing-inequality-in-canada-from-1981-to-2016-173633">housing financialization</a>.</p>
<p>Since the early 2000s, <a href="https://www.ingentaconnect.com/content/alex/benv/2021/00000047/00000003/art00007">Ontario has embraced this economic growth model</a> that prioritizes property speculation and real estate-driven economic growth. </p>
<p>Housing financialization has resulted in the creation of new housing projects for investment purposes, rather than <a href="https://doi.org/10.1080/07352166.2019.1705846">affordability and accessibility</a>. This economic growth model is the principle reason for the housing crisis in Ontario.</p>
<figure class="align-center ">
<img alt="A graph showing the different driving forces behind the Ontario economy" src="https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=270&fit=crop&dpr=1 600w, https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=270&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=270&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=340&fit=crop&dpr=1 754w, https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=340&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/467298/original/file-20220606-16-wzzgrl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=340&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Currently, real estate is the top driving sector of the Ontario economy.</span>
<span class="attribution"><span class="source">(Statistics Canada)</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Ford is an advocate of <a href="https://www.cbc.ca/news/canada/toronto/ontario-former-environment-greenbelt-chair-1.6009503">pro-development growth</a> and acts as an <a href="https://www.thestar.com/politics/political-opinion/2021/05/05/under-cover-of-covid-19-doug-ford-has-been-selling-out-the-environment.html">anti-environmentalist by advocating for more urban sprawl</a> in the form of more suburban housing. </p>
<p>The massive suburbanization process in the Greater Toronto Area will be accelerated through further <a href="https://doi.org/10.1080/02513625.2021.2026678">housing financialization</a>. Unless we force politicians to change the current economic model through policies, the housing crisis will continue to deepen.</p>
<h2>The need for a strong housing agenda</h2>
<p><a href="https://globalnews.ca/news/8752010/housing-canada-labour-shortage-cost-homes/">Increasing the housing supply</a> — the most commonly proposed scenario by all major parties to deal with the crisis, with the exception of the Green Party — will not solve the issue unless affordable housing supply is specifically increased.</p>
<p>While the general housing supply continues to grow, supported through policies from <a href="https://www.thestar.com/life/homes/opinion/2021/05/07/all-three-levels-of-government-must-work-together-to-solve-the-housing-shortage.html">all three levels of government</a>, there are no explicit policies in place for affordable housing.</p>
<p>As a consequence, housing prices continue to increase, or at least remain unaffordable, because adding supply does not automatically translate into <a href="https://www.cbc.ca/news/politics/housing-supply-home-prices-1.6434564">a decline of housing prices</a>.</p>
<p>Affordability can only be achieved with an ambitious plan that invests in affordable rental housing, similar to what was done between 1960-79 in Toronto, when <a href="https://files.ontario.ca/mmah-housing-affordability-task-force-report-en-2022-02-07-v2.pdf">66 per cent of all new housing was built as purpose-built rental units</a>. Since then, there has been little investment in this housing option. </p>
<p>Even though there are <a href="https://www.toronto.ca/community-people/community-partners/affordable-housing-partners/projects-under-construction/">some projects</a> from different <a href="https://pm.gc.ca/en/news/news-releases/2022/01/21/over-10000-new-affordable-homes-canadians">levels of government</a>, this is the only way to reduce the long list of <a href="https://www.toronto.ca/city-government/data-research-maps/research-reports/housing-and-homelessness-research-and-reports/social-housing-waiting-list-reports/">79,572 people waiting for affordable housing</a> in Toronto.</p>
<p>That is why all three levels of government need to be called into action, come together and develop an ambitious plan for affordable housing. We must resist Ford’s new term of “attainable” housing and with it, prevent him from abandoning the quest for truly affordable housing.</p>
<p><em>Seyfi Tomar, Secretary General of the International Real Estate Federation Canadian branch, co-authored this article.</em></p><img src="https://counter.theconversation.com/content/184103/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Murat Ucoglu receives funding from Mitacs. </span></em></p><p class="fine-print"><em><span>Ute Lehrer receives funding from SSHRC.</span></em></p>Canada’s current economic growth model is currently dependent on the conversion of housing from a human right into a financial investment tool, leading to an ever-worsening housing crisis.Murat Ucoglu, Postdoctoral Researcher in Urban Studies, York University, CanadaUte Lehrer, Professor of Urban Planning, York University, CanadaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1748802022-02-09T13:23:34Z2022-02-09T13:23:34ZDisasters can wipe out affordable housing for years unless communities plan ahead – the loss hurts the entire local economy<figure><img src="https://images.theconversation.com/files/442025/original/file-20220121-19-uqha1r.jpg?ixlib=rb-1.1.0&rect=0%2C13%2C3000%2C1980&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Slow recovery for vulnerable households can slow the recovery of the entire community.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/james-strickland-stands-on-the-porch-of-his-fathers-home-news-photo/1358601400">Scott Olson/Getty Images</a></span></figcaption></figure><p>The tornadoes and wildfires that devastated communities from <a href="https://www.cnn.com/2021/12/13/us/kentucky-tornadoes-storms-monday/index.html">Kentucky</a> to <a href="https://www.bouldercounty.org/disasters/wildfires/marshall/">Colorado</a> in the final weeks of 2021 left thousands of people displaced or homeless. For many of them, it will be months if not years before their homes are rebuilt.</p>
<p>That’s especially hard on low-income residents.</p>
<p>As a <a href="https://scholar.google.com/citations?user=hILMtUQAAAAJ&hl=en">professor of urban planning</a>, I study the impact of disasters on affordable housing, resilience and recovery. The losses of hundreds of homes in towns across the Midwest and in Boulder County, Colorado, show two sides of that impact and illustrate why communities need to plan now to protect their most vulnerable residents as their towns recover. In doing so, they also protect their economies.</p>
<h2>Why low-income households face higher risks</h2>
<p>Middle- and low-income households tend to occupy the riskiest homes in communities for a few key reasons.</p>
<p>First, land values tend to be lower in areas that are risky or otherwise less desirable, such as low-lying areas that are known to flood, near toxic facilities or in outlying areas that fail to enforce codes designed to protect homes. The housing that gets built there tends to be more affordable.</p>
<figure class="align-center ">
<img alt="A woman and teenager stand outside a damaged house." src="https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/442618/original/file-20220125-21-1lwxb0f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">‘It could happen anywhere, but I just never thought here,’ said Chasity Walton, whose home in Mayfield, Kentucky, was hit by a tornado on Dec. 15, 2021.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/chasity-walton-and-her-son-kvon-hardaway-walk-away-from-news-photo/1359227009">Brandon Bell/Getty Images</a></span>
</figcaption>
</figure>
<p>Second, as communities grow, older homes become more affordable through a process called “<a href="https://doi.org/10.1177/0739456X9101100106">filtering</a>,” where wealthier households move into newer housing, leaving older, more dilapidated homes available for lower-income households. Older <a href="https://doi.org/10.1177/0739456X14531828">homes were often built under less stringent building codes</a> and typically are less-well maintained, which can make them more physically vulnerable.</p>
<p>Third, durable patterns of historical segregation and ongoing discrimination in real estate and lending can compound these problems by limiting Black and Hispanic families’ ability to afford lower-risk neighborhoods.</p>
<p>Research has shown consistently that lower-income households are not only <a href="https://doi.org/10.1080/10511482.2011.624528">more likely to suffer damage in a natural disaster</a>, but they are more likely to take <a href="https://doi.org/10.1080/01944363.2014.980440">much longer – two to three times longer – to recover</a>.</p>
<p>Poverty and other household characteristics, such as being headed by a single mother, having racial or ethnic minority status, low levels of education, a disability, or renting rather than owning one’s home, define what <a href="https://www.taylorfrancis.com/books/mono/10.4324/9780203714775/risk-ben-wisner-piers-blaikie-terry-cannon-ian-davis">researchers call “social vulnerability</a>.” </p>
<figure class="align-center ">
<img alt="A man with a can sits on cabinets in what remains of his kitchen after a tornado. The roof and walls are gone." src="https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/442642/original/file-20220125-21-1fh4apn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Research shows that socially vulnerable households have less capacity to prepare for and respond to disasters.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/bogdan-gaicki-surveys-tornado-damage-after-extreme-weather-news-photo/1237193981">Brendan Smialowski/AFP via Getty Images</a></span>
</figcaption>
</figure>
<p>The location and quality of housing, combined with the vulnerability of residents, means that those most affected by disasters are often those least able to recover from them.</p>
<h2>Slow recovery affects the entire community</h2>
<p>Communities need to understand that slow recovery for vulnerable households can slow the recovery of the overall community.</p>
<p>Researchers have found that <a href="https://journals.sagepub.com/doi/abs/10.1177/0042098011428178">housing recovery is strongly linked to business recovery</a>. Workers need housing so they can return to work, and businesses need workers so they can resume operations.</p>
<p>Rockport, Texas, where Hurricane Harvey made landfall in 2017, offers a cautionary tale. <a href="https://www.texastribune.org/2018/08/24/hurricane-harvey-year-later-rockport-cant-find-housing-evacuees/">A year after the hurricane</a>, hotels and restaurants – even those that were part of national chains – struggled to reopen for Rockport’s critical tourist season due to the loss of affordable housing for workers. Many of those workers had relocated to San Antonio, two and a half hours away.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1476909270302027777"}"></div></p>
<figure class="align-center ">
<img alt="A man in sweatpants and no shoes appears distraught standing in the parking lot of a damaged motel." src="https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/442644/original/file-20220125-23-1p2rfah.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">When rental properties are destroyed by disasters, workers who keep local restaurants and businesses running often have little choice but to leave.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/resident-of-the-the-cardinal-inn-in-bowling-green-kentucky-news-photo/1237166139">Gunnar Word/AFP via Getty Images</a></span>
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<h2>Many homes can’t be replaced for the same price</h2>
<p>Housing recovery typically gets left to the market. For homeowning households with good insurance, the market works reasonably well. But for lower-income households, including renters, it can be difficult to return to their homes or even their original neighborhoods.</p>
<p>In depressed markets with low-value homes, like many of those impacted by the December tornadoes in Kentucky and the Midwest, replacement values are not enough to rebuild equivalent housing. Home values in these areas may average under US$100,000. It is nearly impossible to build a home for that today.</p>
<p>Hot markets like Boulder County, Colorado, face a different challenge. Rebuilding in those markets allows developers and speculators to take advantage of redevelopment opportunities. Research suggests that <a href="https://www.tandfonline.com/doi/abs/10.1080/01944363.2014.980440">affordable housing will almost always be replaced by more expensive housing</a> targeted to a wealthier demographic. And for low-income residents who rent and lose their homes to disasters, there is little chance that they will be able to return to their original development. Little is known about where they end up.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="An aerial view of a neighborhood mostly reduced to rubble with the exception of one home." src="https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/442645/original/file-20220125-21-klgkby.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The fire in Boulder County, Colorado, wiped out entire neighborhoods in December 2021.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/in-this-aerial-view-burned-homes-sit-in-a-neighborhood-news-photo/1237535171">Michael Ciaglo/Getty Images</a></span>
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</figure>
<p>Safety nets exist but are inadequate.</p>
<p>Short-term assistance from <a href="https://www.fema.gov/assistance/individual">FEMA’s Individual Assistance Program</a> helps displaced households find temporary housing and make repairs to homes that qualify. Assistance can also come from <a href="https://www.hud.gov/program_offices/comm_planning/cdbg">Community Development Block Grants</a> from the Department of Housing and Urban Development, but these funds take months and even years to arrive, and spending plans submitted by states often misdirect funds and have almost no oversight.</p>
<h2>What can be done?</h2>
<p>What then, can be done to ensure vulnerable residents can rebuild and return? A few communities have tried new ideas.</p>
<p>La Grange, Texas, which flooded during Hurricane Harvey in 2017, <a href="https://oaktrust.library.tamu.edu/handle/1969.1/189335">is experimenting with community land trusts</a>. These involve cooperative ownership of land coupled with individual ownership of units. Residents must occupy the unit for a prescribed period of time and gain only a small percentage of increases in land value, with the rest going to the co-op. This approach allows residents to pool resources for land purchases and maintains affordability over time.</p>
<p>Boulder County <a href="https://boulderreportinglab.org/2022/01/13/boulder-emergency-order-relaxing-rental-requirements-marshall-fire/">relaxed its rental rules</a> to help displaced residents find temporary homes after the fire. </p>
<p>Monitoring recovery funds closely is also important to ensure they help those most in need. Following the 2008 Hurricanes Ike and Dolly, the Texas Low Income Housing Information Service, now called Texas Housers, <a href="https://books.google.com/books?hl=en&lr=&id=r5C_DQAAQBAJ&oi=fnd&pg=PT10&dq=info:AMlQbxPM9eoJ:scholar.google.com&ots=JbwjyfHvXA&sig=MhBCeiKi6U0nNq20iUjE5Sf_qIk#v=onepage&q&f=false">sued the State of Texas</a>, claiming the state recovery plan failed to address the needs of the most vulnerable Texans. The resulting agreement brought an additional $3 billion in aid, and ongoing monitoring of funding has ensured it helped rebuild hundreds of homes for low-income families.</p>
<p>Nearly every community in the United States is increasingly vulnerable to some kind of natural disaster due to climate change. A Washington Post <a href="https://www.washingtonpost.com/climate-environment/2022/01/05/climate-disasters-2021-fires/">analysis of federal disaster declarations</a> found that 40% of Americans lived in counties that were hit with extreme climate-related weather in 2021 alone.</p>
<p>Planning disaster recovery to ensure that the most vulnerable members of communities can return will result in greater resilience and community vitality.</p>
<p>[<em>Learn more: Watch The Conversation’s <a href="https://youtu.be/VZrAENmklLk">climate change adaptation webinar</a> with Shannon Van Zandt.</em>]</p><img src="https://counter.theconversation.com/content/174880/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Shannon Van Zandt's research on housing and disasters has been funded by the National Science Foundation. She is also affiliated with Texas Housers as a member of the board; she receives no remuneration for this service.</span></em></p>The most affordable homes face the highest risks from disasters for three key reasons.Shannon Van Zandt, Professor of Architecture and Urban Planning, Texas A&M UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1698092021-11-25T20:34:50Z2021-11-25T20:34:50ZWant to solve the housing crisis? Address super-charged demand<figure><img src="https://images.theconversation.com/files/433526/original/file-20211123-19-sudh2d.JPG?ixlib=rb-1.1.0&rect=0%2C0%2C6016%2C4007&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A house in Ottawa that sold over the listing price. </span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Justin Tang </span></span></figcaption></figure><iframe style="width: 100%; height: 175px; border: none; position: relative; z-index: 1;" allowtransparency="" src="https://narrations.ad-auris.com/widget/the-conversation-canada/want-to-solve-the-housing-crisis-address-super-charged-demand" width="100%" height="400"></iframe>
<p>A <a href="https://nationalpost.com/news/canada/could-new-zealands-radical-new-housing-law-help-canada-curb-its-skyrocketing-real-estate-prices">recent news item about New Zealand’s radical new housing law</a> and whether such measures could work in Canada implies that soaring home prices are due to a lack of supply. </p>
<p>In its election platform, the <a href="https://liberal.ca/our-platform/1-4-million-new-homes/">Liberal party proposed to invest $4 billion in a municipal supply accelerator</a> aimed at building more housing. This is the wrong approach.</p>
<p>If policy-makers and the newly re-elected government want to improve housing affordability and the ability of young families to become homeowners, they need to turn their attention to the primary driver of price increases — <a href="https://financialpost.com/opinion/george-fallis-supply-isnt-the-whole-housing-problem-the-growing-demand-for-more-house-is-too">super-charged demand</a>, abetted by the sacred cow of <a href="https://www.cpacanada.ca/en/news/canada/2021-02-12-principal-residence-exemption">non-taxation of capital gains on a principal residence</a>.</p>
<p>A chorus of voices, <a href="https://www.theglobeandmail.com/business/article-things-are-heating-up-again-toronto-home-prices-climbed-in-october-as/">from bank economists</a> to the <a href="https://www.bnnbloomberg.ca/real-estate/video/canada-s-housing-market-faces-supply-shortage-economist%7E1725889">real estate industry</a>, perpetuate the argument that the primary cause of skyrocketing house prices is lack of supply. This view has been reinforced <a href="https://www.cbc.ca/news/canada/toronto/ndp-liberals-election-platforms-toronto-ontario-1.6161531">in media reporting, and was emphasized in recent election platforms</a>.</p>
<p>This “lack of supply” view draws on basic Economics 101 textbooks, where using the example of widgets and a simple supply and demand curve, an increase in supply causes a reduction in price. </p>
<p>But houses are not widgets. They are unique entities, both a basic need and, increasingly, an investment commodity. They are also fixed in location and their values reflect the attributes of the locales that purchasers value and are willing to pay a premium for.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/federal-election-2021-more-supply-wont-solve-canadas-housing-affordability-crisis-167620">Federal election 2021: More supply won't solve Canada's housing affordability crisis</a>
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</em>
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<hr>
<h2>Homes outpace households</h2>
<p>Nationally between 2006 and 2016, Canada added 1.636 million households and built 1.919 million new homes, according to the <a href="https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3410013501">Canada Mortgage and Housing Corporation</a> and <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/171025/dq171025c-eng.htm">Census data</a>. So, on average, almost 30,000 extra homes were constructed each year compared to the increase in the number of households.</p>
<figure class="align-center ">
<img alt="A graph shows the differences between homes and households in Vancouver, Toronto, Ottawa and Montréal from 2006 to 2016" src="https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=363&fit=crop&dpr=1 600w, https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=363&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=363&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=456&fit=crop&dpr=1 754w, https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=456&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/433263/original/file-20211122-17-5xh2tg.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=456&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Homes versus households in major Canadian cities between 2006 and 2016, according to Canada Mortgage and Housing Corporation and Census data.</span>
<span class="attribution"><span class="source">(CMHC/Census data)</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>In Vancouver, new construction exceeded household growth by 19 per cent. In Toronto it was one per cent, and Ottawa fell short of household growth by four per cent. </p>
<p>So, in theory, between 2006 and 2016, we should have seen the greatest price growth in Ottawa and less price pressure in Vancouver. But prices increased by 93 per cent and 96 per cent in Vancouver and Toronto respectively, but by only 47 per cent in Ottawa. </p>
<p>Insufficient supply may be a contributing factor, especially in cities where household growth exceeds new home construction, but it’s not the primary or most important cause.</p>
<p>The more significant cause is demand — and not just the quantity of demand, but the quality of demand. </p>
<p>Over the last few decades we have seen a new phenomenon of super-charged demand created by households that have substantial accumulated equity from persistent appreciation in their home values, combined with strong income growth and declining and historically low mortgage rates.</p>
<h2>Homeowners trade up</h2>
<p>In Canada, <a href="https://creastats.crea.ca/en-CA/">we sell approximately 700,000 homes per year</a> via resales plus <a href="https://www03.cmhc-schl.gc.ca/hmip-pimh/en#TableMapChart/1/1/Canada">newly constructed homes</a>. There are 14 million households, so this represents only five per cent of all households. </p>
<figure class="align-center ">
<img alt="Two construction workers work on the roof of a house being built" src="https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=420&fit=crop&dpr=1 600w, https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=420&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=420&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/433532/original/file-20211123-13-1jsakcc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">New homes are built in a housing construction development in the west end of Ottawa in May 2021.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Sean Kilpatrick</span></span>
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</figure>
<p>Many of these buyers are existing owners who are trading up. Only a quarter to one-third of buyers are first-time buyers (most in higher income brackets and with <a href="https://www.theglobeandmail.com/investing/personal-finance/article-parents-gave-their-adult-kids-more-than-10-billion-to-buy-houses-in/">parental help</a>). It’s the larger group — buyers who are trading up — that has the capacity to pay these high prices. <a href="https://www.rentalhousingbusiness.ca/cmhc-and-stats-canada-release-foreign-buyer-numbers/">Certainly a small percentage of them may also be foreign buyers</a> and <a href="https://toronto.ctvnews.ca/first-time-home-buyers-in-toronto-being-pushed-out-by-investors-1.5678556">some are investors</a>, but most are just regular households. </p>
<p>Many existing owners have <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-data/data-tables/household-characteristics/real-median-household-income-after-tax-tenure">incomes well above the median</a>. They also have substantially increased purchasing power from <a href="https://www.cbc.ca/news/business/mortgage-pre-approval-1.6242958">historically low interest rates</a>, and substantial wealth from unearned windfall gain created by years of rising prices. </p>
<p>More significantly, they undermine the concept that added supply will stall or slow the rate of pricing increases. All cities have coveted properties in desired neighbourhoods — often modest, older dwellings on sizeable lots. Because of the prime location, homes for example in inner-city Vancouver might sell for between $2 million to $3 million or in Ottawa perhaps for $800,000. </p>
<p>Developers often buy those lots, demolish the existing home and replace it with two or three contemporary new homes. The pricing will reflect the values that consumers attribute to that area, inevitably exceeding the original home price. </p>
<h2>The role of developers</h2>
<p>In central Ottawa, for example, <a href="https://www.agentinottawa.com/stats/">existing modest homes are being purchased for $600,000 to $700,000, demolished and replaced</a> with a semi with each side selling for $1.2 to $1.4 million. </p>
<p>The same thing is occurring <a href="https://www.vancouverisawesome.com/courier-archive/news/almost-1000-homes-per-year-slated-for-demolition-in-vancouver-3026242">all across the country</a>, with new homes priced well over — as much as double — what the price would have been for the existing house. That older house would have been moderately affordable to a young family if they hadn’t been outbid by the developer.</p>
<figure class="align-center ">
<img alt="A construction worker carries lumber on the roof of a home mid-build." src="https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=392&fit=crop&dpr=1 600w, https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=392&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=392&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=493&fit=crop&dpr=1 754w, https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=493&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/433534/original/file-20211123-27-7x7x79.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=493&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Builders work on a new home build in North Vancouver, B.C.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Jonathan Hayward</span></span>
</figcaption>
</figure>
<p>Clearly this form of intensification (<a href="https://www.realestatemagazine.ca/end-exclusionary-single-family-zoning-says-orea/">the rezoning the exclusive single-family neighbourhoods</a>) and expanded supply will do nothing to stall or slow price growth, especially given the demand from buyers with accumulated wealth seeking properties in these locations. More supply, therefore, doesn’t mean lower prices.</p>
<p>So if super-charged home purchasing power is driving up home prices, not insufficient supply, then the necessary policy response must aim to stall or suppress this demand by confiscating part of the windfall gain of accumulated appreciation. </p>
<p>This means taking on the sacred cow taxation of capital gains on homes — younger Canadians will thank them for it, and may even vote for the party that has the guts to do it.</p><img src="https://counter.theconversation.com/content/169809/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Steve Pomeroy is affiliated with the Canadian Housing Evidence Collaborative (CHEC) at McMaster, which is funded under a SSHRC/CMHC grant. </span></em></p>More housing supply doesn’t mean lower prices. If policy-makers want to make homes more affordable, they must tackle developers who drive up prices and consider taxing capital gains on homes.Steve Pomeroy, Industry Professor, Department of Health Aging and Society, McMaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1390392020-06-08T19:48:43Z2020-06-08T19:48:43ZThe housing boom propelled inequality, but a coronavirus housing bust will skyrocket it<figure><img src="https://images.theconversation.com/files/339683/original/file-20200604-130951-cnpdbv.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5742%2C3440&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">iStock</span> <span class="attribution"><span class="license">Author provided</span></span></figcaption></figure><p>A housing boom that lasted from the mid-1980s with only minor interruptions has <a href="https://theconversation.com/how-the-housing-boom-has-driven-rising-inequality-102581">added to rising income inequality</a> in Australia. Yet an impending housing market bust, triggered by the coronavirus pandemic and the resulting spike in unemployment, will not restore greater equality. On the contrary, recent history shows housing busts can <a href="http://web.stanford.edu/group/recessiontrends-dev/cgi-bin/web/sites/all/themes/barron/pdf/IncomeWealthDebt_fact_sheet.pdf">worsen inequality</a>. </p>
<p>Those who benefit most from a boom are not those who pay the price when it busts. And those harmed by the boom often become even more vulnerable during the bust. </p>
<p>Our analysis highlights the risks for people who bought their first home at the peak of the boom. We estimate 24,000 households are at very high risk because they took out large loans that might soon exceed their home value and also work in sectors with high job losses. Another 135,200 are at high risk and 121,000 are at moderate risk.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/how-the-housing-boom-has-driven-rising-inequality-102581">How the housing boom has driven rising inequality</a>
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</p>
<hr>
<h2>Coronavirus has set up a housing bust</h2>
<p>Experts have long cited an upsurge in unemployment as the main threat to house price growth. This risk became reality with the coronavirus pandemic. Over the seven weeks from mid-March to early May, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6160.0.55.001Media%20Release1Week%20ending%202%20May%202020?opendocument&tabname=Summary&prodno=6160.0.55.001&issue=Week%20ending%202%20May%202020&num=&view=">jobs fell by 7.3%</a>. </p>
<p>Unless employment rapidly recovers, the housing market is facing a major downturn. In one worst-case scenario released by the Commonwealth Bank, <a href="https://www.abc.net.au/news/2020-05-13/coronavirus-commonwealth-bank-house-prices-economy-unemployment/12241338">house prices could fall by up to 32% </a> over the next two years. </p>
<h2>Recent first-time buyers are most vulnerable</h2>
<p>Households that can hold on to their homes and weather the storm until the market recovers are not substantially harmed. Established owners, who bought their homes before or early in the boom years, have enjoyed the largest increase in their home values, and the largest reductions in their debt. This puts them in a position of relative resilience to a housing market bust.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-falling-house-prices-do-less-to-improve-affordability-than-you-might-think-111267">Why falling house prices do less to improve affordability than you might think</a>
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<p>In contrast, <a href="https://dra.american.edu/islandora/object/auislandora%3A70463/datastream/PDF/view">evidence from the 2008 housing crisis</a> in the United States shows which households are most at risk. These were households that bought their first home with no deposit, or a very low one, in the period leading up to the 2008 crash. The crash left these households “underwater”, trapped with an asset worth less than their mortgage debt. Many defaulted on their mortgages, fuelling the housing market’s downward spiral. </p>
<p>The Australian housing market and financial institutions differ from those in the United States in 2008 in fundamental ways. Still, Australian households that bought their houses at the peak of the boom and have now lost their jobs in the coronavirus pandemic are facing the highest risk. </p>
<p>These include 24,000 recent (2014-5 to 2017-18) first home buyers who borrowed over 80% of the value of their home and were employed in <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0">industries where jobs have now collapsed</a>. Another 135,200 recent first home buyers with high loan-to-valuation ratios are also at risk of going “underwater”, with homes worth less than their debt. Many of them are also in precarious employment, irrespective of the pandemic. (These figures do not include first home buyers in 2018-19, for which data are not yet available.) </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=264&fit=crop&dpr=1 600w, https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=264&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=264&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=332&fit=crop&dpr=1 754w, https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=332&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/337161/original/file-20200523-124840-haxmey.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=332&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Recent first home buyers at risk in a COVID-19 housing bust.</span>
<span class="attribution"><span class="source">Source: Liss Ralston; data from ABS Survey of Income and Housing 2014-5 to 2017-8</span></span>
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<strong>
Read more:
<a href="https://theconversation.com/build-social-and-affordable-housing-to-get-us-off-the-boom-and-bust-roller-coaster-113113">Build social and affordable housing to get us off the boom-and-bust roller coaster</a>
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<h2>Renters’ relief could be short-lived</h2>
<p>Many private renters hope a housing downturn will translate into lower rents and perhaps give them a chance to buy their first home in a more affordable market. However, this is not always the case in a downturn. In the US from 2007 to 2009, despite declining house prices, <a href="https://www.urban.org/sites/default/files/publication/27011/1001550-Rental-Market-Stresses-Impacts-of-the-Great-Recession-on-Affordability-and-Multifamily-Lending.PDF">rental affordability stress has only increased</a>.</p>
<p>In Australia, the sudden decline in international students and short-term rentals has <a href="https://www.theage.com.au/national/victoria/inner-city-rental-vacancy-rate-nearly-triples-amid-covid-19-student-exodus-20200523-p54vri.html">increased long-term rental vacancies in some areas</a>. <a href="https://www.smh.com.au/national/nsw/a-very-good-time-to-upgrade-tenants-bag-bargains-as-landlords-drop-rents-20200523-p54vp9.html">Reports suggest</a> rents are going down, especially at the upper end of some rental markets. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/as-coronavirus-hits-holiday-lettings-a-shift-to-longer-rentals-could-help-many-of-us-134036">As coronavirus hits holiday lettings, a shift to longer rentals could help many of us</a>
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<p>However, in the longer run, the slowdown in housing construction will create supply shortages, leaving rental vacancies low and rents high. Many landlords, mostly “mum and dad” investors, have taken <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0020/16904/AHURI-Final_Report-296-Private-rental-in-transition-institutional-change-technology-and-innovation-in-Australia.pdf">large loans to finance their property investment</a>. They will need to keep rents high to hold on to their investment properties. </p>
<p>Lower house prices will enable some households to become home owners for the first time, after being locked out of the market during the boom years. These households could benefit from a coronavirus housing bust if the market then recovers. Even so, their gains will do little to change the overall trend of rising inequality made worse by the housing downturn.</p>
<h2>We need to flatten out booms and busts</h2>
<p>Improved housing affordability is necessary to reduce social and economic inequality. A housing downturn will reduce house prices. But this downturn, when coupled with rising unemployment, will not deliver greater equality, especially if it’s followed by yet another boom. </p>
<p>Australia has flattened the curve of COVID-19 infections. To be successful in reducing inequality, we need to flatten the curve of both booms and busts in the housing market cycle. And only a <a href="https://theconversation.com/coronavirus-lays-bare-5-big-housing-system-flaws-to-be-fixed-137162">thorough overhaul of national housing policy</a> will achieve that. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/coronavirus-lays-bare-5-big-housing-system-flaws-to-be-fixed-137162">Coronavirus lays bare 5 big housing system flaws to be fixed</a>
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<img src="https://counter.theconversation.com/content/139039/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ilan Wiesel receives funding from the Australian Research Council and Lord Mayor's Charitable Foundation. </span></em></p><p class="fine-print"><em><span>Liss Ralston has previously received funding from Lord Mayor's Charitable Foundation and AHURI.</span></em></p><p class="fine-print"><em><span>Wendy Stone receives funding from the Australian Research Council (ARC) and the Australian Housing and Urban Research Institute (AHURI). </span></em></p>You’d think falling housing prices might help people on low incomes, but history shows downturns often increase inequality. And many buyers who took out big loans during the housing boom are at risk.Ilan Wiesel, Senior Lecturer in Urban Geography, The University of MelbourneLiss Ralston, Urban Statistician, Centre for Urban Transitions, Swinburne University of TechnologyWendy Stone, Associate Professor, Centre for Urban Transitions and Director, Australian Housing and Urban Research Institute Swinburne Research Centre, Swinburne University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1370692020-04-24T03:32:56Z2020-04-24T03:32:56ZThe need to house everyone has never been clearer. Here’s a 2-step strategy to get it done<p>The COVID-19 pandemic has shown us our health is intimately connected to the health of the person next to us, and that everyone needs shelter. It has created unprecedented urgency about moving people who are homeless into emergency accommodation – for their health and ours. So what happens next?</p>
<p>Getting people into hotel and motel rooms and off the streets is a good thing, but these are stopgap measures. They don’t provide a home.</p>
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<strong>
Read more:
<a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385">6 steps towards remaking the homelessness system so it works for young people</a>
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<p>The rush to shelter people before the peak of the virus has been driven by a pressing need to protect us all. As the only seven-day-a-week mobile outreach service still operating in Victoria, <a href="https://www.launchhousing.org.au/">Launch Housing</a> has temporarily housed 800 people, half of whom were sleeping rough. So what will happen to them and the thousands of other Australians in emergency accommodation when social-distancing restrictions ease and our world returns to something resembling normal? </p>
<p>Will they exit back into street homelessness to become the face of fear and stigma, while the rest of the community returns to more social activities? </p>
<h2>A way to find homes right now</h2>
<p>Australia has a significant but solvable homelessness problem, so let’s start solving it right now.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=1046&fit=crop&dpr=1 600w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=1046&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=1046&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1314&fit=crop&dpr=1 754w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1314&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/330009/original/file-20200423-47804-1m369kz.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1314&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><span class="source">Image: AAP</span>, <span class="license">Author provided</span></span>
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<p>To avoid people being deposited back onto the streets, we’re asking state and territory governments to fund a rapid spot-purchasing program. The Victorian government has done it before on a smaller scale in 2016, and it worked. It’s time to do it again, but on a bigger scale and around the country.</p>
<p>The spot-purchasing program would fund community housing agencies to enter the property market to buy up “distressed” or cheap housing assets. These properties would be let at below market rent to people who pay 30% of their income as a social rent.</p>
<p>Vendors and developers would get <a href="https://www.domain.com.au/news/price-cuts-on-the-rise-as-vendors-rush-to-sell-in-coronavirus-pandemic-950402/?utm_campaign=strap-masthead&utm_source=the-age&utm_medium=link&utm_content=pos5&ref=pos1">much-needed sales</a> and thousands of people would get a home. Taxpayers would get an enduring social benefit for years to come, as expensive nightly motel bills – without any long-term benefit – get converted to community-owned property assets. </p>
<p>We estimate the program would cost about A$210 million in Victoria and a similar amount in other states. It <a href="https://theconversation.com/supportive-housing-is-cheaper-than-chronic-homelessness-67539">costs more to treat street homelessness than it does to fix it</a>. So, it makes economic and social sense to put the fix in now. </p>
<p>This is our mirror moment. We simply can’t afford to drop people when no one is looking and attention turns elsewhere. </p>
<p>People in emergency accommodation can’t wait years for new housing to be built. They (and we) need those homes now while longer-term solutions are developed.</p>
<h2>Meeting rising needs in the longer term</h2>
<p>Many people who are not homeless have lost jobs or had their work hours cut, and are facing their first-ever brush with housing insecurity. They are struggling, paying more than 30% of their income for housing.</p>
<p>There was a housing crisis before this latest upheaval, and these conditions haven’t changed. Rents were too high and there <a href="https://theconversation.com/australias-housing-system-needs-a-big-shake-up-heres-how-we-can-crack-this-130291">weren’t enough affordable homes</a>. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216">Growing numbers of renters are trapped for years in homes they can't afford</a>
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<p>The health and economic fallout from COVID-19 has exposed the urgent need for more homes that are cheaper to rent for people on moderate, low or no incomes.</p>
<p>Crucially, we are also calling for the Australian government to fast-track the building of more social and affordable housing as part of an economic stimulus package.</p>
<p>A national social housing stimulus package will help get people back to work, speed the recovery, give the building industry the confidence to retain more workers and put roofs over people’s heads.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/why-the-focus-of-stimulus-plans-has-to-be-construction-that-puts-social-housing-first-136519">Why the focus of stimulus plans has to be construction that puts social housing first</a>
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<p>Initiatives to fund the construction of new social housing could be rolled out quickly. The industry capacity is there to do it, in partnership with the community housing sector.</p>
<p>The early stages of the stimulus would bring forward maintenance and new construction projects that are already on the drawing board.</p>
<p>By targeting locations with transport and facilities but <a href="https://theconversation.com/coronavirus-puts-casual-workers-at-risk-of-homelessness-unless-they-get-more-support-133782">high levels of rental stress</a>, new social housing buildings can be built quickly and integrated well into local communities.</p>
<p>The stimulus should be designed to encourage new mixed housing models, including properties that are “<a href="https://theconversation.com/build-to-rent-could-shake-up-real-estate-but-wont-take-off-without-major-tax-changes-119603">built to rent</a>”.</p>
<p>It would increase the supply of social housing for households that are homeless, or at risk of becoming so, and would stimulate the building, maintenance and construction industry.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australias-social-housing-policy-needs-stronger-leadership-and-an-investment-overhaul-119097">Australia's social housing policy needs stronger leadership and an investment overhaul</a>
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<h2>A building-led recovery</h2>
<p>The program would build on the <a href="http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf">Social Housing Initiative</a> that was launched in response to the 2008 Global Financial Crisis. Some 20,000 new social housing units were built throughout Australia. </p>
<p>This time, we think it is possible to deliver 30,000 new units. Community housing organisations could raise extra private finance to build another 5,000 homes.</p>
<p>We’ll need this <a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">social infrastructure</a> more than ever after the pandemic. <a href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216">Rental stress</a> and <a href="https://theconversation.com/6-steps-towards-remaking-the-homelessness-system-so-it-works-for-young-people-136385">homelessness</a> are increasing and the <a href="https://www.anglicare.asn.au/research-advocacy/the-rental-affordability-snapshot">lack of low-price rental housing</a> are issues we can no longer ignore.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/is-social-housing-essential-infrastructure-how-we-think-about-it-does-matter-110777">Is social housing essential infrastructure? How we think about it does matter</a>
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<p>The pandemic has created some very real challenges, but it also creates some unique opportunities to accelerate progress on ending homelessness, to recognise our interconnectedness and to give people the best possible protection of all – a home.</p>
<hr>
<p><em>This article was co-authored by Bevan Warner, CEO of Launch Housing.</em></p><img src="https://counter.theconversation.com/content/137069/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ron Wakefield is a board member of Launch Housing and non-executive chair of Tract. </span></em></p>Now is the time for a two-pronged strategy to ensure everyone has a home: a spot-purchasing program to find homes for people now in emergency accommodation, followed by social housing construction.Ron Wakefield, Professor of Construction, Deputy Pro-Vice Chancellor, International, and Dean, School of Property, Construction and Project Management, RMIT UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1164862019-06-18T13:06:39Z2019-06-18T13:06:39ZThree times citizens mobilised to put affordable housing on the political agenda<figure><img src="https://images.theconversation.com/files/279975/original/file-20190618-118522-jo0nqa.jpg?ixlib=rb-1.1.0&rect=0%2C284%2C5604%2C3535&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A rally for affordable housing in Vancouver, Canada. </span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/markklotz/18064275572/sizes/l">Mark Klotz/Flickr.</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>From <a href="https://www.bloomberg.com/news/articles/2019-01-10/amsterdam-house-prices-reach-record-as-expats-snap-up-homes">Amsterdam</a> to <a href="https://www.globalpropertyguide.com/news-philippines-in-the-7th-year-of-a-house-price-boom-3711">Manila</a>, <a href="https://www.total-slovenia-news.com/lifestyle/3612-ljubljana-s-property-market-continues-to-heat-up">Ljubljana</a> to <a href="https://www.tvnz.co.nz/one-news/new-zealand/wellington-property-market-hot-buyers-looking-further-afield">Wellington</a>, the rapid growth of property prices in cities is shutting many people out of home ownership and driving up inequality. There are plenty of ways for governments to deliver more affordable housing, including house-building programmes, taxation, planning and land use regulations. Yet their responses often fall short: government definitions of “affordable” homes <a href="https://torontoist.com/2016/11/how-affordable-is-affordable-housing/">aren’t affordable for most</a>, help-to-buy subsidies <a href="https://www.theguardian.com/money/blog/2017/oct/21/help-to-buy-property-new-build-price-rise">cause prices to rise further</a> and efforts to boost housing supply <a href="https://www.newshub.co.nz/home/politics/2019/05/pm-jacinda-ardern-refuses-to-stand-by-major-kiwibuild-goal.html">fall short of targets</a>. </p>
<p>One notable failure occurred in April 2019, when the New Zealand government backtracked on a proposed capital gains tax aimed at tempering speculation in the housing market. New Zealand has a strong case for action: house prices are the <a href="https://www.imf.org/external/research/housing/">third most expensive in the world</a>, the homelessness rate is the <a href="https://uk.reuters.com/article/uk-newzealand-economy-budget/left-behind-why-boomtown-new-zealand-has-a-homelessness-crisis-idUKKCN1IL0UM">highest in the OECD</a> and a quarter of children <a href="https://www.rnz.co.nz/news/national/386181/more-than-250-000-new-zealand-children-living-in-poverty-new-figures-show">live below the poverty line</a> – typically in poorly-insulated and overcrowded housing.</p>
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<a href="https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=521&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=521&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=521&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=654&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=654&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276370/original/file-20190524-187182-1ej90x1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=654&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The homelessness rate in New Zealand has increased by 25% since 2001, and is now the highest in the OECD. Source: Shaun Yeo Cartoons. All Rights Reserved.</span>
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<p>But the opposition deemed the tax to be an <a href="https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=12205867">assault on the “Kiwi way of life”</a>, the <a href="https://www.noted.co.nz/currently/politics/no-dice-the-unloved-capital-gains-tax/">media backlash</a> was unyielding, and New Zealand Prime Minister Jacinda Ardern promised <a href="https://uk.reuters.com/article/us-newzealand-politics-taxation/new-zealand-pm-ardern-surprises-with-decision-against-capital-gains-tax-idUKKCN1RT07O">never to pass the policy, while in leadership</a>.</p>
<h2>The politics of affordable housing</h2>
<p>Failures like this are usually explained by a <a href="https://www.theguardian.com/society/2015/feb/04/no-political-will-tackle-housing-crisis">lack of “political will”</a>. But this excuse simply sidesteps the biggest challenge for politicians: building consensus behind major reforms for the public good. All too often, government decisions to act (or not) are more about maintaining economic and political stability – preferably until the next election. Unless citizens lead strong campaigns to demand action, such reforms will remain in the “too hard” box. </p>
<p>The lack of affordable housing is not a crisis for everyone. Property owners <a href="https://neweconomics.opendemocracy.net/time-call-housing-crisis-really-largest-transfer-wealth-living-memory/">have benefited significantly</a> from the rapid growth in prices, creating highly unequal benefits across <a href="https://www.citylab.com/equity/2013/10/grim-math-working-class-housing-crisis/7321/">class</a>, <a href="https://www.citylab.com/equity/2017/09/how-housing-intensifies-the-racial-wealth-gap/540879/">race</a> and <a href="https://www.theguardian.com/commentisfree/2018/feb/15/generation-rent-housing-crisis-buy-to-let-first-time-buyers">generational divides</a>. Investing in housing is also a cultural norm: many Western cultures see it is as good financial sense to <a href="https://www.theguardian.com/money/2016/jan/14/why-are-brits-so-obsessed-with-buying-their-own-homes">get on the property ladder early</a>, and eventually sell at a much higher price to realise a healthy financial return. </p>
<p>This means that many Western countries have a large cohort of voters who are counting on house price growth – even when that shuts people out of the housing market altogether.</p>
<h2>Making change happen</h2>
<p>Yet in cities around the world, movements led by citizens are building power to counter these challenges. Here are three examples that show how support can be mobilised, when governments are slow to act. </p>
<p><strong>1. Organising grassroots movements in Berlin</strong></p>
<p>Grassroots movements have a long history in cities, and a recent case from Berlin is instructive. Berlin has a high proportion of renters (85%), and until the mid-2000s, it had a large stock of publicly-owned housing. After <a href="https://www.spiegel.de/international/beware-the-locusts-public-housing-sell-offs-on-the-rise-in-germany-a-446415.html">public housing was sold off</a> to private investors in the mid-2000s, tenants faced <a href="https://www.npr.org/2019/04/08/710956523/berliners-demonstrate-against-rent-sharks-in-fight-over-rising-rents?t=1558965988327">rapid rent increases</a> and significant issues with maintenance and repair. </p>
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<a href="https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276619/original/file-20190527-193540-17uoj3c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Public protests march against commercial landlords in Berlin.</span>
<span class="attribution"><span class="source">imago/Christian Mang</span></span>
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<p>Private companies bought public housing on a large scale - the largest landlord, Deutsche Wohnen, <a href="https://www.citylab.com/equity/2019/02/berlin-germany-housing-rent-how-much-price-landlord-policies/582898/">owns around 110,000 units</a> in Berlin. Initial efforts by tenants associations to oppose this were no match for the scale of the problem, so they co-ordinated to form the civic movement <a href="https://www.dwenteignen.de/">Deutsche Wohnen & Co. Enteignen</a> (“Expropriate Deutsche Wohnen & Co.”). </p>
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<a href="https://theconversation.com/berlins-grassroots-plan-to-renationalise-up-to-200-000-ex-council-homes-from-corporate-landlords-112884">Berlin's grassroots plan to renationalise up to 200,000 ex-council homes from corporate landlords</a>
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<p>The movement demands <a href="https://www.jacobinmag.com/2019/04/berlin-housing-referendum-tenant-organizing">a referendum</a> that could ultimately allow the municipality to renationalise housing belonging to landlords with more than 3,000 units. This directly confronts the powerful real estate sector, and has great potential to mobilise popular support in a city where renters are the majority. At the time of publication, their petition had more than <a href="https://www.dwenteignen.de/">77,000 signatures</a>. </p>
<p><strong>2. Building coalitions with technical professions - planners in 1960s New York</strong></p>
<p>Coalitions are the basic unit of urban politics. Building alliances around common agendas is a powerful way to mobilise resources, knowledge and political support. This even extends to professionals like architects and planners, who have historically engaged with communities to advocate for change. </p>
<p>The Urban Underground is a prominent movement that developed from New York’s Department of City Planning in the late 1960s. City planners realised that the profession had been co-opted into regeneration schemes that <a href="https://oxfordre.com/americanhistory/view/10.1093/acrefore/9780199329175.001.0001/acrefore-9780199329175-e-64">systematically pushed out</a> black populations and the poor. Protests by local communities and professionals <a href="https://books.google.co.uk/books/about/The_Urban_Underground_Resurfaces.html?id=XLmktgAACAAJ&redir_esc=y">shone a light</a> on these darker aspects of city planning. </p>
<p>Today, some planners are just as <a href="https://www.citylab.com/equity/2019/03/urban-planning-gentrification-capital-city-samuel-stein/585262/">complicit in systems</a> that profit real estate developers while causing gentrification and displacement. But with their experience in the system, planning professionals have the power to form a link between the diverse groups affected by unaffordable housing.</p>
<p><strong>3. Demanding system change with a Green New Deal</strong></p>
<p>The last strategy takes inspiration from the US <a href="https://www.history.com/topics/great-depression/new-deal">New Deal</a>, which overhauled the economy and social services in the 1930s. The <a href="https://theconversation.com/the-green-new-deal-is-already-changing-the-terms-of-the-climate-action-debate-112144">Green New Deal</a> draws from this approach by demanding fundamental changes to the economic system and building support around a <a href="https://theconversation.com/climate-strikes-greta-thunberg-calls-for-system-change-not-climate-change-heres-what-that-could-look-like-112891">vision for the future</a> to resolve trade-offs between economic, social and environmental policies.</p>
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<a href="https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/276592/original/file-20190527-193518-fitydt.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">‘System change not climate change’, the slogan of the climate justice movement.</span>
<span class="attribution"><span class="source">kris krüg/flickr</span></span>
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<p>The Green New Deal bundles climate action with green jobs, affordable housing and economic justice. Linking climate action to housing might seem unexpected, but in fact it’s central to goals of <a href="https://jacobinmag.com/2019/02/green-new-deal-housing-ocasio-cortez-climate">economic and social justice</a>. It could also be a genius move to wrap housing into the <a href="https://www.newyorker.com/news/daily-comment/notes-from-a-remarkable-political-moment-for-climate-change">growing political momentum</a> behind climate agendas.</p>
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<a href="https://theconversation.com/the-green-new-deal-is-already-changing-the-terms-of-the-climate-action-debate-112144">The Green New Deal is already changing the terms of the climate action debate</a>
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<p>Each of these movements show how change can happen, even when governments are reluctant to take political risks. When communities build support around a vision for housing that works for all – including <a href="https://www.theguardian.com/australia-news/2017/aug/20/we-are-begging-for-housing-the-crisis-in-indigenous-communities">indigenous populations</a>, <a href="https://www.dissentmagazine.org/article/how-real-estate-segregated-america-fair-housing-act-race">people of colour</a> and people <a href="https://www.huffingtonpost.co.uk/entry/cities-are-starting-to-pay-attention-to-the-eviction-crisis-thats-devastated-poor-tenants_n_5b1a7b21e4b0bbb7a0dbd59e">living in poverty</a> – they can forge a path for governments to follow.</p><img src="https://counter.theconversation.com/content/116486/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jenny McArthur previously received research funding from Auckland Council, and has worked as a consultant for local and national government agencies.</span></em></p>From Berlin to New York, citizens from around the world have shown that it is possible to get governments to make affordable housing a priority.Jenny McArthur, Lecturer in Urban Infrastructure and Policy, UCLLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/979472018-10-26T08:56:20Z2018-10-26T08:56:20ZLondon’s extraordinary surplus of empty luxury apartments revealed<figure><img src="https://images.theconversation.com/files/240783/original/file-20181016-165885-im00gl.jpg?ixlib=rb-1.1.0&rect=10%2C109%2C1525%2C1035&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/londonmatt/27291009916/sizes/l">Matt From London/Flickr.</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>More than 500 high-rise developments are <a href="http://www.newlondonarchitecture.org/whats-on/publications/all-nla-publications/nla-london-tall-buildings-survey-2018">in progress</a> across the city of London. For a nation in the grip of a housing crisis, this should be good news. But in reality, this will bring hardly any benefit for many of those seeking a decent home. Almost <a href="https://www.theguardian.com/society/2018/jun/08/high-life-student-becomes-one-of-centre-point-first-residents">none of the new homes</a> are reserved for people with no or low incomes and, although house prices in London <a href="https://www.ft.com/content/5998afd8-3106-11e8-b5bf-23cb17fd1498">are falling</a> – particularly at the upper end of the market – construction for wealthy people and international buyers continues. </p>
<p>Much of this building is actually intensifying the stress on the affordable housing market, as developers grab cheap land and resources that can be converted into expensive, for-profit housing construction. Many public housing estates have been demolished, while others threatened with demolition may be replaced by expensive rented housing and units for sale at <a href="https://architectsforsocialhousing.wordpress.com/2017/09/10/mapping-londons-estate-regeneration-programme/">eye-watering prices</a>. </p>
<p>London hosts <a href="http://www.worldpropertyjournal.com/real-estate-news/monaco/knight-frank-wealth-report-2017-top-global-cities-for-ultrahigh-net-worth-individuals-uhnwi-best-cities-to-live-in-for-billionaires-in-2017-city-wealth-index-liam-bailey-10302.php">the highest number</a> of super-rich individuals per capita of any city globally: around 3,100 residents are ultra-high net worth individuals (UHNWIs) – those with assets, not including property, of £20m or more. And a further 6,100 UHNWIs have second homes in the city. The 2018 Sunday Times rich list suggested there were <a href="http://uk.businessinsider.com/sunday-times-rich-list-2018-richest-people-in-the-world-by-net-worth-2018-5%5D">92 billionaires</a> in London.</p>
<h2>Abundance and austerity</h2>
<p>Affluent buyers continue to build and purchase property. In spite of the UK’s decision to leave the EU, more homes were sold in London at the £10m-plus mark in 2017 than in each of the preceding two years (435, 397 and 401 respectively, according to <a href="http://landregistry.data.gov.uk/">Land Registry data</a>). Yet the large flows of international investment capital and borrowing to buy into the “safe bet” that is London’s housing market <a href="https://www.theguardian.com/money/2018/mar/12/london-property-prices-plunge-as-brexit-effect-deepens">is being shaken</a> by anxiety about the potential impact of Brexit.</p>
<p>It seems perverse that London is incapable of providing for most of those who work in and maintain the city – whether in periods of economic abundance, or austerity. Capital investors, planners and the city’s various tiers of government appear increasingly disconnected from the human need for decent, affordable shelter. This has become a familiar story to Londoners and residents of other cities <a href="https://theconversation.com/investment-in-urban-land-is-on-the-rise-we-need-to-know-who-owns-our-cities-63485">such as New York</a>, which have been touched by investment capital lacking a sense of social mission or responsibility. </p>
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<img alt="" src="https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=438&fit=crop&dpr=1 600w, https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=438&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=438&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=550&fit=crop&dpr=1 754w, https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=550&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/230715/original/file-20180806-119621-fzvzwn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=550&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">High-cost homes in Kensington.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/klovovi/7710442204/sizes/l">Klovovi/Flickr.</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<p>In collating <a href="http://www.ijurr.org/article/necrotecture-lifeless-dwellings-and-londons-super%E2%80%90rich/">new research</a> on new-build luxury apartments and houses, I have found that many of the homes in these developments lie underused or vacant. Around <a href="https://www.ons.gov.uk/file?uri=/aboutus/whatwedo/programmesandprojects/theonsbigdataproject/modellingsampledatafromsmarttypeelectricitymeterstoassesspotentialwithinofficialstatistics_tcm77-408756(1).pdf">one in 20 homes</a> in Central and West London lies empty, according to the UK government’s statistics agency. A full <a href="https://www.london.gov.uk/moderngovmb/documents/s58641/08b2c%20University%20of%20York%20data%20report.pdf">89% of all new builds</a> in London are apartments, and between 2014 and 2016 around one in six of these was sold to overseas buyers – that’s 13%. </p>
<p>This figure rises to more than one-third of buyers, or 36%, if we look at the “prime” market areas of central London over the same period. Here, vacancy was measured by looking at homes with little or no “transactional data”, relating to finance, retail or other forms of administration, such as tax records and bills.</p>
<p>On this measure, we find that half of residences in new builds in general are empty, as are 19% of dwellings across London’s inner boroughs. The likelihood that a home is empty rises alongside its market value: 39% of homes worth £1m to £5m are underused, and 64% of homes worth more than £5m. Of the homes owned by foreign investors, 42% are empty. </p>
<h2>Housing for whom?</h2>
<p>The appearance of large numbers of essentially vacant luxury homes says a lot about the ability and motivation of authorities to address society’s need for housing. With roughly <a href="https://www.theguardian.com/business/2018/jan/26/ghost-towers-half-of-new-build-luxury-london-flats-fail-to-sell">a year’s worth of housing production</a> devoted entirely to the construction of luxury apartments – many of which are unsold – it seems fair to offer a damning verdict. </p>
<p>Yet for some, the city’s new architecture indicates a move in the right direction. <a href="http://www.zaha-hadid.com/people/patrik-schumacher/">Patrick Schumacher</a>, director of Zaha Hadid Architects, has <a href="https://www.dezeen.com/2016/11/18/patrik-schumacher-social-housing-public-space-scrapped-london-world-architecture-festival-2016/">argued for</a> public housing to be removed and for a deregulated, free-market approach to be the means by which housing is allocated in all cases. </p>
<p>Even while misjudging the views of the wider audience of these comments (London’s mayor Sadiq Khan, for one, <a href="https://www.standard.co.uk/news/london/top-architect-blasts-freeriding-tenants-living-in-council-houses-in-central-london-and-says-they-a3404711.html">slammed his ideas</a>), such notions nonetheless remain dominant among those who believe that the market should dictate what is built and where, with no concern for wider public value or contribution. </p>
<p>In a time of austerity, many local authorities appear to be seeking to reduce the cost and presence of low-income housing. In this context, expanding the role of private sector development may seem appealing. But it’s increasingly clear that allowing markets and profit motives to trump social concerns could lead to growing anger, given the failure to address the housing needs of low and moderate income groups. </p>
<p>Where inequality, austerity, a major housing crisis and Brexit will lead is not at all clear. It will take an injection of new thinking and a challenge to the dominance of markets and austerity measures, to tackle the housing crisis effectively.</p><img src="https://counter.theconversation.com/content/97947/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rowland Atkinson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>For a nation in the grips of a housing crisis, you’d expect high-rise developments to be good news – unfortunately not.Rowland Atkinson, Chair in Inclusive Societies, University of SheffieldLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/945812018-04-09T20:03:20Z2018-04-09T20:03:20ZEngland expects 40% of new housing developments will be affordable, why can’t Australia?<figure><img src="https://images.theconversation.com/files/213762/original/file-20180409-176974-mulfwg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Inclusionary planning has increased the share of affordable housing in San Francisco, even in areas which are gentrifying.</span> <span class="attribution"><span class="source">Alex Proimos/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/">CC BY-NC</a></span></figcaption></figure><p>Australia has <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/does-building-more-houses-fix-affordability-for-low-income-households">record levels of supply</a> of new properties but despite various government interventions, housing still remains unaffordable for many. </p>
<p><a href="https://www.ahuri.edu.au/research/final-reports/297">Our study</a> found the government could use more direct methods to deliver homes for people on low and moderate incomes, while leveraging the market. These methods, widespread across the United Kingdom and in major cities of the United States, are known as “inclusionary planning”.</p>
<p>This includes requiring developers to make a financial contribution towards affordable housing, or to dedicate completed dwellings, as part of the development approval process.</p>
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Read more:
<a href="https://theconversation.com/three-charts-on-poorer-australians-bearing-the-brunt-of-rising-housing-costs-87003">Three charts on: poorer Australians bearing the brunt of rising housing costs</a>
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<p>We studied the outcomes of inclusionary planning programs in parts of the United States and the United Kingdom, and more recent approaches in South Australia and New South Wales. </p>
<h2>What techniques can ensure affordable housing in the mix</h2>
<p>“Inclusionary zoning”, a common type of inclusionary planning, was first developed in the United States to counteract land use rules which excluded the lower end of the property market. For example, where rules would only permit large homes on single allotments. </p>
<p>Some states in the US have also adopted <a href="https://www.mass.gov/chapter-40-b-planning-and-information">“anti-snob” laws</a>. Under these laws, developers whose schemes include affordable housing can bypass local zoning controls, if an area has insufficient affordable housing for those on low and moderate incomes. </p>
<p>More recently, inclusionary planning programs are being used in many US cities in a bid to ensure that transport and infrastructure investment does not price out or displace lower income renters.</p>
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Read more:
<a href="https://theconversation.com/room-sharing-is-the-new-flat-sharing-84359">Room sharing is the new flat sharing</a>
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<p>There are now more than 500 inclusionary planning schemes operating in municipalities across the US. Some require developers to include affordable housing as part of development in a particular zone (usually a fixed percentage of units or floor space). </p>
<p>For example <a href="http://sfmohcd.org/inclusionary-housing-program">inclusionary planning programs</a> in the city of San Francisco, California (population of around 830,000) generate around 150–250 affordable units per year (around 12% of the city’s total supply). </p>
<p>Other schemes allow variations to planning rules in return for affordable housing. These variations might permit additional density in certain areas or waive certain requirements that would normally apply or expedite the development assessment process.</p>
<p>Other schemes require financial contributions from developers to offset the impact of a project on affordable housing demand or supply. </p>
<p>These programs provide a way for governments to ensure affordable housing for lower income residents even in rapidly gentrifying neighbourhoods.</p>
<h2>How this plays out in England and Scotland</h2>
<p>In England and Scotland, the supply of affordable housing is negotiated through the planning process. The general expectation is that 20 to 40% of new housing developments will be affordable. But proportions of affordable housing are allowed to vary on a case by case basis in light of the housing market and the costs of undertaking the development.</p>
<p>The main methods for this in England are <a href="https://www.local.gov.uk/pas/pas-topics/infrastructure/s106-obligations-overview">section 106 agreements</a>. These agreements, which come under the Town and Country Planning Act 1990, specify the amount and type of affordable housing to be provided as part of a development. </p>
<p>Section 106 agreements have steadily gained traction since the 1990s. Between 2005–16, 83,790 affordable dwellings were secured through these agreements in England. This included 9,640 new dwellings in 2015–16. </p>
<p>Section 106 agreements have resulted in different types of affordable housing, including social housing, discounted home ownership, share equity schemes and affordable rental housing (offered at 20% less rent than for comparable properties in the same local housing market).</p>
<p>Our study found that when inclusionary planning model requirements are predictable and applied in a consistent way, developers accept them because they can factor costs into the price paid for land. </p>
<p>We also found most models work in conjunction with other government funding or subsidies, extending the value of this funding by reducing the cost of land for social or affordable housing.</p>
<h2>What usually happens in Australia</h2>
<p>Only the South Australia and New South Wales governments have similar types of planning schemes in Australia, although there are signs that other states may follow. </p>
<p>The SA government’s <a href="https://www.sa.gov.au/topics/planning-and-property/land-and-property-development/planning-professionals/developer-responsibilities-for-affordable-housing">inclusionary planning target</a>, announced in 2005, aims for 15% of significant new housing developments to be affordable. </p>
<p>By 2016 more than 2,000 affordable homes had been built and a further 3,476 homes committed. This amounts to about 17% of new housing supply in South Australia. </p>
<p>In NSW, inclusionary planning schemes only deliver affordable rental housing. </p>
<p>In the mid 1990s an inclusionary zoning scheme pilot was introduced to Pyrmont and Ultimo. This scheme was then extended to <a href="http://www.cityofsydney.nsw.gov.au/development/planning-controls/affordable-housing-contributions/green-square-affordable-housing">Green Square</a>.</p>
<p>These schemes require that developers dedicate 0.8 to 3% of the floor area of developments for affordable housing, or that a monetary contribution be made in lieu of direct affordable housing provision. </p>
<p>However, to date, the NSW state government and many in the development sector have favoured voluntary mechanisms (such as density bonuses for providing affordable housing) over mandatory ones to supply affordable rental housing. </p>
<p>For our study, we estimated the volume of affordable housing delivered through voluntary planning agreements and state policy giving a density bonus for affordable housing inclusion by examining individual development approval records. </p>
<p>We found that voluntary measures have so far delivered about 1,300 dwellings or between 0.5 to 1% of Sydney’s housing supply between 2009 and 2017. </p>
<h2>How viable is inclusionary planning?</h2>
<p>We found that voluntary planning incentives can encourage affordable housing, but as part of incremental residential development, within the existing planning framework. </p>
<p>However, affordable housing should be mandated when land is rezoned for residential development, when planning rules are varied for particular projects, or following major infrastructure investment.</p>
<p>Inclusionary planning can’t replace government funding in providing housing for those on the lowest incomes. However, inclusionary planning schemes can reduce land costs and ensure that affordable homes are well located near jobs and services.</p><img src="https://counter.theconversation.com/content/94581/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicole Gurran receives funding from the Australian Housing and Urban Research Institute (AHURI). </span></em></p><p class="fine-print"><em><span>Catherine Gilbert receives funding from the Australian Housing and Urban Research Institute (AHURI). </span></em></p>Inclusionary planning schemes can reduce land costs and ensure that affordable homes are well located near jobs and services.Nicole Gurran, Professor of Urban and Regional Planning, University of SydneyCatherine Gilbert, Research Assistant and PhD Candidate, Urban Housing Lab, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/808952017-07-30T20:11:00Z2017-07-30T20:11:00ZDownsizing cost trap awaits retirees – five reasons to be wary<figure><img src="https://images.theconversation.com/files/179733/original/file-20170726-30108-h6wbsw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Add up all the neglected costs of downsizing and retirees have good reason to be wary of making the move.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/worried-senior-couple-checking-their-bills-388566784?src=AAHgc3E3V_gFUzd07Jphfg-1-0">wavebreakmedia from www.shutterstock.com</a></span></figcaption></figure><p>It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing.</p>
<p>Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. </p>
<p>It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face. </p>
<hr>
<p><strong>Further reading:</strong> <a href="https://theconversation.com/lack-of-housing-choice-frustrates-would-be-downsizers-60512">Lack of housing choice frustrates would-be downsizers</a></p>
<hr>
<p>The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. </p>
<h2>Reason 1 – upfront moving costs are high</h2>
<p>When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. </p>
<p>For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. </p>
<p>These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>. </p>
<h2>Reason 2 – levies are high</h2>
<p>Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. </p>
<p>Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments.</p>
<p>The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. </p>
<p>When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23322">must be paid</a>. </p>
<p>Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. </p>
<p>Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>.</p>
<h2>Reason 3 – costs of maintenance</h2>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=628&fit=crop&dpr=1 600w, https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=628&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=628&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=790&fit=crop&dpr=1 754w, https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=790&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/179734/original/file-20170726-30125-d2g2s8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=790&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Lift maintenance is one of many costs that suburban home owners needn’t worry about.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/man-hitting-elevator-653680081?src=LJc4V1Yb8nrTn7HULDVsyw-1-72">shutterstock</a></span>
</figcaption>
</figure>
<p>Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. </p>
<p>Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above.</p>
<h2>Reason 4 – loss of financial security</h2>
<p>It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. </p>
<p>Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. </p>
<p>Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs. </p>
<p>Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. </p>
<p>Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. </p>
<p>Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions.</p>
<h2>Reason 5 – loss of security of tenure</h2>
<p>Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.</p>
<p>There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. </p>
<p>Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age.</p>
<hr>
<p><strong>Further reading:</strong> <a href="https://theconversation.com/when-developers-come-knocking-why-strata-law-shake-up-wont-deliver-cheaper-housing-50971">Why strata law shake-up won’t deliver cheaper housing</a></p>
<hr>
<h2>Downsizing raises poverty risks</h2>
<p>Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. </p>
<p>Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs.</p>
<p>Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. </p>
<p>Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. </p>
<p>Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.</p><img src="https://counter.theconversation.com/content/80895/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Erika Altmann does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Retirees are often urged to downsize to free up suburban properties for the next generation and for higher-density development. What’s being ignored is the costs of moving into a unit or apartment.Erika Altmann, Property and Housing Management Researcher, University of TasmaniaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/799072017-06-23T03:53:07Z2017-06-23T03:53:07ZCo-housing works well for older people, once they get past the image problem<p>Housing Australia’s ageing population in homes that are affordable, accessible and sustainable presents a major challenge, particularly in a time of rising housing costs. </p>
<p>Older people want homes where they can feel comfortable and independent, and which allow them to remain connected to their family and friends.</p>
<p>However, many fail to anticipate the health and financial challenges that can diminish their housing choices as they age. With an emphasis on social interaction, environmental sustainability and accessible design, co-housing can provide an attractive housing option for seniors.</p>
<p>We set out to explore the potential of co-housing for seniors, in <a href="https://www.uts.edu.au/research-and-teaching/our-research/institute-sustainable-futures/our-research/social-change-4">newly released research</a> funded by the NSW Department of Family and Community Services and Office of Environment and Heritage. </p>
<h2>How does co-housing work?</h2>
<p>Co-housing is well <a href="https://assets.aarp.org/rgcenter/ppi/liv-com/fs175-cohousing.pdf">established internationally</a> as a housing option but relatively new to Australia. </p>
<p>Co-housing, or co-living, arrangements aim to mix private and shared living spaces in a way that meets the need for both privacy and a sense of community and support. Germany’s <a href="https://theconversation.com/reinventing-density-how-baugruppen-are-pioneering-the-self-made-city-66488"><em>Baugruppen</em> model</a> is a prominent international example. </p>
<p>Despite huge diversity in the size, density and design of co-housing, there are some common characteristics:</p>
<ul>
<li><p>First, the future residents are typically involved in the design process to ensure the final building meets their needs. </p></li>
<li><p>Second, the design includes some mix of private dwellings and shared spaces, and encourages community interaction. Shared spaces can be as minimal as a garden or laundry, or as extensive as a common kitchen, lounge and guest facilities. </p></li>
<li><p>Third, residents are usually actively involved in the governance of the property. </p></li>
</ul>
<h2>What did the research look at?</h2>
<p>Through initial interviews with stakeholders, we identified three different co-housing options that look particularly promising for seniors in Sydney:</p>
<ul>
<li><strong>Deliberative development</strong>, where the building designer actively enables participation by future residents in the design of a multi-unit building that they will eventually live in. Breathe Architecture <a href="https://theconversation.com/nightingales-sustainability-song-falls-on-deaf-ears-as-car-centric-planning-rules-hold-sway-50187?sr=3">pioneered this approach</a> with <a href="http://www.breathe.com.au/the-commons-1/">The Commons</a> in Melbourne, and <a href="http://nightingalehousing.org/">Nightingale Housing</a> is helping the idea to spread. While not aimed specifically at seniors, this model has great potential to deliver co-housing for seniors.</li>
</ul>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=425&fit=crop&dpr=1 754w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=425&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/175150/original/file-20170622-3037-12s52s2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=425&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Projects like the Austin Maynard Architects-designed Nightingale 3.0 development on Sydney Road in Melbourne’s Brunswick are changing the image of co-housing.</span>
<span class="attribution"><span class="source">Austin Maynard Architects</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<ul>
<li><p><strong>Co-operative tenancy</strong>, where residents form a housing co-operative to manage their tenancy of a building. <a href="http://www.commonequity.com.au/">Common Equity</a> is the leading proponent of this model in New South Wales, with 39 housing co-operatives established. This model is particularly attractive for private tenants, who are especially vulnerable to financial problems and social isolation.</p></li>
<li><p><strong>Small-scale co-housing</strong>, where an existing single dwelling is renovated to accommodate one to three dwellings. The <a href="https://theconversation.com/how-co-housing-could-make-homes-cheaper-and-greener-39235">Benn family home</a> is a great example. This model is appealing as a way of downsizing, or assisting children with their own housing challenges.</p></li>
</ul>
<h2>Barriers to acceptance</h2>
<p>We tested these three models in focus groups with seniors and found that co-housing has an image problem. The participants were keenly aware of the housing challenges that co-housing seeks to overcome. However, when we started to discuss co-housing, their thoughts immediately turned to hippies, communes and share houses.</p>
<p>This is unfortunate, because there are modern co-housing options that are perfect for the mainstream. These examples feature great design and balance between privacy and community.</p>
<p>We found that awareness of co-housing and its potential benefits was low. In particular, seniors resisted the idea of sharing living spaces.</p>
<p>Some said they had “done their time” and wanted to maintain their independence. They were worried that others would not “do their bit” to maintain the shared spaces. Others liked the idea of increased social interaction but were less enthusiastic about being involved in ongoing governance of the property. </p>
<p>Participants were quick to identify potential barriers to co-housing. These included local planning restrictions, securing finance, or impacts on their pension eligibility.</p>
<p>It is tempting to conclude that co-housing is a nice idea that lacks a market. A common refrain in our focus groups was: “It’s a nice idea, but not for me.” </p>
<p>However, in all these groups we found a small number of participants, perhaps 10-20%, who were enthusiastic about the idea. A market of 10-20% could make a very significant contribution to meeting our housing challenges.</p>
<p>We also discovered many groups that are working hard to establish co-housing, like the <a href="https://www.facebook.com/theAGEncyproj/">AGEncy Project</a> in Balmain. The market could be even larger if co-housing could overcome its image problems.</p>
<h2>How to win converts to co-housing</h2>
<p>We propose the following steps to start realising the potential of co-housing for seniors. </p>
<p>First, more people need to know that co-housing is an option. Raising awareness about co-housing and busting some of the myths about it are high priorities. </p>
<p>Our small contribution is a set of three <a href="http://bit.ly/2sqP7uR">factsheets on co-housing for seniors</a>. More demonstration projects are also badly needed, so people can see what it is actually like to live in co-housing.</p>
<p>Second, more needs to be done to link up the growing number of people who do want to live in co-housing. One of the biggest challenges is finding a group of people who have similar housing needs and aspirations. </p>
<p>Web platforms offer great potential here and some attempts to develop such platforms have already been made. For example, the <a href="https://www.henryproject.com/">Henry Project</a> is working on a Co-Living Network platform.</p>
<p>Third, governments can do to much to support co-housing and overcome existing barriers. For example, governments can provide financial support or access to land for demonstration projects. They can also ensure that planning regulations allow co-housing developments.</p>
<p>Finally, existing seniors’ housing providers can adopt the core ideas of co-housing in their developments. Retirement villages and aged care facilities typically include shared living spaces. Participation in design and governance is perhaps less common.</p>
<hr>
<p><em>For more information about co-housing for older people, read our <a href="https://www.uts.edu.au/research-and-teaching/our-research/institute-sustainable-futures/our-research/social-change-4">research factsheets</a>.</em></p><img src="https://counter.theconversation.com/content/79907/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Riedy receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p><p class="fine-print"><em><span>Kylie McKenna receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p><p class="fine-print"><em><span>Laura Wynne receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage. </span></em></p><p class="fine-print"><em><span>Matthew Daly receives funding from the NSW Department of Family and Community Services and the NSW Office of Environment and Heritage.</span></em></p>Older Australians are keenly aware of the housing challenges they face, but most are wary of co-housing due to the negative associations of shared living spaces.Chris Riedy, Associate Professor, University of Technology SydneyKylie McKenna, Research Principal (Business and Sustainability), University of Technology SydneyLaura Wynne, Senior Research Consultant, Institute for Sustainable Futures, University of Technology SydneyMatthew Daly, PhD Researcher at Institute for Sustainable Futures, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/758142017-04-19T11:21:52Z2017-04-19T11:21:52ZMetro mayors: ten ways to tackle poverty through housing policy<figure><img src="https://images.theconversation.com/files/165642/original/image-20170418-32703-1tjxcb2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/house-374194603?src=Cw04ijckrpzC8OZSDkbHHg-1-83">Billion Photos/Shutterstock</a></span></figcaption></figure><p>The new metropolitan mayors who are being elected in the UK in May will wield significant power. But can they do any better than their colleagues in Westminster when it comes to tackling poverty? Housing is perhaps one area where the new mayors will be able to make their mark.</p>
<p>Two years ago, researchers found that there was <a href="http://www4.shu.ac.uk/research/cresr/sites/shu.ac.uk/files/s3.s2.p3-gray-going-for-growth.pdf">“little consideration of social or environmental policy”</a> in the 38 city regional economic plans they reviewed. And further research in 2016 showed that <a href="https://www.jrf.org.uk/report/inclusive-growth-monitor">growth is not enough to secure falls in poverty</a>. But since then, the government has struck devolution deals with many city regions. This has enabled those areas to articulate a vision and argue for the freedoms, flexibilities and funding necessary to realise it. This provides new opportunities for city regions and the metro mayors to use these powers to tackle poverty head on. So what exactly can these new city regional bodies do to have an impact on tackling poverty? </p>
<p>In <a href="https://www.jrf.org.uk/report/tackling-poverty-through-housing-and-planning-policy-city-regions">our study</a>, funded by the Joseph Rowntree Foundation, we assessed the extent to which devolved institutions were using their new housing and planning capacities to meet poverty reduction objectives.</p>
<p>The study found that the interest in more “inclusive” growth has yet to be translated into firm strategies and policies for housing and planning designed explicitly to support poverty reduction. Instead, the primary focus is on increasing housing supply to attract the skilled workers needed to deliver growth.</p>
<p>But we also concluded that city regions have significant opportunities to ensure their ambitious growth targets include the delivery of new and genuinely affordable housing and a better deal for <a href="https://www.theguardian.com/housing-network/2015/jan/16/stop-talking-renting-choice-private-landlords">increasingly marginalised private renters</a>. </p>
<p>Here are ten ways that city regions can use devolution to support poor households in housing and planning policy, increase the stock of genuinely affordable housing and improve conditions in the private rented sector.</p>
<h2>Affordable housing</h2>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"848890013207154688"}"></div></p>
<ol>
<li><p>Combined authorities should use new planning powers – including the power to make new city regional plans – to make clear statements about the role of genuinely affordable housing in future housing developments.</p></li>
<li><p>Local authorities with the capacity to build affordable housing should get the funding they need to do so. Cross-boundary partnerships between city regions will open up possibilities to pool or trade the capacity within <a href="http://www.cih.org/resources/PDF/Policy%20free%20download%20pdfs/Voluntary%20code%20for%20a%20self%20financed%20HRA.pdf">Housing Revenue Accounts</a> so individual local authorities don’t max out their borrowing limits.</p></li>
<li><p>City regions need to dig deep and go far in deploying the land resources that they have available. This includes disposing of land at discounted rates to support affordable housing delivery.</p></li>
<li><p>City regions need to use devolution discussions to put in place a regeneration strategy for their areas. Grant funding will be critical in unlocking brownfield sites which are expensive to develop. City regions could go even further to ensure full alignment of transport, infrastructure and service investment to develop sustainable new communities and not just housing estates. </p></li>
<li><p>“Use it or lose it” measures, including compulsory purchase and levying charges on undeveloped sites, might unlock stalled projects where planning permission has been granted but where developers are not taking action.</p></li>
<li><p>City regions could set up non-profit lettings agencies to drive up quality in the unregulated private rental sector – where only voluntary reforms have so far been <a href="https://www.gov.uk/government/collections/housing-white-paper">promised by the government</a>.</p></li>
<li><p>Local authorities have insufficient incentives to enforce housing laws and maintain quality because revenues are paid directly to the Treasury. City regions could negotiate the right to keep fines and reinvest them in enforcing housing standards.</p></li>
<li><p>In some poor quality local rental markets it may make sense to negotiate with government to administer housing benefit more flexibly. The Local Housing Allowance rates could be set by reference to standards, with higher payments going to better landlords. </p></li>
<li><p>The political challenges of securing cross-boundary cooperation are all too real. But for metro mayors there is a distinct prize. Housing-related poverty is a local issue that will not go away on its own and smart mayors will get capital from distinguishing themselves from central government ineffectiveness in tackling the housing question.</p></li>
<li><p>The city regional political conversation must begin to articulate a convincing narrative beyond the current myopia on housing growth. Whitehall’s <a href="https://theconversation.com/why-housing-supply-shouldnt-be-the-only-policy-tool-politicians-cling-to-72586">sole fixation on numbers is wrong</a> but is being copied elsewhere. City regions can tackle the problem head on.</p></li>
</ol>
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<p>Our work has shown that there are huge challenges to come for the city regions. Most notably, those areas that need the most help to cut poverty may be left to get on with the job on their own, without the political capital and financial resources they need. But there is a good deal to be hopeful about, too. The opportunities for new metro mayors to respond to the issues facing towns and cities are great. And it can set them apart from the Westminster pack.</p><img src="https://counter.theconversation.com/content/75814/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ed Ferrari works for the University of Sheffield and receives funding from the Joseph Rowntree Foundation. He has advised Sheffield City Region and Leeds City Region LEPs on housing and planning issues.</span></em></p><p class="fine-print"><em><span>Richard Crisp works for Sheffield Hallam University and receives funding from the Joseph Rowntree Foundation to support research with LEPs and combined authorities on how they can tackle poverty and other forms of disadvantage.</span></em></p>It’s time for the regions to step up…Ed Ferrari, Senior Lecturer in Urban Studies and Planning, University of SheffieldRichard Crisp, Senior Research Fellow, Sheffield Hallam UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/710712017-02-01T23:29:38Z2017-02-01T23:29:38ZMake housing affordable and cut road congestion all at once? Here’s a way<figure><img src="https://images.theconversation.com/files/153346/original/image-20170118-26548-4lvvu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">This transit-oriented development in Oakland, California, combines residential housing with easy access to local transport options and amenities. </span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/neighborhoods/3158131357/in/photolist-5P5fqD-roR35E-qswdu1-gAumbA-4G1r74-amC8j1-bNzfVM-71dow2-bSmNRg-ppHDnR-jxPkpm-bSmRw8-bDsamj-8fsVFn-fukm9N-ecTUbc-fukkZb-dkLJvN-4w1YYt-q9hGL9-pRUwB8-dNdsjP-pEqtAr-pRUw1P-mT9HjW-6Pyksq-bCdcHP-4FALrM-pRVLA6-9btQhW-cosKY1-nby4TL-8mAjAZ-4G5ACC-bDs9DW-4FADip-3EWxPN-4G5Aob-82NqCw-rn71T2-apCiTB-7ySdZF-8fsUdv-q9hFBA-8RRepx-8fsWkv-5CfWvQ-pRMExo-fTxMnt-bzEJL3">Eric Fredericks/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>Two of the most pressing problems for Australian cities are housing affordability and traffic congestion. But there is an approach to both problems that could lead to significant improvements at low cost and relatively quickly. It involves developing <a href="https://en.wikipedia.org/wiki/Transit-oriented_development">transit-oriented centres</a> in conjunction with <a href="https://www.sgsep.com.au/publications/economic-merits-inclusionary-zoning-affordable-housing-sgs-occasional-paper">inclusionary zoning</a>. </p>
<p>This form of development gives priority to housing affordability and low car use. It does so by requiring a certain proportion of permanently affordable housing and dwellings without car parking, but with strong access to local facilities. Travel is mainly by walking and public transport. </p>
<p>At the same time, introducing a special rate on land, similar to existing council rates based on land values, and eliminating stamp duty on property transactions would make the market more efficient, reduce budget impacts and support infrastructure provision.</p>
<p>These measures will in no way completely solve our problems. But they would help increase Australia’s supply of affordable housing and reduce road congestion. </p>
<h2>Why is a two-pronged approach needed?</h2>
<p>A transit-oriented centre is relatively dense and primarily residential, with limits on parking. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=511&fit=crop&dpr=1 600w, https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=511&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=511&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=642&fit=crop&dpr=1 754w, https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=642&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/153349/original/image-20170118-26563-1vfl4zs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=642&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Reformed planning rules could require that residents have easy access to public transport and a range of facilities to meet their day-to-day needs.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/pasa/16430883062/in/photolist-r2Wz6h-rwF335-9wYGv5-rjkHjs-i1Aabs-bmk7EY-rATZYz-9ufECd-q352dL-9yPVUH-rANkGv-vW28x7-i6495b-kd6Gn-DutKoG-bSmNgR-kd6Gj-6jhqG8-q9aDVx-kd6Go-bDs3Po-cEpavY-i644yg-6SbQQN-bNzwpz-8fsMWX-bNzkfk-bzEAro-mT7W98-mT7XCR-661yd-5P5fqD-roR35E-qswdu1-gAumbA-4G1r74-amC8j1-bNzfVM-71dow2-bSmNRg-ppHDnR-jxPkpm-bSmRw8-bDsamj-8fsVFn-fukm9N-ecTUbc-fukkZb-dkLJvN-4w1YYt">Paul Sableman/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>Inclusionary zoning would require the provision of transit-oriented housing and good local infrastructure. To make a transit-oriented lifestyle possible, centres would have a range of facilities, like supermarkets, chemists and medical and childcare centres. Since these are essential for the system’s success, they are part of the local infrastructure.</p>
<p>The underpinning idea is to reallocate private spending on car travel to housing and a special rate for infrastructure. </p>
<p>Currently, the average car-dependent household’s transport costs total roughly <a href="http://www.smh.com.au/nsw/sydney-traffic/sydney-families-spend-22000-a-year-on-transport-report-20160821-gqxjpb.html">A$20,000 a year</a>. On the presumption that the equivalent transit cost would be about $10,000, the saving would be $10,000. This would be enough to service debt of about $330,000 (at 3% real interest). </p>
<p>The point of this rough calculation is to suggest that travel cost savings could be used to significantly increase our capacity to fund infrastructure and make housing more affordable.</p>
<p>Increasing dwelling densities and reducing the capital costs involved in providing parking and roads would also enhance affordability. Hence, in addition to increasing residents’ ability to pay for housing, there is scope for reducing the capital costs of housing. Restricting the demand for housing in centres to only transit-oriented households will reinforce lower land costs. </p>
<p>The parking restraint is not just to improve affordability. It also maximises the public benefit from reduced congestion by taking full advantage of a scarce resource, the transit-oriented centre. </p>
<p>Less road congestion is a public benefit arising from privately funded activities. Car use will detract from the social benefits. </p>
<h2>How does this increase efficiency?</h2>
<p>Market efficiency will be increased in two ways. First, eliminating stamp duty on property transactions and substituting a special rate on land would replace an inefficient tax with an efficient one. </p>
<p>Current arrangements are inefficient since stamp duty taxes new development, reducing the amount and increasing the cost. A special rate will share the tax and not disadvantage new development. Economists and developers have often supported this substitution.</p>
<p>The second way of increasing efficiency arises from prioritising development with wider social benefits, especially reduced road congestion. Currently, we do not have efficient pricing and subsidy mechanisms. Current arrangements tend to promote dispersed development and excessive car travel. Assisting transit-oriented centres would promote efficiency.</p>
<p>With a special rate, those benefiting from the infrastructure pay for it. Furthermore the proposed measures both create and capture benefits. Actually, some are not captured, and benefit wider society at no cost to them. Demands on state government budgets are reduced, while making implementation of centre infrastructure timely and effective.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=252&fit=crop&dpr=1 600w, https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=252&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=252&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=317&fit=crop&dpr=1 754w, https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=317&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/153350/original/image-20170119-26536-lp93o8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=317&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Many of the benefits of transit-oriented centres are actually marketable.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/jamesbondsv/15770991542/in/photolist-q2Cskh-qJqGK9-2fQtzH-rhoaYf-8yv9QR-HrPDgc-7eZUrG-dtYK8y-rANkLZ-7i8NLy-8fw2gu-cwmC4w-r2Wz6h-rwF335-9wYGv5-rjkHjs-i1Aabs-bmk7EY-rATZYz-9ufECd-q352dL-9yPVUH-rANkGv-vW28x7-i6495b-kd6Gn-DutKoG-bSmNgR-kd6Gj-6jhqG8-q9aDVx-kd6Go-bDs3Po-cEpavY-i644yg-6SbQQN-bNzwpz-8fsMWX-bNzkfk-bzEAro-mT7W98-mT7XCR-661yd-5P5fqD-roR35E-qswdu1-gAumbA-4G1r74-amC8j1-bNzfVM">Steven Vance/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<h2>Who gains and who loses?</h2>
<p>An obvious question is: who would be disadvantaged? The main impact would be on landowners who lose potential windfall gains. </p>
<p>Developers would not be disadvantaged; the changes would not prevent them from being able to make acceptable profits. Obviously, the proposed measures would restrict some possibilities, but the market would adjust to new prices and developers would still be able to choose projects fitting their investment criteria.</p>
<p>While restrictions would apply, developers would gain benefits from increased densities, besides those from removing stamp duty. </p>
<p>The proposed measures do not disadvantage state government budgets. Reduced expenditures on housing and infrastructure that is financed by special rates would offset the loss of stamp duty.</p>
<p>We need to think about urban development in a new way. Transit-oriented centres can be seen as a form of infrastructure – since they are an essential part of an efficient system – similar to engineering infrastructure. The proposed approach would complement the provision of engineering infrastructure, by capturing benefits used in their financing.</p>
<p>A critic may say the proposed measures add regulation and complexity. But this regulation is strategic; it aligns developer and public interests. </p>
<p>Criticism about additional complexity would be valid if such measures were unnecessary. That would be the case if our current system were delivering good outcomes, or we had adequate resources to fund good outcomes without any reforms. But this is not so. The problem is complex, with no simple answers.</p>
<p>The measures outlined above are innovative, but all are practical in not requiring major legislation or funding commitments. They are advanced to promote thinking about what can be done to gain more resources and produce better urban outcomes. Also, readers are invited to contemplate whether it is moral to not innovate, and to continue gifting away potential resources, while producing inferior outcomes.</p>
<hr>
<p><em>Acknowledgement: An earlier version of this piece was discussed with Professor Peter Phibbs and presented at a seminar he organised.</em></p><img src="https://counter.theconversation.com/content/71071/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Martin Payne is on the advisory board of the Henry Halloran Trust, which supports research and public debate on urban issues. </span></em></p>A combination of transit-oriented centres, inclusionary zoning and a special rate on land instead of stamp duty could make housing more affordable by cutting congestion, development and travel costs.Martin Payne, Casual Lecturer in Planning, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/606552016-07-08T15:01:16Z2016-07-08T15:01:16ZJust building more homes won’t fix the housing crisis – here’s why<figure><img src="https://images.theconversation.com/files/129879/original/image-20160708-24087-1fu8059.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/ramnaganat/7366802232/sizes/l">Natesh Ramasamy/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>In major cities across the globe – from <a href="http://indy100.independent.co.uk/article/londons-housing-crisis-in-13-property-listings--lkkRKVsjXe">London</a> to <a href="http://www.manilatimes.net/ph-housing-bubble-forming-expert/220920/">Manila</a>, <a href="http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11579043">Auckland</a> to <a href="http://www.latimes.com/opinion/editorials/la-ed-brown-affordable-housing-20160527-snap-story.html">Los Angeles</a> – housing is becoming less and less affordable. This has caused <a href="https://www.theguardian.com/society/2016/apr/30/uk-throes-of--housing-crisis">a great deal of angst</a> over house prices. But so far, politicians and the media have been much more effective at whipping up public anxiety, than putting in place actual solutions. </p>
<p>Over-inflated house prices are caused by more than just <a href="https://www.parliament.uk/documents/commons/lib/research/key_issues/Key-Issues-Housing-supply-and-demand.pdf">supply and demand</a>. Policy changes often focus too narrowly on increasing housing supply, by opening up more land for development and <a href="https://theconversation.com/the-rose-and-the-property-developer-a-cautionary-tale-on-the-perils-of-hasty-urban-planning-59765">speeding up the planning process</a>. Of course, supply is important. If more people want to buy houses than there are houses available then prices may be forced upward. </p>
<p>But it is not enough to address only one cause. Another major driver of price increases is a housing market “bubble”. A bubble can be detected when property <a href="http://www.economist.com/node/4079027">prices increase significantly faster than rents</a>. In investment terms, this means you’re buying a more expensive asset, but it doesn’t give a higher return from rental income. </p>
<p>When prices are rising rapidly, buyers tend to anticipate that this will continue, guaranteeing a tidy profit when they eventually sell the property. Add <a href="http://www.telegraph.co.uk/business/2016/06/01/mortgage-rates-fall-to-record-low-as-bank-of-england-mulls-rate/">record low interest rates</a> and the resulting abundance of low-cost debt means that house prices can easily become over-inflated, relative to people’s incomes. </p>
<p>The <a href="http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2013/shiller-facts.html">2013 Nobel Prize-winner</a> Robert Shiller theorised this buyer behaviour and called it “irrational exuberance”. Housing markets in many cities across the globe are stubbornly following Shiller’s theory. As a bubble grows, more people are priced out of the market for buying property, while the <a href="http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11608770">apparent urgency to get onto the property ladder</a> increases. Even if housing supply is increasing, the expectation of increasing property values will continue to drive this kind of behaviour in the market. </p>
<p>It is thought that London alone requires <a href="https://www.london.gov.uk/what-we-do/planning/london-plan/current-london-plan/london-plan-chapter-3-0/policy-33-increasing">42,000 new homes each year</a>, based on population estimates. Between 2001 and 2011, Greater London’s population <a href="https://www.london.gov.uk/sites/default/files/gla_migrate_files_destination/Fitting%20a%20Quart%20into%20Pint%20Pot%20-Ian%20Gordon.pdf">increased by 12.6%</a>, while housing supply grew only 7.5%. It is only physically possible to meet this demand by putting more people into existing houses, leading to overcrowding, which is <a href="http://www.childrensrightswales.org.uk/UserFiles/resources/no-space-at-home.pdf">harmful to health and well-being</a>. </p>
<p>So, building more houses won’t discourage irrational investment on its own. In fact, it might encourage more people to take on debt and invest in an over-valued housing market. If the bubble bursts – which would most likely be caused by a recession, or an increase in the cost of debt – prices will undergo a “correction”. Whether this correction is large or small, the financial impact on households and the threat to the stability of the national economy are significant. </p>
<h2>How to rent a home</h2>
<p>To diffuse this situation, we need to question our common assumptions about housing. The key role of housing is to meet the basic human need for safe and secure shelter. Housing policies mostly assume that home ownership is the only way to do this. </p>
<p>This idea has its roots in the post-war era, when governments <a href="https://www.theguardian.com/commentisfree/2008/apr/21/thehomeownershipideology">promoted the idea</a> of owning your own home, as the mark of financial security. Home ownership is not wrong – although households should seriously consider the risks of taking on large, long-term debts. But arguably, it isn’t an appropriate one-size-fits-all solution for cities in 2016. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/129442/original/image-20160705-791-brrmig.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Not ideal.</span>
<span class="attribution"><span class="source">from www.shutterstock.com</span></span>
</figcaption>
</figure>
<p>So, what other options do we have? For starters, better rental regulations could allow for long-term tenure and provide better protection for tenants. In Germany, <a href="http://www.independent.co.uk/property/house-and-home/why-the-germans-and-french-prefer-to-rent-2291077.html">only 39%</a> of the population owns their own home, compared with roughly 60% in the UK. </p>
<p>But they also rent under very different conditions to people in the UK. Local governments can limit the rate of rent increases, and <a href="https://england.shelter.org.uk/__data/assets/pdf_file/0019/392410/International_comparisons_briefing_v6.pdf">tenants have more rights</a> to occupy a property over a long-term period. These arrangements make renting a viable option for people looking for long-term accommodation, which frees up household income to invest in other assets, with lower risk. </p>
<h2>The real crisis</h2>
<p>There are even more inventive ways to emphasise the importance of access to shelter, over and above home ownership. For one thing, there are some creative and forward-thinking design solutions on show at this year’s “<a href="http://www.architectural-review.com/archive/home-economics-the-british-pavilion-at-the-venice-architecture-biennale-2016/10003239.fullarticle">Home Economics</a>” display, at the Venice Biennale. </p>
<p>But we also need to rethink the way we plan our cities. In reality, the housing crisis stems from the fact that house building is left largely to the private market. Private developments don’t always include smaller, more modest homes for low-income households as well as expensive homes for the wealthy (the latter are usually <a href="http://www.citylab.com/housing/2015/06/the-big-money-behind-tall-buildings/395690/">more profitable</a>). A <a href="http://www.ft.com/cms/s/0/4ea96f5e-bde6-11e4-9d09-00144feab7de.html#axzz4Dk9ceLCD">survey of developments</a> between 2014 and 2015 found that only 20% of the total number of homes built were deemed to be “affordable”. </p>
<p>Local governments require a certain share of new houses to cater to those on low incomes, but these affordable housing requirements are notoriously weak, too. In London, as little as <a href="http://homesforbritain.org.uk/a-damning-indictment-of-affordable-housing-in-london/">12% of dwellings</a> in new developments need to be “affordable” – a classification which allows rents as high as <a href="https://www.london.gov.uk/what-we-do/planning/london-plan/current-london-plan/london-plan-chapter-3/policy-310-definition">80% of market rate</a>. In some cases, the price of a home deemed “affordable” was equal to <a href="https://www.theguardian.com/society/2016/mar/15/london-record-low-new-affordable-housing-figures-show">30 times the average UK wage</a>.</p>
<p>Policies focused purely on expanding supply, without catering to different income groups, ignore the fact that cities depend on people who earn many different levels of income to provide key services. There are wider costs to society if cleaners, bar staff, creatives, cashiers and nursery assistants cannot afford to live in urban areas. Even if cheaper accommodation is available on the outskirts, this won’t offer a solution if commutes are long and costly. </p>
<p>We don’t know how or when the UK’s housing market bubble will burst, or how much prices might fall when it does. For the moment, those who don’t own property can take comfort in the fact that they aren’t taking on a mortgage in an overvalued property market. Meanwhile, leaders need to consider more innovative housing options, which focus on access rather than ownership. They need to provide meaningful alternatives for people on low incomes – or risk driving them out of our cities altogether.</p><img src="https://counter.theconversation.com/content/60655/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jenny McArthur receives funding from Auckland Council. </span></em></p>Clue: the UK needs to get over its obsession with home ownership.Jenny McArthur, PhD candidate, infrastructure investment, urban growth and liveability, UCLLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/603212016-07-05T05:31:12Z2016-07-05T05:31:12ZAre shipping containers really the answer for affordable housing? Time for a reality check<figure><img src="https://images.theconversation.com/files/126420/original/image-20160614-29209-yzzt4z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There's a lot to consider before you can be sure a shipping container home is your best affordable housing option.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/faircompanies/6023023420">Nicolás Boullosa/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p><a href="https://theconversation.com/infographic-australias-housing-affordability-problem-in-12-charts-43171">Housing affordability</a> issues in Australia have resulted in people looking for alternative ways to build accommodation more cheaply. A recent worldwide trend has been to convert shipping containers to liveable accommodation. However, some real challenges lie behind the rosy picture of turning shipping containers into homes. </p>
<p>From the perspective of recycling and environmental sustainability, it is a very good initiative. Many containers are on a one-way journey, mostly originating from China (the world’s manufacturing house), to the developed nations. These containers are used just once for shipping and then end up being used – if at all – as storage or portable office spaces. </p>
<p>Many companies are now offering to build container homes. One can find a great <a href="https://au.pinterest.com/explore/container-house-plans/">variety of interesting floor plans</a> to turn containers into housing. But the reality isn’t always as straightforward as these plans suggest. What are the main challenges to consider?</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/yG6UmBBtspY?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Container homes: the rosy view of the upmarket version.</span></figcaption>
</figure>
<h2>Container quality and engineering sign-off</h2>
<p>Online videos and photos emphasise the benefits of recycling containers to build accommodation. However, a number of conditions must be met to ensure the house is structurally sound.</p>
<p>First, if the design requires cutting through the walls to put in windows or doors, it affects the structural integrity of the container. A structural engineer will be needed to develop an engineering drawing to ensure the house will be structurally sound. There is a cost associated with this activity, as with any other type of construction such as steel-frame housing, timber-frame housing or brick-and-tile housing.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=285&fit=crop&dpr=1 600w, https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=285&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=285&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=358&fit=crop&dpr=1 754w, https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=358&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/126426/original/image-20160614-18068-1glpidw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=358&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">You have to work within the dimensions of a shipping container, or add to the build cost by cutting and restructuring the metal cargo box.</span>
<span class="attribution"><a class="source" href="https://en.wikipedia.org/wiki/Shipping_container_architecture#/media/File:Container_housing.jpeg">Wikipedia</a></span>
</figcaption>
</figure>
<p>Further, many engineers are wary of signing off on used shipping containers, because it is more difficult to assess the structural state of these. They most often recommend using a brand-new container. This is another added cost, as the price of <a href="http://www.australiatrade.com.au/Shipping/ContainerSizeSales/">12-metre cube containers</a> starts from A$5,000, whereas a used container may cost $1,800. </p>
<h2>Health and safety</h2>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/126433/original/image-20160614-12948-1cggsfs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Many people are attracted by the green credentials of re-using shipping containers, but first one must ensure they’re not contaminated.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/inhabitat/2886761258/in/photolist-5p6pxQ-5p6khJ-b2i1Wg-is2Xqi-is24at-is2WQk-is2Cmj-is2DbA-is2Xiz-is2XPe-is2Cpf-is2CZo-is2msU-hjEkqs-is2mfj-hjEjkm-hjEf4L-bp1ngF-hjEeBd-hjEgMW-hjENdn-6fTHAN-hjEdTj-h2BHue-ehQAAu-ehQEmd-ehQxA5-ehQC81-ehj5LT-b2i3ZP-b2i2kV-ehj9LR-b2i1wK-b2i2s4-b2i3La-b2i22p-b2i3eD-b2i3Qp-b2i3xZ-5p26SF-5p28H8-5p6jPd-anpSqn-5p29cK-5p29ED-5p27m6-anpSm4-cF2qQN-5p27Pr-5p24pa">Inhabitat/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
</figcaption>
</figure>
<p>Health and safety concerns arise when it cannot be ascertained what was shipped using a second-hand container. </p>
<p>If human carcinogenic elements or harsh chemicals (which may have left invisible traces) were shipped in a container, one would not want to use that container to live in. </p>
<p>Ensuring this is not the case adds to the challenges of using a second-hand container. This is because tracing the cargos and journeys end-to-end across the full container lifecycle can be very difficult.</p>
<h2>Usable space</h2>
<p>Housing built from shipping containers is limited by <a href="http://www.australiatrade.com.au/Shipping/ContainerSizeSales/">their dimensions</a>. They are roughly 2.35m wide internally and commonly come in two lengths: 6m or 12m. </p>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=902&fit=crop&dpr=1 600w, https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=902&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=902&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1133&fit=crop&dpr=1 754w, https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1133&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/126035/original/image-20160610-5894-1ndktpp.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1133&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">You have to consider how to work with the space constraints of a 2.35m-wide container.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/onecoolhabitatcom/4439057205">one cool habitat/flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<p>One also needs to take into account internal stud work to put in drywalls, which can further reduce the width. A 2.35m width is already quite small for any room other than a shower or a bathroom. </p>
<p>To give an idea of how small, a king-sized bed is 1.83m wide. So there will very limited room to put bed side tables or dressing table. </p>
<p>If two containers are cut to create a 4.7m wide room, the space becomes too big for many purposes. If you need a smaller (or more common) width, you need to build a stud wall. That is another added cost.</p>
<p>Hence, the options for customising the container home are very limited if it is to remain affordable.</p>
<h2>Insulation and comfort</h2>
<p>Insulation is a very critical element of a comfortable lifestyle. The <a href="http://www.abcb.gov.au/Resources/Publications/NCC/NCC-2016-Complete-Series">Building Code of Australia</a> as well as the local shire or council are very conscious of insulation standards. </p>
<p>The shipping container is a basically a large steel box. Physics says steel will get hot in summer and cold in winter. To counter these natural effects, the <a href="http://www.containerhomeplans.org/2015/03/5-methods-to-insulate-your-shipping-container-home/">container has to be very well insulated</a>.</p>
<p>Now, the question is where to insulate: on the exterior, or the interior, or both? </p>
<p>Exterior insulation will be better because this will prevent the heat or cold reaching the metal and keep the internal environment comfortable. But putting external insulation on a container means having a stud wall frame or similar arrangement to hold the insulation in place, so that’s an additional building cost. </p>
<p><a href="https://renaissanceronin.wordpress.com/ceramic-insulation/">Ceramic paint insulation</a> is another option and it does offer some degree of insulation. Note, though, that most “before and after” studies have taken a dark-coloured container (such as red, green or blue) and shown the benefit when painting it with a white ceramic paint. The reduction in temperature is partly due to using white paint.</p>
<p>Container housing may be a viable alternative accommodation option. But it can be hard to know whether it will be significantly cheaper than any other ways of building a home without doing considerable research into what the housing requirements and design will involve.</p><img src="https://counter.theconversation.com/content/60321/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Vidyasagar Potdar does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Have you thought about usable space, re-engineering, structural integrity, contamination, insulation and comfort? If not, you need to before jumping into building a home from shipping containers.Vidyasagar Potdar, Director, Blockchain R&D Lab, Curtin University, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/562502016-03-16T13:10:53Z2016-03-16T13:10:53ZShould more of us be building our own homes?<figure><img src="https://images.theconversation.com/files/115127/original/image-20160315-9250-o3cv7o.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Vadim Ratnikov/Shutterstock</span></span></figcaption></figure><p>More and more people of all ages are unable to buy their <a href="http://www.thisismoney.co.uk/money/article-2968673/Homeownership-England-falls-2-hit-lowest-level-29-years-high-house-prices-lock-young.html">own home</a> in Britain, and there is no denying the country is in the grip of a nationwide housing crisis. </p>
<p>The main “solutions” <a href="https://www.gov.uk/government/publications/2010-to-2015-government-policy-homebuying/2010-to-2015-government-policy-homebuying">put forward by the government</a> so far have focused on how to encourage the house building industry to <a href="http://www.theguardian.com/money/2016/feb/25/uk-housebuilding-new-homes-construction-high-2008">build more homes, and faster</a>. But we need to move away from these traditional notions of developer-led housing and instead encourage more <a href="http://www.selfbuildportal.org.uk/">self-building</a>.</p>
<p>Already in Britain self-builders <a href="http://www.greenbooks.co.uk/the-green-self-build-book">build more homes</a> than the largest individual house-builder, but despite these figures, it is still considered a marginal activity and an individual choice rather than a potential <a href="http://www.planningresource.co.uk/article/1386094/measures-boost-self-build-impact-council-planning-teams">large-scale policy solution</a>. </p>
<p>This is short sighted because <a href="https://theconversation.com/tackling-the-housing-crisis-by-building-your-own-home-47435">self-build is a good way to develop more</a> appropriate housing which meets residents’ demands and desires while also being affordable. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/115154/original/image-20160315-9235-1h9jsxs.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Self building – coming to a hillside near you?</span>
<span class="attribution"><a class="source" href="https://www.pexels.com/photo/nature-sunset-cottage-sunrise-42152/">Stefan Stefancik/Pexels</a></span>
</figcaption>
</figure>
<p>In <a href="http://www.selfbuildportal.org.uk/latest-news/111-uk-should-follow-europe-in-right-to-self-build">European countries</a> self-build is the norm; in France and Belgium it accounts for about 50% of all new building and in Sweden about a third of new house building is self-built – compare that with England where the figure stands at <a href="https://www.jrf.org.uk/file/35697/download?token=japMTs9e">less than 10%</a>. </p>
<p>We are crying out for more self-build housing in Britain, not only as a way to address the housing shortage but also as a way to deliver <a href="http://www.theguardian.com/environment/2016/mar/04/when-it-comes-to-a-shift-to-low-carbon-energy-key-players-need-a-history-lesson">low carbon lifestyles</a> – something conventional house construction has failed to do. </p>
<h2>Close to home</h2>
<p>What is considered self-build varies <a href="http://www.selfbuildportal.org.uk/case-studies">internationally</a>, but it is generally when a resident has built all or part of their home, sometimes working with or employing others during the build. In Australia, for example, the term <a href="http://www.alternatedwellingshomes.com.au/">custom build</a> more accurately describes how a lot of new houses are built. </p>
<p>With custom build, a developer offers two or three design options and the customer chooses a design and the number of different rooms they want. The difference between self-build and custom-build is the level of resident responsibility, organising and interaction. But all varieties offer useful options for the provision of more affordable housing. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=420&fit=crop&dpr=1 600w, https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=420&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=420&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=528&fit=crop&dpr=1 754w, https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=528&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/115128/original/image-20160315-9279-gze7ps.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=528&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">How to build a house of straw.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/jcestnik/6941733087/in/photolist-c37fH-oyaCak-9ohP5e-ehW8ys-ehQnSa-ehW4vj-ehQm8a-ehQjAP-ehW6Ef-ehQkCD-ehQmoc-nDLgMX-5uCJk2-ehWr2L-9ohzvX-bwtLHM-ehWs11-ehQG4P-bfcUGv-bzqcpe-ehW73j-e5SdVE-ogXtTr-ogXvZR-ogWA3q-ogWAaQ-owpFJU-9okEjQ-9okMJy-92xHA1-9okNXj-ehQGRD-ehQGDM-ehVPTf-ehVQcQ-3EicUL-ogX2D3-ehVQyu-2BEHs-oyendG-9ohF8i-27kRTG-9ohJHF-7qbqur-iR4b7-9rC2xD-iR623-9rDtCw-4ztQF8-qTB3ZX">Jenny Cestnik/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<p>Many people build their own homes with limited building experience, but are keen to get involved because they get to choose the layout, materials and aesthetics of their home – plus self-build is often a much <a href="http://www.dailymail.co.uk/news/article-2450911/Grand-Designs-house-time-buyers--41k-3-bed-home.html">cheaper</a> way to get on the housing ladder. </p>
<p>With residents taking on all, or some of, the jobs themselves and moving away from reliance on the brick – the use of cheaper and quicker methods like <a href="http://www.designingbuildings.co.uk/wiki/Prefabrication">prefabricated systems</a>, <a href="http://www.criticalcactus.com/beautiful-recycled-homes/">reclaimed materials</a>, or <a href="http://www.bbc.co.uk/news/science-environment-31156579">straw-bales</a> can reduce costs and cut out the need for a company to make a profit.</p>
<p>The significant cost of land can be also mitigated with self-build by developing <a href="http://www.heraldscotland.com/news/13156583.Study_reveals_huge_benefits_of_community_land_ownership/">communal land ownership structures</a> that make it available for affordable housing. And costs can be lowered even further <a href="http://www.granby4streetsclt.co.uk/10-house-project">when a collective</a> builds homes, such as co-housing groups, who share the purchase of land, infrastructure and building. </p>
<h2>Building for the future</h2>
<p>Despite the low number of self-builds, Britain already has a broad variety of homes built in this way – from the large detached houses featured on programmes such as <a href="http://www.channel4.com/programmes/grand-designs">Grand Designs</a> to numerous <a href="https://www.homebuilding.co.uk/a-small-self-build-on-a-tiny-budget/">small homes</a> crafted from low-cost, natural or reclaimed materials. </p>
<p>In an attempt to create housing for local residents some <a href="http://www.selfbuildportal.org.uk/latest-news/350-plymouth-city-council">councils</a> have started to allocate land for self-build housing, and <a href="http://www.plotbrowser.com/plotbrowser.cgi?county=Pembrokeshire">others</a> have created exemptions in <a href="http://www.pembrokeshire.gov.uk/content.asp?id=4976">planning legislation</a> that allow certain forms of self-building in places normally denied building permission. </p>
<p>To tackle the housing crisis we need a complete rethink of the way we build houses in Britain. Self-building shouldn’t be for the reserve of the <a href="https://theconversation.com/tackling-the-housing-crisis-by-building-your-own-home-47435">mega rich</a>, or those looking for a project <a href="http://www.self-build.co.uk/efficient-low-cost-home-for-retirement">in retirement</a>. Instead young people, families, couples, anyone should be able to build their own home.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=448&fit=crop&dpr=1 600w, https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=448&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=448&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=563&fit=crop&dpr=1 754w, https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=563&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/115129/original/image-20160315-9265-b3i6lf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=563&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Shipping containers: homes of the future?</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/lorigami/3814074265/in/photolist-6P38p8-is2Xqi-is24at-5LDsTX-froGke-eEcivG-is2WQk-is2Cmj-kvGrjM-5FJ2uH-de124v-23rDNy-hjDPVK-67szwA-hjDLZK-bZYDgq-hjEeLE-nmpK1p-e7nKJB-ei1QU2-is2DbA-owEv5U-is2Xiz-is2XPe-is2Cpf-is2CZo-is2msU-is2mfj-7iYkJP-7iYmuZ-7iYm1M-7iYjXz-7iYkeZ-ei1QVM-7Lkq39-cLeUyY-hjEf8m-hjFfjF-7Lks4u-7Lkrgu-7Lkorj-hjEjkm-ny2oph-7LgsBa-oSTEKk-7LgrAa-7HrMek-7LkprS-7LkrZ1-7Lknim/">lorigami/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<p>We need to look to our European neighbours to learn a thing or two about self-building and shared ownership. We need to learn how to minimise the amount of materials required by building smaller individuals houses with shared communal space for gardens, laundry, workshops and storage. </p>
<p>And instead of purchasing freehold we could roll out more stakeholder ownership models – just like <a href="http://www.lilac.coop/">Lilac</a> in Leeds. At Lilac costs are linked to ability to pay and residents only pay a housing charge equivalent to 35% of their net income. Meaning the higher earners subsidise those on lower incomes. </p>
<p>With a rise in self-build housing we could build our way out of the current housing crisis – but maybe more importantly, we could also avoid a repeat of it in the future.</p><img src="https://counter.theconversation.com/content/56250/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jenny Pickerill received funding from The Winston Churchill Memorial Trust for the research on which this article is based. </span></em></p>The housing crisis has scuppered home ownership dreams for many across the UK, but there is another way to do things.Jenny Pickerill, Professor of Environmental Geography, University of SheffieldLicensed as Creative Commons – attribution, no derivatives.