tag:theconversation.com,2011:/uk/topics/unaffordable-housing-17601/articlesUnaffordable housing – The Conversation2024-03-14T20:32:41Ztag:theconversation.com,2011:article/2254252024-03-14T20:32:41Z2024-03-14T20:32:41ZHousing policies need to fully consider market dynamics to move beyond ‘tall and sprawl’ cities<p>The federal <a href="https://housingandclimate.ca/">Task Force for Housing and Climate</a> recently released its final recommendations for solving Canada’s housing crisis. The <a href="https://housingandclimate.ca/blueprint/">Blueprint for More and Better Housing</a> contains suggestions for adding new affordable and climate-friendly homes by 2030.</p>
<p>The task force was launched in September 2023 to help federal, provincial and municipal governments address housing affordability and the climate crises in Canada. The report is aimed at building 3.8 million new homes, in line with estimates of housing need from the <a href="https://www.cbc.ca/news/business/cmhc-housing-report-1.6965250">Canada Mortgage and Housing Corporation</a>.</p>
<p>However, the task force’s report recommendations fall short by failing to fully consider land and housing market dynamics. </p>
<p>Its recommendations could incentivize the building of overly-dense urban cores, perpetuating something called “tall and sprawl,” a term that refers to <a href="https://doi.org/10.3390/land12020434">development patterns in cities that have very high, dense urban cores</a> surrounded by large areas of lowrise housing.</p>
<h2>Protecting greenfield areas</h2>
<p>The report’s premise is on target in many ways. Considering <a href="https://climateatlas.ca/canadian-cities-and-climate-change">more than 80 per cent of Canadians live in cities</a> and most <a href="https://www.datalabto.ca/a-visual-guide-to-detached-houses-in-5-canadian-cities/">urban land is residential</a>, any effective urban climate solutions must consider housing.</p>
<p>The report argues that increasing urban density can help protect greenfield areas from being converted to housing. However, it doesn’t take into account that <a href="https://doi.org/10.1002/joc.2237">too-high urban densities — densely paved and without sufficient green space — can exacerbate climate impacts</a>. </p>
<p>This can intensify <a href="https://www.cbc.ca/news/canada/kitchener-waterloo/extreme-heat-report-university-waterloo-deaths-1.6426392">urban heat island effects</a>, a phenomenon where an urban area is warmer than surrounding areas, <a href="https://doi.org/10.1021/acs.est.2c09588">leaving households more vulnerable</a> during <a href="https://doi.org/10.1021/acs.est.1c00024">combined extreme heat and power outage events</a>.</p>
<p>The report recommends governments implement province-wide zoning rules to better manage urban development. But it also suggests eliminating zoning regulations that ensure new buildings leave space for <a href="https://theconversation.com/residential-green-spaces-protect-growing-cities-against-climate-change-183513">the green infrastructure that is essential to address climate challenges in our cities</a>, like trees that provide urban cooling and absorb stormwater. </p>
<p>These actions contradict the report’s excellent suggestion that municipalities should plan for 40 per cent tree canopy cover, which <a href="https://doi.org/10.1073/pnas.1817561116">research shows can help control daytime urban heat island impacts</a>.</p>
<p>Trees need places to grow and thrive, which is typically ensured by regulations like minimum setbacks, landscaping requirements and maximum building footprints. Without these measures, land and housing markets will likely overlook the importance of providing these public good aspects, <a href="https://doi.org/10.1016/j.jeem.2006.12.004">leaving buildings too close together</a> and <a href="https://doi.org/10.1016/j.agee.2003.09.007">encouraging sprawling development</a>.</p>
<p>Housing research tells us how households respond to too-dense, nature-deficient environments. We know that many households seek <a href="https://islandpress.org/books/missing-middle-housing#desc">“missing middle” housing</a>, which refers to medium-density, family-sized housing such as townhomes, duplexes and triplexes, and lowrise to midrise apartment buildings. </p>
<p>Without <a href="https://doi.org/10.1177/23998083231180610">this type of housing being built in the green and amenity-rich environments</a> they demand, <a href="https://doi.org/10.1016/j.jtrangeo.2020.102940">households will move further afield</a>, increasing pressures for greenfield conversion.</p>
<h2>De-incentivizing unaffordable housing</h2>
<p>The report encourages municipalities to <a href="https://www.theglobeandmail.com/opinion/article-public-lands-can-help-unlock-the-housing-crisis-and-our-governments/">build affordable housing on their own land</a>, facilitated by financing, to help them acquire new land. </p>
<p>This is <a href="https://theconversation.com/publicly-owned-land-should-be-used-for-affordable-housing-not-sold-to-private-developers-198654">a strategy that has wide support</a>, but it could backfire by adding fuel to already-inflated land values because it fails to acknowledge <a href="https://doi.org/10.1016/j.cities.2023.104676">how those inflated land values are created</a>.</p>
<p>Housing markets are more than builders who supply homes and residents who demand them. Markets for land, where housing is built and what homes are built are shaped by <a href="https://doi.org/10.3390/land12020434">investors who supply finance</a> and <a href="https://doi.org/10.3390/jrfm16100446">developers who demand finance</a>. </p>
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<a href="https://theconversation.com/housing-is-both-a-human-right-and-a-profitable-asset-and-thats-the-problem-172846">Housing is both a human right and a profitable asset, and that's the problem</a>
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<p>For the report’s strategy to succeed, additional policies must rein in investors and developers by de-incentivizing their participation and reducing their impact on land value.</p>
<p>The federal government can address this by <a href="https://mikemorricemp.ca/motion-71-one-solution-to-the-housing-crisis/">eliminating tax incentives for real estate investment trusts</a>. Provincial governments can implement requirements for a percentage of affordable homes <a href="https://housingrightscanada.com/resources/inclusionary-zoning-considerations-for-an-affordable-housing-policy/">(known as inclusionary zoning</a>) across municipalities — not just around transit stations — to prevent developers from leap-frogging regulation by building elsewhere. </p>
<p>Inclusionary zoning decreases <a href="https://theconversation.com/explainer-what-is-value-capture-and-what-does-it-mean-for-cities-58776">land value uplift </a>by reducing market developers’ profits, which creates an entry window for lower-cost and non-profit developers, as envisioned by the report.</p>
<p>The report’s recommendations to eliminate height and density restrictions near transit will further inflate land values. While building more units on a given piece of land might appear to lower housing costs, this is not the case.</p>
<p>At present, <a href="https://www.altusgroup.com/insights/canadian-cost-guide/">highrise development costs are roughly 2.5 times that of lowrise</a> and demand high finance costs to compensate for their high risk. Land values reflect these high costs and profits, especially in areas where highrise builds are expected to be allowed.</p>
<h2>Rethinking urban spaces</h2>
<p>How can these conflicts be resolved? One approach is to establish both minimum and maximum residential zoning heights and densities, aligned with the typologies the report supports. </p>
<p>This would include building 10-unit apartments that follow pre-approved designs in residential neighbourhoods, zoning that encourages <a href="https://www.thestar.com/news/gta/growing-up-toronto-planner-jennifer-keesmaat-pushes-for-lots-of-mid-rise/article_bd1cb649-3dea-5506-b672-e9ebd01b5bb6.html">desirable midrise developments</a> along main streets and creating 16-storey maximum zones to encourage the building of single-stairwell 16-storey buildings recommended in the report.</p>
<p>As <a href="https://www.vox.com/energy-and-environment/2020/1/15/21058051/climate-change-building-materials-mass-timber-cross-laminated-clt">mass timber buildings</a> and other climate-friendlier highrise forms develop, zoning regulations should adapt to enable these typologies to facilitate and reward affordable, <a href="https://www.nytimes.com/interactive/2023/09/18/world/asia/singapore-heat.html">climate-friendly builds</a>. There can still be a place for highrise buildings in well-designed cities, particularly if <a href="https://smartdensity.com/scaling-down-creating-walkable-and-enjoyable-transit-oriented-communities/">we reimagine how higrise and lowrise buildings can be combined</a> to create <a href="https://doi.org/10.1016/S0169-2046(02)00230-X">green and liveable cities</a>.</p><img src="https://counter.theconversation.com/content/225425/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Dawn Parker receives funding from the Social Sciences and Humanities Research Council, the Canadian Institutes of Health Research, the Natural Sciences and Engineering Research Council of Canada, Environment and Climate Change Canada, and Mitacs Canada</span></em></p>A new report on sustainable and affordable housing falls short by failing to fully consider land-and-housing market dynamics.Dawn Parker, Professor in the School of Planning, Faculty of Environment, University of WaterlooLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2219542024-02-04T13:33:44Z2024-02-04T13:33:44ZTwo-thirds of Canadian and American renters are in unaffordable housing situations<figure><img src="https://images.theconversation.com/files/572601/original/file-20240131-17-86e7f5.jpg?ixlib=rb-1.1.0&rect=55%2C30%2C4032%2C2811&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A new study has found that nearly two-thirds of Canadians and Americans are significantly rent-burdened.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><p>Even as housing markets cool in some areas, housing affordability in Canada is <a href="https://globalnews.ca/news/10167093/housing-affordability-bank-canada-index/">the worst in over four decades</a> due, in part, to sustained post-pandemic inflation and comparatively higher interest rates. </p>
<p>According to the Canada Mortgage and Housing Corporation — the federal Crown corporation responsible for administering Canada’s National Housing Act — affordability is defined as <a href="https://www.cmhc-schl.gc.ca/professionals/industry-innovation-and-leadership/industry-expertise/affordable-housing/about-affordable-housing/affordable-housing-in-canada">mortgage or rent payments that do not exceed more than 30 per cent of a household’s gross monthly income</a>. </p>
<p>If a family makes $50,000 per year before taxes, for instance, anything more than $15,000 per year (or $1,250 per month) spent on rent would put them in an unaffordable situation. </p>
<p>Unaffordable housing situations have been shown to have serious negative outcomes related to <a href="https://doi.org/10.1016/j.amepre.2010.08.002">communities’ health</a>, <a href="https://doi.org/10.1016/j.regsciurbeco.2018.07.001">crime rates</a>, <a href="https://doi.org/10.1080/0267303042000204296">homelessness</a>, <a href="https://doi.org/10.1080/10511482.2005.9521542">the well-being of children</a> and <a href="https://doi.org/10.1016/j.jhe.2020.101668">economic growth</a>. </p>
<p>Accordingly, younger generations are <a href="https://www.investopedia.com/millennial-homeownership-still-lagging-behind-previous-generations-7510642">deferring the homeownership dream</a> because of their inability to secure mortgage financing, limited entry-level homeownership options and insufficient incomes.</p>
<p>To date, most research and policy work has focused on homeownership, with little emphasis on understanding the current state of rental affordability. It is becoming increasingly important to address affordability, <a href="https://financialpost.com/real-estate/rents-climb-this-spring-supply-tightens-markets">as demand for rental housing has surged</a> since homeownership is becoming out of reach.</p>
<h2>Unaffordability is a growing concern</h2>
<p>As <a href="https://www.uregina.ca/business/faculty-staff/faculty/wilson-grant.html">economic and strategic management researchers</a>, we were curious about three things: the percentage of individuals or families that are in unaffordable rental situations, how household spending patterns have changed to make ends meet, and whether knowledge of rental economics impacts the likelihood of being in an affordable rental situation.</p>
<p>In our forthcoming study of over 1,000 renters in North America in 2023, we examined household income, monthly expenditures (e.g., rent, food, transportation, clothing, travel, etc.) and knowledge of affordability and basic economics. </p>
<p>We assessed affordability understanding by asking participants if they understood the 30 per cent expenditure rule through a series of questions. Renters were self-identifed and recruited via Prolific, the international survey panel.</p>
<p>By comparing the annual incomes and rental expenditures of households in our sample, results showed that 63 per cent of renters were in unaffordable situations. This means nearly two-thirds of Canadians and Americans are significantly <a href="https://doi.org/10.1177/0042098016665953">rent-burdened</a>.</p>
<p>Although we expected the results to indicate some unaffordability situations, we did not expect it to be this great. </p>
<h2>Solutions to rental crisis</h2>
<p>Our data confirms that unaffordability is not just a homeownership issue, but also extends to the rental market. Given that lasting unaffordability has both <a href="https://doi.org/10.1016/j.socscimed.2016.06.014">social and macroeconomic consequences</a>, it is critical that policymakers and industry leaders seek long-term fixes. </p>
<p>But solutions are complex and require a unified approach. Governments must ensure the rental housing supply is efficient to address the increasing affordability concern. </p>
<p>This means Crown corporations and government investments need to be more common. Additionally, civic policies need to promote new housing development and private investment.</p>
<p>For real estate organizations, the demand for affordable rental housing suggests the need to <a href="https://www.avenuelivingam.com/insights/retrofits-housing-supply/">invest in renovating existing accommodations to maintain adequate housing stock</a> and for developers to prioritize new, affordable rental solutions. </p>
<h2>The knowledge and rental affordability link</h2>
<p>One of the most interesting relationships we found in our data was related to “affordability knowledge” — or the expertise tenants have and use to make economical rental housing choices — and the percentage of income spent on rent. </p>
<p>Specifically, as affordability knowledge increased, the likelihood of being in an unaffordable rental accommodation decreased. The data suggests that the more people know about rental affordability, the better they can make informed rental decisions. This is noteworthy, as most of the recent emphasis has been on how governments, developers and landlords can make housing more affordable. </p>
<p>In addition to <a href="https://www.bnnbloomberg.ca/video/we-re-focussing-on-housing-affordability-for-essential-workers-avenue-living-ceo%7E2545781">affordability efforts by major players in the market</a>, affordability education has an important role to play and should be a top priority for policymakers. Investments in educational campaigns could improve household decision-making and rental affordability.</p>
<p>Historically, households have been good at <a href="https://doi.org/10.1017/s136898000700081x">prioritizing their needs versus wants</a> in economic crises. Unfortunately, our results showed that individuals and families are cutting back on more than just luxury items. </p>
<p>For instance, in all areas of spending, households in unaffordable situations are making budget cuts on everything from groceries to physical activities. In short sprints, these spending re-allocations can be justified and even credited as fiscal responsibility. </p>
<p>But over time, these changes can have <a href="https://doi.org/10.1080/10511482.2015.1020321">lasting health and wellness effects</a>. So while renters have an important role to play, the responsibility doesn’t just fall on their shoulders — strategies require participation from governments and developers as well.</p>
<h2>Where to next?</h2>
<p>Although the most straightforward path to rental affordability in Canada and the U.S. <a href="https://doi.org/10.1016/j.jue.2022.103427">relates to increasing supply</a>, such as increasing new rental stock, a holistic approach that includes educating renters on affordability and basic housing economics can also be beneficial. </p>
<p>However, this is only a partial remedy for more systemic issue of a lack of affordable rental housing in developed economies in our study of Canadian and American renters.</p>
<p>Addressing the rent affordability crisis requires effective civic policies and planning as well as private sector investment and participation to ensure long-term sustainable housing.</p>
<p><em>This is a corrected version of a story originally published on Feb. 4. An earlier version of the story said the Canada Infrastructure Bank had invested $150 million in sustainable affordable housing. In fact, the Canada Infrastructure Bank committed $150 million towards sustainable retrofit projects with Avenue Living.</em></p><img src="https://counter.theconversation.com/content/221954/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grant Alexander Wilson has consulted for, and received research funding from, the real estate owner/operator Avenue Living.</span></em></p><p class="fine-print"><em><span>Tyler Case 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>Most research on unaffordable housing has focused on homeownership, but rental affordability is also a serious issue.Grant Alexander Wilson, Assistant Professor, Hill and Levene Schools of Business, University of ReginaTyler Case, Assistant Professor, Edwards School of Business, University of SaskatchewanLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2110822023-08-07T12:06:43Z2023-08-07T12:06:43ZHousing is a direct federal responsibility, contrary to what Trudeau said. Here’s how his government can do better.<figure><img src="https://images.theconversation.com/files/541282/original/file-20230804-20651-ldda9c.JPG?ixlib=rb-1.1.0&rect=0%2C0%2C5955%2C3988&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Prime Minister Justin Trudeau speaks during a visit to an apartment complex under construction in Hamilton, Ont., on July 31, 2023. </span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Peter Power</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/housing-is-a-direct-federal-responsibility-contrary-to-what-trudeau-said-heres-how-his-government-can-do-better" width="100%" height="400"></iframe>
<p><a href="https://www.cbc.ca/news/politics/trudeau-housing-responsible-feds-provinces-1.6924290">Prime Minister Justin Trudeau stated</a> that “housing isn’t a primary federal responsibility” at a funding announcement in Hamilton, Ont. on July 31. </p>
<p>This statement is neither accurate nor politically smart, with recent polls suggesting that <a href="https://abacusdata.ca/canadian-politics-polling-abacus-data-january-2023-2/">70 per cent of Canadians</a> think the Liberal government isn’t adequately addressing the high and growing cost of housing.</p>
<p>While the word “housing” isn’t mentioned in the 1867 Constitution Act or <a href="https://laws-lois.justice.gc.ca/eng/Const/page-12.html">1982 Charter of Rights and Freedoms</a> as a federal, provincial or municipal responsibility, the rights to “life, liberty and security of the person” as well as “equal protection” in the Charter can’t be achieved without adequate housing. </p>
<p>The right to housing — which Canada has promised to enforce in numerous <a href="https://www.ohchr.org/en/instruments-mechanisms/instruments/international-covenant-economic-social-and-cultural-rights">international</a> <a href="https://social.desa.un.org/issues/indigenous-peoples/united-nations-declaration-on-the-rights-of-indigenous-peoples">covenants</a> — was enshrined in <a href="https://laws-lois.justice.gc.ca/eng/acts/n-11.2/FullText.html">Canadian law by the current government in 2019</a>.</p>
<p>Instead of taking responsibility for the housing needs of Canadians, the federal government has been participating in the same “<a href="https://centre.irpp.org/wp-content/uploads/sites/3/2023/05/Closing-the-Implementation-Gap-Federalism-and-Respect-for-International-Human-Rights-in-Canada.pdf">ambiguity, turf guarding, buck passing and finger pointing</a>” they accuse other governments of doing, as was recently seen in the treatment of <a href="https://www.theglobeandmail.com/opinion/editorials/article-ottawa-cant-wash-its-hands-of-torontos-refugee-crisis/">refugee claimants in Toronto</a>. </p>
<h2>History of federal housing engagement</h2>
<p>Trudeau seems to have forgotten about the federal government’s previous involvement in housing. After the Second World War, the Canadian government helped create a million low-cost <a href="https://www.bloomberg.com/news/features/2021-03-24/the-design-history-of-toronto-s-victory-houses">Victory Houses</a> using government land, direct grants and industrialized production processes that allowed new homes to be assembled in as little as 36 hours. </p>
<p>From the mid-1960s to the mid-1980s, between <a href="https://doi.org/10.29173/cjnser586">10 and 20 per cent</a> of new construction was non-market housing — public, community and co-op — supported through federal land, grants and financing partnerships with provincial and municipal governments.</p>
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<a href="https://theconversation.com/new-study-reveals-intensified-housing-inequality-in-canada-from-1981-to-2016-173633">New study reveals intensified housing inequality in Canada from 1981 to 2016</a>
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<p>As a result of federal government actions, the <a href="https://economics.td.com/esg-housing-wealth-inequality">average home cost 2.5 times the average household income in 1980</a>. Today, the average home in Canada costs 8.8 times the average income, with homes in Toronto and Vancouver costing 13.2 and 14.4 times respectively.</p>
<p>The production of non-market housing <a href="https://thetyee.ca/Analysis/2022/04/22/Why-Cant-We-Build-Like-1970s/">fell off a cliff in 1992</a> when the federal government downloaded responsibility for affordable housing to provinces.</p>
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<a href="https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A graph illustrating how government-funded affordable housing dropped in the mid-1990s" src="https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=354&fit=crop&dpr=1 600w, https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=354&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=354&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=445&fit=crop&dpr=1 754w, https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=445&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/541291/original/file-20230804-15-3lr4h7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=445&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 Canadian government reduced its spending on affordable housing after 1992 when it shifted the responsibility onto provinces.</span>
<span class="attribution"><span class="source">(Brian Clifford)</span>, <span class="license">Author provided</span></span>
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<p>Private rental construction <a href="http://neighbourhoodchange.ca/documents/2014/09/suttor-2009-rental-housing-paths-canada-compared.pdf">dropped precipitously after 1972</a> when the federal government cut back on taxation incentives. The housing crisis has its roots in the federal government’s neglect of affordable housing over decades. </p>
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<a href="https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A graph illustrating that the amount of purpose-built rental housing in Canada increased from 1950 to 1974, before decreasing until 1999." src="https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=474&fit=crop&dpr=1 754w, https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=474&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/541292/original/file-20230804-25-awyo9h.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=474&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 construction of purpose-built rental housing dropped after 1972 when the federal government cut back on taxation incentives.</span>
<span class="attribution"><span class="source">(Greg Suttor)</span>, <span class="license">Author provided</span></span>
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<h2>Five priorities for the federal government</h2>
<p>There is an opportunity for real federal leadership with the recent announcement that <a href="https://www.theglobeandmail.com/politics/article-trudeau-cabinet-shuffle/">Sean Fraser will take on a combined Ministry of Housing, Infrastructure and Communities</a>. Rather than dodging responsibility, the federal government should pursue five priorities.</p>
<p>First, the federal government must return to using a <a href="https://www.theglobeandmail.com/opinion/article-governments-across-canada-need-common-income-based-definition-of/">single income-based definition of affordable housing</a> in its programs, as it did from the 1940s to the 1990s. </p>
<p><a href="https://hart.ubc.ca/">Evidence-based supply targets for provinces and municipalities</a> would reflect the fact that 78 per cent of households in need of housing can afford no more than $1,050 a month for rent and homeless people no more than $420 a month. </p>
<figure class="align-center ">
<img alt="Construction workers building a home" src="https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=358&fit=crop&dpr=1 600w, https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=358&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=358&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=450&fit=crop&dpr=1 754w, https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=450&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/541283/original/file-20230804-17929-5cp2vk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=450&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The housing crisis has its roots in the federal government’s abandonment and ongoing neglect of affordable housing.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Sean Kilpatrick</span></span>
</figcaption>
</figure>
<p>Second, <a href="https://chra-achru.ca/wp-content/uploads/2022/11/Blueprint-for-Housing_CHRA-2022.pdf">delivery of genuinely affordable housing</a> — including a fair share of <a href="https://nichi.ca/">Indigenous housing built by and for Indigenous people</a> — will require land from all three levels of government, grants to non-market housing providers and low-cost financing. </p>
<p><a href="https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.insights-views.social-housing--january-18--2023-.html">Scotiabank’s recommendation to double non-market stock</a> with 655,000 new or acquired homes over the next decade is a starting point to <a href="https://eppdscrmssa01.blob.core.windows.net/cmhcprodcontainer/sf/project/placetocallhome/pdfs/canada-national-housing-strategy.pdf">eradicating homelessness by 2030</a> and reducing the core housing needs of 530,000 families by 2028.</p>
<p>Third, a <a href="https://www.gensqueeze.ca/price_on_housing_inequity">progressive surtax placed on the most expensive homes</a> in Canada, or redressing the $3.2 trillion capital gains tax shelter for principal residences, could fund an improved National Housing Strategy with a stronger focus on those who need housing the most.</p>
<p>Fourth, the government must meet the needs of its rapidly growing population and ensure middle-income families can afford to raise their children in urban areas.</p>
<p><a href="https://www.theglobeandmail.com/opinion/article-how-canada-can-create-more-rental-housing/">Taxation reform</a> and offering long-term, low-cost financing for purpose-built rental homes are both federal government responsibilities. So is supporting Canadian firms to become world leaders in <a href="https://www.brantfordexpositor.ca/news/local-news/brantford-company-becoming-a-world-leader-in-modular-housing">prefabricated modular housing</a>. </p>
<figure class="align-center ">
<img alt="People walk past a small, rectangular residence. A city skyline is visible in the background." src="https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/541285/original/file-20230804-20651-k8vdyv.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 temporary modular housing suite on display in Robson Square in downtown Vancouver in 2017.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Ben Nelms</span></span>
</figcaption>
</figure>
<h2>Provinces and municipalities must step up</h2>
<p>The final priority the federal government should consider <a href="https://womenshomelessness.ca/wp-content/uploads/EN-Rights-Based-GBA-Analysis-of-NHS-28-Sept-2021.pdf">is using conditional agreements for infrastructure funding</a> to encourage other levels of government to do more.</p>
<p>Provincial and territorial <a href="https://maytree.com/changing-systems/data-measuring/welfare-in-canada/">welfare rates</a> and <a href="https://policyalternatives.ca/publications/reports/cant-afford-rent">minimum wages</a> don’t match housing costs. Insufficient provincial funding for <a href="https://www.abeoudshoorn.com/wp-content/uploads/2023/03/Indwell-Project-Final-Report-Feb-9-2023.pdf">health and social supports</a> has put federal rapid housing initiatives at risk. </p>
<p>Provinces must improve residential tenancy protections to stop the <a href="https://housingresearch.ubc.ca/sites/default/files/2023-05/estimating_no-fault_evictions_in_canada_0_2.pdf">rising tide of evictions</a> and <a href="https://rentals.ca/national-rent-report">double-digit rent increases</a>. Municipalities need to revise <a href="https://makehousingaffordable.ca/housing-action-plan/">zoning codes</a> to allow four- to six-storey buildings in all residential areas and 10- to 30-storey buildings close to rapid transit stations.</p>
<p>Municipalities must stop making it harder for multi-unit housing to be built. Barriers, including placing restrictions on how many units can be built, setting parking requirements, imposing onerous development charges and elaborate design requirements, must be eliminated.</p>
<p>By amending the <a href="https://www.larchlab.com/wp-content/uploads/2022/01/Eliason_CoV-Point-Access-Blocks-report_v1.2.pdf">federal building code</a>, municipalities could scale up smaller, affordable, accessible and energy-efficient apartment buildings with family-sized units.</p>
<p>Rather than passing the buck for housing, the federal government must take the lead on affordable housing supply, the <a href="https://www.ctvnews.ca/canada/discrimination-and-supply-contribute-to-housing-affordability-crisis-survey-finds-1.6148493">most pressing issue Canadians are facing today</a>.</p><img src="https://counter.theconversation.com/content/211082/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Carolyn Whitzman receives funding from the Canada Mortgage and Housing Corporation, Employment and Social Development Canada, and the Office of the Federal Housing Advocate.</span></em></p><p class="fine-print"><em><span>Alexandra Flynn receives funding from the Social Sciences and Humanities Research Council and the Canada Mortgage and Housing Corporation. </span></em></p>Prime Minister Justin Trudeau’s comments about housing not being the primary responsibility of the federal government miss the mark.Carolyn Whitzman, Housing Policy Researcher, Expert Advisor, Housing Assessment Resource Tools and Adjunct Professor, L’Université d’Ottawa/University of OttawaAlexandra Flynn, Associate Professor, Peter A. Allard School of Law, University of British ColumbiaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2041702023-04-20T14:43:37Z2023-04-20T14:43:37ZCities must take immediate action against ‘renovictions’ to address housing crisis<figure><img src="https://images.theconversation.com/files/521975/original/file-20230419-22-qkeeqg.jpg?ixlib=rb-1.1.0&rect=85%2C498%2C5086%2C2959&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The federal government isn’t doing enough to protect tenants or preserve existing affordable housing.</span> <span class="attribution"><span class="source">(AP Photo/Matt Rourke)</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/cities-must-take-immediate-action-against--renovictions--to-address-housing-crisis" width="100%" height="400"></iframe>
<p>Amid all the discussions about constructing new housing, existing affordable housing is being overlooked. A recent study found that <a href="https://www.theglobeandmail.com/real-estate/vancouver/article-even-as-housing-plans-progress-truly-affordable-housing-is-being-lost/">322,000 affordable homes were lost across Canada between 2011 and 2016</a> compared to the construction of only 60,000 new houses for those in greatest need of housing. </p>
<p>In cities like Hamilton, Ont., the situation is even more dire: for every new unit of affordable housing built, <a href="https://www.thespec.com/news/hamilton-region/2023/03/15/hamilton-bleeding-affordable-housing-faster-than-it-can-build-it.html">29 are lost</a>. While most of these homes still exist, they are now much more expensive. And that’s largely because of renovictions.</p>
<p><a href="https://renovictionsto.com/">Renovictions</a> occur when landlords evict tenants, renovate the vacated units, then lease the units at much higher rents. The <a href="https://www.cbc.ca/news/canada/toronto/rent-control-reforms-could-mark-return-to-sky-high-increases-for-toronto-tenants-advocates-warn-1.4908665">lack of rent control</a> on vacant units creates a financial incentive for landlords to evict long-term tenants, many of whom pay below market rates. </p>
<p>To be clear, when we speak about landlords in this context, we are primarily referring to <a href="https://www.homelesshub.ca/sites/default/files/attachments/august-financialization-rental-housing-ofha-en.pdf">large financialized landlords</a> that own hundreds of buildings and thousands of units and whose <a href="https://doi.org/10.1080/07352166.2019.1705846">business model</a> is based on profit by dispossession — not just “mom and pop” landlords. </p>
<p>In Ontario, provincial rules around renovictions are weak. Doug Ford’s government recently introduced <a href="https://publicprogress.ca/housing-matters-updates/f/ontarios-bill-97-proposes-changes-to-residential-tenancies-act">Bill 97, the Helping Homeowners, Protecting Tenants Act</a>. Despite its name, the bill does not constitute a significant improvement for renters. The onus still falls on tenants to exercise their legal right to return to the residence and find temporary accommodation in the meantime.</p>
<p>Despite <a href="https://thetyee.ca/Analysis/2023/01/05/What-Does-Billion-Dollar-Housing-Program-Really-Fix/">spending billions on housing</a>, the federal government also isn’t making significant inroads to protect tenants or preserve existing affordable housing. The National Housing Strategy has produced <a href="https://assets.cmhc-schl.gc.ca/sites/place-to-call-home/pdfs/analysis-affordable-housing-supply-created-unilateral-nhs-programs-en.pdf">little affordable housing for people in need</a>.</p>
<p>This means it’s up to cities to use whatever powers they have to make a difference.</p>
<h2>Anti-renoviction bylaws</h2>
<figure class="align-right ">
<img alt="A piece of paper that says 'Eviction Notice' nailed to a front door." src="https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=712&fit=crop&dpr=1 600w, https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=712&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=712&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=894&fit=crop&dpr=1 754w, https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=894&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/521965/original/file-20230419-28-gz9o0z.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=894&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Renovictions occur when landlords evict sitting tenants to renovate their units and lease them at much higher rents.</span>
<span class="attribution"><span class="source">(Shutterstock)</span></span>
</figcaption>
</figure>
<p>On April 20, Hamilton’s <a href="https://pub-hamilton.escribemeetings.com/Meeting.aspx?Id=72b90af4-3896-4dd2-823e-dda87bb6e450&Agenda=Agenda&lang=English&Item=7&Tab=attachments">Emergency and Community Services Committee</a> will debate whether to pursue new bylaws to crack down on renovictions. </p>
<p>As housing researchers, we believe tough anti-renoviction bylaws are one of the best single measures a city can implement to make a dramatic and immediate impact on housing affordability.</p>
<p>There is precedent for this. New Westminster, B.C., <a href="https://www.cbc.ca/news/canada/british-columbia/new-westminster-bylaw-against-renoviction-1.5006828">passed an anti-renoviction bylaw</a> in 2019 that heavily fined landlords who did not allow tenants to return after renovations were completed. </p>
<p>The result: <a href="https://www.thestar.com/news/canada/2021/05/12/this-metro-vancouver-city-cracked-the-renoviction-code-can-it-work-elsewhere.html">New Westminster virtually eliminated renovictions</a>.</p>
<p>The bylaw <a href="https://www.cbc.ca/news/canada/british-columbia/renoviction-new-west-2021-appeal-1.6012790">withstood two court challenges</a>. It was only repealed after the British Columbia government enacted similar legislation province-wide, albeit a more watered-down version of New Westminster’s bylaw.</p>
<p>Hamilton has the opportunity to be a national leader in housing affordability by ending an unjust practice that destroys the lives of tenants and erodes the city’s affordable housing stock. </p>
<p>The census doesn’t track renovictions; for some planners, politicians and policymakers, this lack of official data means there isn’t a problem.</p>
<p>At the April 20 committee meeting, councillors were poised to hear many first-hand accounts of renovictions from tenants. Their lived experiences are the data. But <a href="https://doi.org/10.1016/j.geoforum.2021.06.013">our research shows</a> that this is only the <a href="https://acorncanada.org/news/rabble-ca-tenants-resist-renoviction-as-affordable-housing-across-canada-dwindles/">tip of the iceberg</a>. </p>
<h2>Hamilton consultant report</h2>
<p><a href="https://pub-hamilton.escribemeetings.com/filestream.ashx?DocumentId=359707">City staff</a> have been looking into whether Hamilton can legally enact a New Westminster-style bylaw. Their <a href="https://pub-hamilton.escribemeetings.com/filestream.ashx?DocumentId=359708">consultant’s report</a> concluded it was not within the city’s powers. However, the report missed two key components.</p>
<p>First, the consultant’s report states that, in light of the <a href="https://www.cbc.ca/news/canada/toronto/ontario-housing-tenant-protections-1.6802221">provincial protections from renovictions in Ontario</a>, a New Westminster-style bylaw would be irrelevant. This is not accurate. There are significant differences between the New Westminster bylaw and current B.C. legislation and the Ontario guidelines under the <a href="https://www.ontario.ca/laws/statute/06r17">Residential Tenancies Act (RTA)</a>. </p>
<p>While the RTA has some protections against renovictions, <a href="https://renovictionsto.com/reports/RenovictionsTO-RenovictionsReport-Final.pdf">they are inadequate</a>; very few tenants who leave their units due to renovations return, and even <a href="https://pub-hamilton.escribemeetings.com/filestream.ashx?DocumentId=358388">fewer return at the same rent</a>. </p>
<figure class="align-center ">
<img alt="Four light blue banners with anti-eviction slogans written on them hang from apartment balconies." src="https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=367&fit=crop&dpr=1 600w, https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=367&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=367&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=461&fit=crop&dpr=1 754w, https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=461&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/521952/original/file-20230419-24-hslqxg.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=461&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Banners are seen on the balconies of an apartment building where residents received notices stating they must move out for at least seven months due to renovations in Montréal in April 2021.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Paul Chiasson</span></span>
</figcaption>
</figure>
<p>What is different about New Westminster’s bylaw? Unlike Ontario, in New Westminster, the onus was shifted to the landlord to demonstrate that tenant occupancy could not continue during renovations, and, importantly, to provide alternate accommodations while the renovation work was taking place.</p>
<p>Second, Hamilton’s report argues that B.C. municipalities have more authority as a result of their community charters to enact this type of bylaw. This is contrary to the <a href="https://acorncanada.org/locations/hamilton-acorn/">legal opinion of ACORN Hamilton</a>, a tenant advocacy and organizing group, which suggests such a bylaw would be in the purview of an Ontario municipality. </p>
<p>Moreover, prior to the court challenges in B.C., which upheld the New Westminster bylaw, it was not clear that B.C. municipalities had this authority either.</p>
<h2>Walking the talk</h2>
<p>Hamilton’s city council understands the urgency of the housing crisis. The city’s own data demonstrates a <a href="https://tribunalsontario.ca/documents/ltb/Notices%20of%20Termination%20&%20Instructions/N13_Instructions_20200728.pdf">dramatic increase in N13 applications</a> (notice to end tenancy because a landlord wants to demolish, repair or convert a rental unit) and subsequent renovictions. </p>
<p>Earlier this month, Hamilton declared a <a href="https://www.cbc.ca/news/canada/hamilton/state-of-emergency-declared-1.6808884">state of emergency over homelessness</a>. </p>
<p>Our question to Hamilton’s civic leaders is this: with more than <a href="https://www.cbc.ca/news/canada/hamilton/hamilton-tenants-affordable-units-1.6796324">15,000 units rented at less than $750 a month</a> lost over the past decade, where do you think many people who are renovicted end up?</p>
<p>Creating a tough anti-renoviction bylaw would be a big step to turn nice words into bold action.</p>
<p>Cities can’t just talk. They need to take immediate action. Neither the province nor the federal government have any meaningful legislation to help renters. Evidence from elsewhere suggests tough anti-renoviction bylaws have a dramatic impact on affordability. City councils must do everything they can to protect tenants and affordable housing.</p><img src="https://counter.theconversation.com/content/204170/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Brian Doucet receives funding from SSHRC, the Canada Research Chairs program and the Hamilton Community Foundation. Some of his research is conducted in partnership with the Social Development Centre Waterloo Region. He has co-written reports on housing and mobility for local governments in Ontario. He will join ACORN and others delegating in favour of an anti-renoviction bylaw at the City of Hamilton's Emergency and Community Services Committee on April 20.
</span></em></p><p class="fine-print"><em><span>Laura Pin receives funding from SSHRC and in the past has received funding from the Canada Mortgage and Housing Corporation. She has worked on community-engaged research projects with Services and Housing in the Province, the Social Development Centre Waterloo Region, the Guelph-Wellington Taskforce for Poverty Elimination, Tamitik Status of Women, A Better Tent City, and the Canadian Rent Bank Coalition. She submitted written comments to the City of Hamilton in favour of an anti-renoviction bylaw at the April 20 Emergency and Community Services Committee meeting. </span></em></p>Cities across Canada are rapidly losing affordable housing. Provincial and federal governments aren’t helping, so it’s up to cities to start taking action themselves.Brian Doucet, Canada Research Chair in Urban Change and Social Inclusion, University of WaterlooLaura Pin, Assistant Professor, Faculty of Arts, Wilfrid Laurier UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2016242023-04-02T11:46:40Z2023-04-02T11:46:40ZRenters have stepped up efforts to address the housing crisis — it’s time for property managers to do the same<figure><img src="https://images.theconversation.com/files/517055/original/file-20230322-1452-4bgiik.jpg?ixlib=rb-1.1.0&rect=31%2C0%2C5249%2C3436&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Renters and property managers both have mutual responsibilities in times of financial crisis.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Jonathan Hayward</span></span></figcaption></figure><p>Three years ago, at the onset of the COVID-19 pandemic, I published <a href="https://theconversation.com/distinguishing-between-wants-and-needs-during-the-coronavirus-pandemic-135656">an article on what it means to prioritize needs over wants</a> in times of economic crisis. </p>
<p><a href="https://psycnet.apa.org/doi/10.1037/h0054346">Maslow’s hierarchy of needs</a> shows that the most fundamental needs are physiological and required for survival. These needs include health, food, water and shelter. On the other hand, wants are non-essentials, such as fashion items, travel, entertainment and gourmet food.</p>
<p><a href="https://www.bls.gov/opub/btn/volume-3/how-does-consumer-spending-change-during-boom-recession-and-recovery.htm">Historical data shows</a> that people typically understand the difference between wants and needs. People are usually smart with their money in recessions or times of market uncertainty.</p>
<p>Specifically, the data found that people and families eat more meals at home and defer large purchases in order to make rent or mortgage payments.</p>
<p>With Canada in the midst of a <a href="https://theconversation.com/new-study-reveals-intensified-housing-inequality-in-canada-from-1981-to-2016-173633">housing affordability crisis</a>, I decided to revisit the topic of renter needs, wants and housing outcomes. </p>
<p>As a <a href="https://www.uregina.ca/business/faculty-staff/faculty/wilson-grant.html">business and economics researcher</a>, I wanted to explore the consumer spending patterns of renters in the new economic crisis of <a href="https://www.bnnbloomberg.ca/canada-s-higher-interest-rates-cause-borrowers-pain-1.1891637">high interest rates</a>, <a href="https://www.forbes.com/sites/pamdanziger/2023/03/12/consumers-resilience-has-reached-the-breaking-point-one-trillion-dollars-worth/">staggering inflation</a> and <a href="https://www.cnbc.com/2023/03/17/here-are-all-9-stocks-we-bought-this-week-during-the-bank-driven-market-volatility-.html">financial market volatility</a>. </p>
<p>Renters and property managers both have mutual responsibilities in times of financial crisis. Renters must make careful spending decisions and do all they can to pay their rent. At the same time, property managers should focus on understanding occupants’ needs in order to cater to them.</p>
<h2>New study on tenants and landlords</h2>
<p>With my co-authors <a href="https://www.avenuelivingam.com/team/gabriel-millard/">Gabriel Millard</a> and <a href="https://www.avenuelivingam.com/insights/the-reading-and-listening-list-our-favourite-books-and-podcasts-of-2022/">Cameron Hills</a>, executives of <a href="https://www.avenuelivingam.com/">one of Canada’s largest property owner-operators, Avenue Living</a>, we examined the spending habits of renters and the rental strategies of property managers in the United States, the United Kingdom and Canada.</p>
<p>Our research, published in the real estate economics journal <a href="https://doi.org/10.1108/PM-10-2022-0082"><em>Property Management</em></a>, involved a multi-national study of 1,251 renters. Our results showed that consumers were successfully prioritizing needs over wants, but many were still struggling financially.</p>
<p>According to the Canada Mortgage and Housing Corporation, housing is deemed affordable if it costs <a href="https://www.avenuelivingam.com/insights/economically-problematic-an-empirical-examination-of-cmhcs-affordability-program-for-existing-rental-housing-stock/">less than 30 per cent of a household’s pre-tax income</a>. Over half of the renters who were surveyed across different properties indicated they lived in unaffordable rental accommodations.</p>
<p>These same renters consciously made decisions to spend less in almost every other expense category, including food, transportation, entertainment and clothing. Although consumers were making smart financial decisions, many were still struggling with affordability. This is deeply concerning.</p>
<h2>Property managers are key</h2>
<p>Our research showed that renters were already doing their part to deal with the rising cost of living by prioritizing their needs over wants. But despite their efforts, housing affordability still remained outside their control. This is where property managers come in — they must also do their part to address the affordability crisis.</p>
<p>Our research makes a compelling case for why property managers should try to accommodate the needs of their tenants. We found that customer-oriented property managers — <a href="https://www.jstor.org/stable/1251757">those who sought to understand the needs of their tenants and acted accordingly</a> — were more successful than those that didn’t.</p>
<p>Property managers who attempted to accommodate renters — with alternative rent payment dates, integrated services and commitments to creating safe accommodations, to name a few — had better tenants. These tenants had greater loyalty, higher trust, elevated pride in their rental units and stronger commitments to paying rent on time. </p>
<p>Simply put, property managers who truly cared about their tenants’ needs ended up with better tenants.</p>
<figure class="align-center ">
<img alt="A man shows a laptop screen to a couple sitting at the same table as him" src="https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/517058/original/file-20230322-2102-f1b42c.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 new study has found that landlords who seek to understand the needs of their tenants are more successful than those that didn’t.</span>
<span class="attribution"><span class="source">(Shutterstock)</span></span>
</figcaption>
</figure>
<h2>The road ahead</h2>
<p>For many Canadians, the dream of home ownership has been deferred. <a href="https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810020501">Home prices remain high</a>, current interest rates make monthly <a href="https://www.avenuelivingam.com/insights/white-paper-re-examining-a-hedge-against-inflation-multi-family-residential-real-estate/">mortgage payments significantly larger</a>, increased credit score requirements make it <a href="https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.what-credit-score-do-you-need-to-buy-a-house-in-canada.html">more difficult for new mortgage approvals</a> and inflation <a href="https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation">is reducing everyone’s purchasing power</a>. </p>
<p>As a result, there is an increased need for rental housing in Canada, especially affordable rentals. In order for Canada to overcome the housing affordability crisis, individuals, families, the real estate industry and governments all need to work together. </p>
<p>Renters and property managers must each do their part. Renters should continue to prioritize needs over wants, while property managers should try to cultivate good tenants by being customer-oriented. Good tenants are those who are loyal, trusting and committed.</p>
<p>The real estate industry must also invest in affordable housing initiatives and existing rental stock. There is <a href="https://www.cmhc-schl.gc.ca/en/data-and-research/data-tables/rental-market">significant and sustained demand for rental accommodation in Canada</a>. Residents are price-sensitive and will always seek out economical alternatives; the industry should reflect this by building more affordable housing. </p>
<p>Finally, governments, organizations and policymakers need to continue focusing and investing in affordable housing initiatives. Commitments to affordable and sustainable housing initiatives <a href="https://premium.wealthprofessional.ca/ca-roundtable-breathing-new-life-into-canadas-housing-supply/p/1">have been made by Canada Infrastructure Bank</a> and the <a href="https://www.cbc.ca/news/canada/saskatchewan/regina-affordable-rapid-housing-1.6747208">Canada Mortgage and Housing Corporation</a>, but more work needs to be done.</p><img src="https://counter.theconversation.com/content/201624/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grant Alexander Wilson has received research funds and consulted for Avenue Living Asset Management.
</span></em></p>In order for Canada to overcome the housing affordability crisis, individuals, families, the real estate industry and government all need to work together.Grant Alexander Wilson, Assistant Professor, Hill and Levene Schools of Business, University of ReginaLicensed 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>
<figure class="align-center ">
<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">
<figcaption>
<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>
</figcaption>
</figure>
<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>
<figure class="align-center ">
<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">
<figcaption>
<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>
</figcaption>
</figure>
<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>
<figure class="align-center ">
<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">
<figcaption>
<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>
</figcaption>
</figure>
<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>
<hr>
<p>
<em>
<strong>
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>
</strong>
</em>
</p>
<hr>
<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/1996672023-02-26T19:04:20Z2023-02-26T19:04:20ZTiny houses and alternative homes are gaining councils’ approval as they wrestle with the housing crisis<figure><img src="https://images.theconversation.com/files/511858/original/file-20230223-1774-5b2d4y.jpg?ixlib=rb-1.1.0&rect=0%2C90%2C4025%2C2685&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Image: Heather Shearer</span>, <span class="license">Author provided</span></span></figcaption></figure><p>Australia’s coastal cities and surrounding hinterlands have long been popular with tourists, sea-changers and retirees. But they have a darker side. In the early morning you will often find car parks crowded with <a href="https://www.abc.net.au/news/2023-02-24/councils-and-housing-groups-call-for-400m-budget-boost/102015638">cars, vans, caravans and even tents</a>, where refugees from the housing crisis have spent the night. </p>
<p>People of all ages, including families with children, are cooking breakfast, using the cold-water showers and packing up for another day, always trying to keep one step ahead of council officers or police. These unhoused people <a href="https://www.youtube.com/watch?v=yk4eWjYVNYg">don’t conform to homeless stereotypes</a>. Many have jobs and children in school and no serious mental or physical health problems. They simply <a href="https://theconversation.com/the-rent-crisis-is-set-to-spread-heres-the-case-for-doubling-rent-assistance-196810">cannot find an affordable home to rent</a>, or have lost or are unable to buy a home of their own.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/homeless-numbers-have-jumped-since-covid-housing-efforts-ended-and-the-problem-is-spreading-beyond-the-big-cities-194624">Homeless numbers have jumped since COVID housing efforts ended – and the problem is spreading beyond the big cities</a>
</strong>
</em>
</p>
<hr>
<p>Soaring rates of housing stress are forcing Australians to explore new options, including <a href="https://theconversation.com/tiny-and-alternate-houses-can-help-ease-australias-rental-affordability-crisis-182328">living smaller and in tiny houses</a>. At Griffith University’s Cities Research Institute, we are surveying local government planners on whether they allow, encourage or limit tiny, temporary or alternative houses in their area. </p>
<p>In early findings (from a response rate of over 50% to date), nearly all respondents agree affordability is a problem for both home buyers and renters. While not representing formal council views, their responses indicate most councils now approve modular, manufactured and shipping container houses, despite a public perception they oppose such dwellings. Some have codes specifically for tiny houses on wheels.</p>
<p>As one planner explained:</p>
<blockquote>
<p>We will have to think differently about how we live, given housing affordability, inflation, susceptibility to emergency events and the like, and perhaps be more lenient on allowing these types of dwellings – whether on a permanent or temporary basis.</p>
</blockquote>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=349&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=349&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=349&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=439&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=439&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511874/original/file-20230223-776-5t5119.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=439&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cumulative numbers of survey responses indicating types of dwellings permitted, considered or not allowed. Note: THOW is tiny houses on wheels, THSkids is tiny houses on skids.</span>
<span class="attribution"><span class="source">Data: Cities Research Institute survey/Griffith University</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/tiny-and-alternate-houses-can-help-ease-australias-rental-affordability-crisis-182328">Tiny and alternate houses can help ease Australia's rental affordability crisis</a>
</strong>
</em>
</p>
<hr>
<h2>All housing must comply with the law</h2>
<p><a href="https://journals.sagepub.com/doi/full/10.1177/09697764221145436">Local governments in New South Wales</a> and Queensland were the most progressive. Many councils (41%) already approve alternative housing types for permanent dwelling. But they must comply with local laws, be in an appropriate residential zone and approved as a residential dwelling, connected to services and protect local amenity. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=357&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=357&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=357&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=448&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=448&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511875/original/file-20230223-2271-mw4uxj.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=448&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cumulative numbers of responses from each state indicating that the local council approves tiny houses and alternative housing types.</span>
<span class="attribution"><span class="source">Data: Cities Research Institute survey/Griffith University</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=359&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=359&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=359&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=451&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=451&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511876/original/file-20230223-18-sysg55.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=451&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cumulative numbers of responses from each state indicating that the local council may approve tiny houses and alternative housing types.</span>
<span class="attribution"><span class="source">Data: Cities Research Institute survey/Griffith University</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=358&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=358&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=358&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=449&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=449&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511877/original/file-20230223-17-v0xg02.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=449&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Cumulative numbers of responses from each state indicating that the local council does not approve tiny houses and alternative housing types.</span>
<span class="attribution"><span class="source">Data: Cities Research Institute survey/Griffith University</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>For example, a planner from a large regional city in NSW said options like tiny houses were possible, “subject to approval and compliance with Planning and Environment Act and Building Act requirements. All need to be approved for permanent use and hence comply with requirements for all dwellings.” </p>
<p>Another NSW planner said:</p>
<blockquote>
<p>There are some temporary exemptions in the legislation for disaster event accommodation for up to two years, and [it] had to comply with planning and building act requirements. Local laws become involved if these structures are parked on council land e.g. on the side of the road or on public land. And environmental health issues arise when there is no waste management measure in place.</p>
</blockquote>
<p>The <a href="https://www.frasercoast.qld.gov.au/temporary-home?fbclid=IwAR2QBvRUJpmFI1Vgo52Ptopyp3eZv6mMunAVR8j8xb1oro7TRdps59NGjLQ">Fraser Coast Council</a> in Queensland recently allowed property owners “to accommodate family or friends in a caravan on the dwelling allotment for up to six months in a 12-month period”. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="View from the outside of a home made from a shipping container" src="https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=565&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=565&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511855/original/file-20230223-25-rk6z7c.jpeg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=565&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A basic container home can be very affordable.</span>
<span class="attribution"><span class="source">Image: Heather Shearer</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/so-you-want-to-live-tiny-heres-what-to-consider-when-choosing-a-house-van-or-caravan-129790">So, you want to live tiny? Here's what to consider when choosing a house, van or caravan</a>
</strong>
</em>
</p>
<hr>
<h2>What are the concerns about tiny houses?</h2>
<p>Many respondents did voice concern about false advertising by the tiny house industry. As one said:</p>
<blockquote>
<p>Tiny houses are the Uber and Airbnb of the housing industry. The idea that such structures can be temporary is in many cases fanciful.</p>
</blockquote>
<p>Some manufacturers market their tiny houses as not needing council approval. They fail to mention the requirements that apply to water supply, waste disposal, bushfire and flood risk, and avoiding conflict with agriculture.</p>
<blockquote>
<p>[Alternative housing] should be regulated to some extent to ensure that occupants and adjoining neighbourhoods experience a reasonable level of amenity (i.e. not unreasonably put a strain on existing infrastructure, not detract from local character (if prevailing), not cause overshadowing to adjoining neighbours, be fit for purpose etc).</p>
</blockquote>
<p>Another concern is tiny houses that don’t comply with building regulations. </p>
<blockquote>
<p>Most of these buildings do not comply with the minimum 2.4m ceiling height of the National Construction Code/Building Code of Australia. Even if they do comply […] unless a compliancy certificate has been issued by the manufacturer, there is practically no way of approving them as a certifier has no access to the specifications, can’t visually inspect the frame prior to cladding etc.</p>
</blockquote>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=298&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=298&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=298&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=375&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=375&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511879/original/file-20230223-24-8hmrhr.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=375&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Potential conditions of approval that apply to tiny houses and alternative housing types as indicated by survey respondents.</span>
<span class="attribution"><span class="source">Data: Cities Research Institute survey/Griffith University</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>A quest for creative solutions</h2>
<p>The <a href="https://www.tandfonline.com/doi/full/10.1080/02673037.2021.1884203">tiny house movement</a>, despite its limitations, could help deliver some of the creative solutions the housing crisis demands. It has sparked an important <a href="https://theconversation.com/loving-the-idea-of-tiny-house-living-even-if-you-dont-live-in-one-157052">conversation about alternative housing solutions</a>, with broader implications for housing design, construction, regulation, finance and insurance. </p>
<blockquote>
<p>I personally would like to see more flexibility in allowing diverse house types (including temporary dwellings) to put less financial strain on people (put people into homes/home ownership who can’t afford traditional houses or can’t find a rental) and create opportunities for alternative lifestyles (i.e. more nomadic, work less, co-op). Keeping in mind there should be measures to preserve amenity.</p>
</blockquote>
<p>A focus on good design, adaptability and affordability can make smaller dwellings more attractive to more people. Assembling prefabricated components on site can cut costs.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/loving-the-idea-of-tiny-house-living-even-if-you-dont-live-in-one-157052">Loving the idea of tiny house living, even if you don't live in one</a>
</strong>
</em>
</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Looking down at the interior of a tiny house from the upper level" src="https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/511852/original/file-20230223-16-cz7p3u.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A focus on well-designed, adaptable and affordable tiny houses will broaden their appeal as a housing solution.</span>
<span class="attribution"><span class="source">Image: Heather Shearer</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Tiny homes can be deployed and redeployed quickly if necessary. This is important for areas hit by disasters. </p>
<p>Their small scale offers a way of <a href="https://theconversation.com/interest-in-tiny-houses-is-growing-so-who-wants-them-and-why-83872">increasing density</a> sensitively in built-up areas. They can also be clustered together to create new communities. </p>
<p>Conventional strategies such as more greenfield land releases, relaxed planning controls and subsidies for first-home buyers have <a href="https://theconversation.com/the-market-has-failed-to-give-australians-affordable-housing-so-dont-expect-it-to-solve-the-crisis-192177">failed to solve the complex challenges</a> of a seriously dysfunctional housing market. We need to experiment with new approaches to housing, and learn as we go. </p>
<p>Unconventional dwellings like tiny homes can make an important contribution. Our survey suggests planners around the country are willing to join in the process of developing and regulating these news ways of living.</p>
<hr>
<p><em>If you work for a local council and would like to participate in our survey, you can find it <a href="https://prodsurvey.rcs.griffith.edu.au/LGAHousingSurvey">here</a>.</em> </p>
<p><em>The authors would like to thank <a href="https://theconversation.com/profiles/natalie-osborne-282804">Dr Natalie Osborne</a> for her help with survey design and testing.</em></p><img src="https://counter.theconversation.com/content/199667/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Paul Burton receives funding from the Australian Research Council and the City of Gold Coast and is an active member of the Planning Institute of Australia.</span></em></p><p class="fine-print"><em><span>Heather Shearer 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>Despite a common belief that councils won’t approve tiny houses and modular and container homes, early findings from a national survey suggest planners are increasingly open to these housing options.Heather Shearer, Research Fellow, Cities Research Institute, Griffith UniversityPaul Burton, Professor of Urban Management & Planning, Griffith UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1986542023-01-30T21:05:18Z2023-01-30T21:05:18ZPublicly owned land should be used for affordable housing, not sold to private developers<figure><img src="https://images.theconversation.com/files/507018/original/file-20230130-24-9z07f6.jpg?ixlib=rb-1.1.0&rect=111%2C208%2C2779%2C1823&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">When land is publicly owned, it can be used to build the kind of housing the market is unwilling, or unable, to build.</span> <span class="attribution"><span class="source">(Shutterstock)</span></span></figcaption></figure><p>On Jan. 25, Prime Minister Justin Trudeau pledged to <a href="https://www.thespec.com/news/hamilton-region/2023/01/25/hamilton-affordable-housing-lrt.html">“ensure” affordable housing is built along Hamilton’s light rail transit (LRT) route</a>. While this is welcome news, there are many uncertainties about how this will actually happen. </p>
<p>Building and maintaining affordable housing near good transit is one of the biggest challenges cities face today. It’s not just Hamilton, Ont.: <a href="https://www.toronto.ca/services-payments/streets-parking-transportation/transit-in-toronto/transit-expansion/">Toronto</a>, <a href="https://www.mississauga.ca/projects-and-strategies/city-projects/hurontario-light-rail-transit">Mississauga, Ont.</a>, <a href="https://www.brampton.ca/EN/residents/transit/Projects-Initiatives/Pages/Welcome.aspx">Brampton, Ont.</a>, <a href="https://www.regionofwaterloo.ca/en/exploring-the-region/stage2ion.aspx">Waterloo, Ont.</a>, <a href="https://ottawa.ca/en/planning-development-and-construction/major-projects/stage-2-light-rail-transit-project">Ottawa</a>, <a href="https://www.cbc.ca/news/canada/montreal/quebec-city-third-link-tramway-1.6029933">Québec City</a>, <a href="https://dailyhive.com/montreal/rem-light-rail-train-mcgill-station">Montréal</a>, <a href="https://www.calgary.ca/green-line.html">Calgary</a>, <a href="https://globalnews.ca/news/8737356/bc-government-legislative-powers-land-transit-hubs/">Vancouver</a> and <a href="https://www.edmonton.ca/projects_plans/transit/future-lrt-projects">Edmonton</a> are all constructing or planning new transit lines. </p>
<p>However, without proactive approaches from all levels of government, <a href="https://mitpress.mit.edu/9780262536851/transit-oriented-displacement-or-community-dividends/">gentrification and displacement</a> will accompany these new trains.</p>
<p>Fortunately, there are solutions right in front of us.</p>
<h2>Public vs. private ownership</h2>
<p>Metrolinx, a provincial government agency, has <a href="https://www.cbc.ca/news/canada/hamilton/metrolinx-lrt-demolition-1.6207825">acquired large sections of land</a> for the construction of many of these LRTs, including in Hamilton. Once trains are running, most of this land will no longer be needed. Typically, surplus public land is sold on the open market to the highest bidder. But that’s not the only approach.</p>
<p>What happens to publicly owned land along new transit lines will determine whether or not they will be affordable places to live. </p>
<figure class="align-center ">
<img alt="A man in a blue dress shirt and suit jackets speaks from behind a podium" src="https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/506884/original/file-20230127-25-6v77bq.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">Prime Minister Justin Trudeau speaks to the media at the McMaster Automotive Resource Centre, in Hamilton, Ont., during the Liberal Cabinet retreat on Jan. 25, 2023.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Nick Iwanyshyn</span></span>
</figcaption>
</figure>
<p>If this land is <a href="https://www.cbc.ca/news/canada/toronto/ryerson-university-report-affordable-housing-downtown-parcel-sold-1.5115645">sold to private developers</a>, Canadians are unlikely to see significant amounts of affordable housing built for low- or moderate-income households. </p>
<p>This is a triple blow to these communities: new housing is too expensive, existing affordable housing is being lost through <a href="https://acorncanada.org/resources/save-rental-replacement-bylaws-protect-affordable-housing/">demolition</a>, <a href="https://www.homelesshub.ca/sites/default/files/attachments/august-financialization-rental-housing-ofha-en.pdf">renoviction</a> and <a href="https://doi.org/10.1016/j.geoforum.2017.04.011">gentrification</a>, and people who rely on transit will have <a href="https://doi.org/10.1111/gec3.12203">few housing options</a> along routes.</p>
<p>But if this land is kept in public ownership, the future of affordable housing is brighter. Although Metrolinx has no history of doing so, the pieces are in place to use this publicly owned land to build the kind of housing the market is unwilling, or unable, to build.</p>
<p>The province could retain this land and transfer it to the Ministry of Municipal Affairs and Housing and use it for social housing. Even if the province wants to sell the land, there are possibilities.</p>
<h2>A culture shift is needed</h2>
<p>In Ontario, provincially owned land — <a href="https://www.metrolinx.com/en/about-us/doing-business-with-metrolinx/development-opportunities/land-opportunities">including land owned by Metrolinx</a> — is subject to the <a href="https://www.ontario.ca/page/ontarios-realty-directive">Ontario Realty Directive</a>. This directive gives other public entities, like the federal government or municipalities, the right to acquire surplus provincial properties before they are sold on the open market. </p>
<p>Cities <a href="https://globalnews.ca/news/9300122/ontario-metrolinx-affordable-housing-surplus-land-criticism/">rarely exercise their option to buy surplus provincial land</a>, partly because it takes time (and money) to do so, but also because of a culture that emphasizes <a href="https://www.versobooks.com/books/2870-capital-city">the role of the private sector</a>, rather than the public, in developing housing.</p>
<p>The federal government could also acquire land under the directive and build housing on it funded by the <a href="https://www.placetocallhome.ca/what-is-the-strategy">National Housing Strategy</a>. So far, this strategy has produced very little affordable housing for households in need. <a href="https://www.theglobeandmail.com/opinion/article-governments-across-canada-need-common-income-based-definition-of/">A change is clearly necessary</a>.</p>
<p>The provincial government can also be much more proactive. The <a href="https://files.ontario.ca/mmah-housing-affordability-task-force-report-en-2022-02-07-v2.pdf">Ontario Housing Affordability Task Force</a> recommended that all future government land sales have a 20 per cent affordable housing requirement. Unfortunately, this recommendation has not been adopted. </p>
<p>In 2022, <a href="https://www.cbc.ca/news/canada/toronto/provincial-land-transit-hub-private-developer-sale-1.6330555">Metrolinx sold a parking lot in Port Credit</a> — located next to a GO station, right at the start of the Hurontario LRT line — to a private developer for $64.5 million, with no requirement for any affordable housing.</p>
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Read more:
<a href="https://theconversation.com/has-ontarios-housing-plan-been-built-on-a-foundation-of-evidentiary-sand-198133">Has Ontario’s housing 'plan' been built on a foundation of evidentiary sand?</a>
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<p>A culture shift around provincially owned land needs to come from the top — from Minister of Transportation Caroline Mulroney, Minister of Municipal Affairs and Housing Steve Clark, and from Premier Doug Ford himself. </p>
<p><a href="https://www.cbc.ca/news/canada/toronto/ontario-passes-housing-bill-23-1.6666657">With the passing of Bill 23</a>, Ford has an ambitious plan to build new homes in Ontario, but <a href="https://www.thestar.com/opinion/contributors/2022/10/26/the-province-is-setting-a-housing-affordability-trap-for-toronto.html">more direction is needed</a> to shape what kind of housing gets built and for whom.</p>
<figure class="align-center ">
<img alt="A GO Transit train sits parked at a station" src="https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/506907/original/file-20230127-14-dsg1vf.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">Building and maintaining affordable housing near good transit is one of the biggest challenges cities face today.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Tara Walton</span></span>
</figcaption>
</figure>
<h2>Genuinely affordable housing</h2>
<p>The private market is <a href="https://theconversation.com/housing-is-both-a-human-right-and-a-profitable-asset-and-thats-the-problem-172846">very good at building a lot of small condo units</a>, especially along new transit lines. In <a href="https://doi.org/10.1016/j.geoforum.2021.06.013">Waterloo</a>, where I work, more than $4 billion has been invested along the LRT corridor. Most of this investment was made before the line opened, meaning these kinds of conversations need to happen today, not five years from now.</p>
<p>What the private market is not good at is <a href="https://theconversation.com/more-housing-supply-isnt-a-cure-all-for-the-housing-crisis-188342">building genuinely affordable housing</a> and <a href="https://uwaterloo.ca/environment/news/renters-kitchener-waterloo-are-diverse-their-rental-options">family-sized units</a> for households on a range of incomes.</p>
<p>Not all the new housing on publicly owned land has to be social housing, though we do need a lot more of it. A <a href="https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.insights-views.social-housing--january-18--2023-.html">recent Scotiabank report</a> noted that even if Canada doubled its percentage of social housing, we would only be at the Organisation for Economic Co-operation and Development and G7 averages.</p>
<p>Within our current planning rules, the questions of what to build and for whom are left to the market. One of the few tools cities have to shape private development is <a href="http://justwebsites.ca/inclusionaryhousing/wp-content/uploads/sites/2/2019/10/August-CIP-2018.pdf">inclusionary zoning</a>, which requires a certain percentage of affordable housing be built in new developments.</p>
<p>Most cities have yet to establish their policies, but <a href="https://www.ola.org/en/legislative-business/bills/parliament-43/session-1/bill-23">Bill 23 will restrict affordable housing</a> to five per cent of units for a maximum of 25 years, with rents at 80 per cent of market rates. This approach won’t do anything for families in <a href="https://www.placetocallhome.ca/national-housing-council/media-newsroom/analysis-affordable-housing-supply-created-unilateral-nhs-programs">core housing need</a> — households that spend more than 30 per cent of their income on shelter. It is also a far cry from the <a href="https://www.toronto.ca/city-government/planning-development/planning-studies-initiatives/inclusionary-zoning-policy/inclusionary-zoning-overview/">City of Toronto’s inclusionary zoning plan</a> which called for 22 per cent of new units to be affordable by 2030.</p>
<h2>Thinking beyond the market</h2>
<p>When land is publicly owned, we can set the terms of development and be much more ambitious and creative. It would be possible, for example, to stipulate that new owner-occupied units be the primary residences of their owners, a model <a href="https://whistlerhousing.ca/">already practised in Whistler, B.C.</a>.</p>
<figure class="align-center ">
<img alt="A street car drives down the centre of a two-way street. Condos and apartment buildings are seen in the background" src="https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=401&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=401&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=401&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507149/original/file-20230130-7092-7ufo5h.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">Along new transit lines, the private market is good at building a lot of small condo units, not family-sized units for households on a range of incomes.</span>
<span class="attribution"><span class="source">(Brian Doucet)</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>In Ontario, where <a href="https://www.cbc.ca/news/canada/toronto/investors-in-ontario-real-estate-market-1.6258199">a quarter of all homebuyers are investors</a>, this would <a href="https://theconversation.com/want-to-solve-the-housing-crisis-address-super-charged-demand-169809">reduce demand by eliminating speculation</a> on publicly owned land.</p>
<p>Cities could use their land for <a href="https://www.thestar.com/opinion/contributors/2023/01/07/why-dont-we-zone-for-rental-apartments.html">purpose-built rentals</a>, with rents set at a ratio of a tenant’s income, rather than a little bit below market rates. They could also lease sites to non-profits to build supportive housing, as <a href="https://www.cbc.ca/news/canada/kitchener-waterloo/blockline-road-new-supportive-housing-erin-kloos-1.6456499">Kitchener recently did</a>. Publicly owned land also plays a key role in <a href="https://www.landbackcamp.com/">reconciliation with Indigenous communities</a>, who disproportionately struggle to find adequate and affordable housing.</p>
<p>In a housing crisis, publicly owned land should never be sold to private developers in the hopes of getting <a href="https://www.ohba.ca/wp-content/uploads/2019/04/cur_report_surplus_lands_april2019.pdf">a few crumbs of affordable housing</a> out of the deal. By assuming the private market has a monopoly on housing development, we ignore the genuinely transformative solutions that are hiding in plain sight. </p>
<p>Thinking beyond the market, and using publicly owned land creatively, is the only way Trudeau’s pledge to ensure affordable housing along Hamilton’s LRT corridor will actually result in housing for the people who need it.</p><img src="https://counter.theconversation.com/content/198654/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Brian Doucet receives funding from SSHRC, the Canada Research Chairs program and the Hamilton Community Foundation. Some of his research is conducted in partnership with the Social Development Centre Waterloo Region. He has co-written reports on housing and mobility for local governments in Ontario. . </span></em></p>In a housing crisis, publicly owned land should never be sold to private developers and should instead be used to build the kind of housing the market is unwilling and unable to build.Brian Doucet, Canada Research Chair in Urban Change and Social Inclusion, University of WaterlooLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1883422022-08-30T19:12:15Z2022-08-30T19:12:15ZMore housing supply isn’t a cure-all for the housing crisis<figure><img src="https://images.theconversation.com/files/481913/original/file-20220830-33800-i4wrpf.jpg?ixlib=rb-1.1.0&rect=16%2C0%2C5429%2C3502&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Housing policy-makers should pay attention not only to how much housing is available and how often rental units turn over, but to residential stability and the quality of life that homes and neighbourhoods provide.</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/more-housing-supply-isn-t-a-cure-all-for-the-housing-crisis" width="100%" height="400"></iframe>
<p>Canada needs to build more homes, faster, according to a <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/housing-shortages-canada-solving-affordability-crisis">recent report by the Canada Mortgage and Housing Corporation</a>. The report estimates that British Columbia alone will need <a href="https://www.cmhc-schl.gc.ca/en/blog/2022/canadas-housing-supply-shortage-restoring-affordability-2030">570,000 new units</a> by 2030 to meet a moderate affordability level of 44 per cent. </p>
<p>Not coincidentally, building more housing has gained steam among policy-makers, <a href="https://vancouversun.com/news/local-news/eby-says-top-priority-bc-premier-housing">including David Eby</a>, B.C.’s minister of housing and <a href="https://www.cbc.ca/news/canada/british-columbia/david-eby-ndp-leader-1.6525622">frontrunner candidate to replace John Horgan</a> as NDP party leader and premier of the province.</p>
<p>While it’s important to recognize the lack of affordable housing as part of the housing crisis, the problem with our housing system isn’t as simple as the disequilibrium between supply and demand. Increasing market housing supply will not end the housing crisis on its own. </p>
<p>Drawing on a B.C.-wide survey of 1,004 residents conducted from March to April 2021, <a href="https://summit.sfu.ca/item/31490">our recent study</a> shows that unaffordability is only one type of housing vulnerability that has taken its toll on British Columbians during the COVID-19 pandemic. </p>
<h2>Market rental tenants hit hardest</h2>
<p>The COVID-19 pandemic brought about a <a href="https://www.healthaffairs.org/do/10.1377/forefront.20200609.53823/">second pandemic of social isolation</a> through the public health measures put in place to combat the spread of the disease. </p>
<p>While <a href="https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/guidance-documents/summary-evidence-supporting-covid-19-public-health-measures.html">necessary and largely effective</a>, these restrictions took their toll on well-being: between 40 and 50 per cent of respondents reported physical and mental health declines one year into the pandemic. </p>
<p>However, these negative secondary effects of the pandemic did not impact everyone equally. Our study found that homeowners fared the best in mental and social well-being, while market rental tenants fared the worst. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A line graph illustrating the mental well-being of survey respondents" src="https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=299&fit=crop&dpr=1 600w, https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=299&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=299&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=376&fit=crop&dpr=1 754w, https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=376&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/481179/original/file-20220825-18-79i9zy.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=376&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Changes in mental well-being by housing tenure during the COVID-19 pandemic.</span>
<span class="attribution"><span class="source">(Community Housing Canada)</span></span>
</figcaption>
</figure>
<p>Most surprisingly, community housing tenants (those living in subsidized, non-profit or co-op housing) reported the same level of mental well-being as those who owned a mortgage. </p>
<p>Community housing tenants also appeared less restricted in their social interactions — 43 per cent of this group reported reduced social interactions during the pandemic, compared to over 60 per cent of market housing tenants and homeowners with a mortgage.</p>
<p>The disparity in well-being outcomes demonstrates that policy that only addresses housing affordability fails to take the lessons learned from the COVID-19 pandemic about well-being into account. </p>
<h2>Housing vulnerability more than ‘core housing needs’</h2>
<p>The official <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-research/core-housing-need">core housing needs indicators</a> used to assess housing vulnerability in Canada are unaffordability, overcrowding and poor dwelling quality. We argue that Canadian housing policy needs to go beyond them. </p>
<p>We found that market housing tenants were more likely to live in inadequate housing that was too expensive, in ill repair or inadequate in size. In comparison, only 11 per cent of community housing tenants were dissatisfied with housing adequacy, giving high ratings to housing affordability in particular. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A bar graph measuring how satisfied or dissatisfied survey respondents were about their housing situation" src="https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=292&fit=crop&dpr=1 600w, https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=292&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=292&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=367&fit=crop&dpr=1 754w, https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=367&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/481175/original/file-20220825-831-nu0g4m.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=367&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Housing inadequacy by tenure. Respondents were asked whether they were satisfied or dissatisfied about the space, affordability and condition of their residency. Overall dissatisfaction was defined by an average score below three, out of five.</span>
<span class="attribution"><span class="source">(Community Housing Canada)</span></span>
</figcaption>
</figure>
<p>However, our research shows the pandemic has brought to light forms of housing vulnerability beyond inadequacy, such as housing instability, the ability to stay safe and healthy at home and reduced access to neighbourhood amenities and resources.</p>
<h2>Housing instability</h2>
<p>A small proportion of survey respondents expressed a sense of residential instability, meaning they felt they were unable to stay in their dwelling without interruptions or complications. Our study found that 15 per cent of market housing tenants experienced housing instability, compared to 11 per cent of community housing tenants.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A bar graph measuring how stable survey respondents felt their housing situation was" src="https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=395&fit=crop&dpr=1 600w, https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=395&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=395&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=496&fit=crop&dpr=1 754w, https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=496&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/481177/original/file-20220825-739-c8lzgc.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=496&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Housing stability by tenure. Survey respondents were asked how stable they felt their housing situation was.</span>
<span class="attribution"><span class="source">(Community Housing Canada)</span></span>
</figcaption>
</figure>
<h2>Limited housing affordances</h2>
<p>Housing affordances are housing features or functions that improve people’s everyday lives. In the context of the pandemic, this meant how dwelling spaces allowed residents to practice physical distancing and cope with <a href="https://storymaps.arcgis.com/stories/05ec1a9375684ecabd551c137f4ccefb">secondary effects of the pandemic</a>. </p>
<p>Nearly a quarter of respondents found it difficult to host occasional visits from family members and friends during the pandemic, while 19 per cent had trouble working or studying from home and 18 per cent had difficulty exercising at home. Some also reported difficulty maintaining physical distances with non-family members.</p>
<p>Market housing tenants faced above-average challenges in all aspects. Community housing tenants fared better, reporting less-than-average constraints for all activities except hosting visits from family and friends.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A bar graph measuring how how difficult survey respondents found accessing certain activities and resources, like exercise and the internet, where they live" src="https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/481178/original/file-20220825-16-h7l55q.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Limited housing affordances by tenure. Respondents were asked about how difficult (very, difficult, easy, very easy, not applicable) it was to access certain activities and resources where they live.</span>
<span class="attribution"><span class="source">(Community Housing Canada)</span></span>
</figcaption>
</figure>
<h2>Neighbourhood inaccessibility</h2>
<p>Neighbourhood accessibility is how satisfied respondents were with access to neighbourhood amenities and facilities, such as public transit, stores, private and public open spaces and community programs.</p>
<p>Most respondents were satisfied with neighborhood accessibility. Homeowners were less satisfied than renters with their access to public transit, likely due to the lack of public transit in certain parts of the province.</p>
<p>Both renter groups — 25 per cent of market housing and 15 per cent of community housing tenants — were unhappy with access to private outdoor spaces. This could be because <a href="https://ncceh.ca/documents/evidence-review/canadian-green-spaces-during-covid-19-public-health-benefits-and-planning">access to parks and public spaces was restricted</a> during the pandemic and more renters tend to live in apartments without balconies.</p>
<h2>A window to better social policy</h2>
<p><a href="https://summit.sfu.ca/item/31641">Housing vulnerability</a> means more than the lack of affordable housing — it also means housing instability, lack of housing affordances and access to neighbourhood amenities. Renters in the private market demonstrated unexpected housing vulnerability, faring worse than community housing tenants in important ways. </p>
<p>It’s clear the market alone doesn’t deliver housing as a social good; more extensive solutions to the housing crisis will come from understanding the <a href="https://www.taylorfrancis.com/chapters/oa-edit/10.4324/9781003172949-24/social-sustainability-social-affordable-housing-meryn-severson-esther-de-vos">social role of housing in building household and community resilience</a>. </p>
<figure class="align-center ">
<img alt="A cyclist and two people make their way down a tree-lined outdoor path" src="https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/480938/original/file-20220824-4398-vx3nli.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">Addressing housing vulnerability also means addressing housing instability, lack of housing affordances or lack of access to neighbourhood amenities, like access to public outdoor spaces.</span>
<span class="attribution"><span class="source">THE CANADIAN PRESS/Sean Kilpatrick</span></span>
</figcaption>
</figure>
<p>Here, community housing models offer some evident clues, such as the ways in which <a href="https://theprovince.com/opinion/marc-lee-to-build-affordable-rental-housing-lets-change-the-game">housing is supplied and operated</a> and the efforts to <a href="https://www.heyneighbourcollective.ca/2022/08/mainstreaming-sociable-design-for-multi-unit-housing-mapping-the-path-forward/">foster social connections and support</a> in these communities.</p>
<p>While increasing the housing supply may moderate the affordability problem, policy-makers should be wary of vulnerabilities introduced by the market system beyond core housing needs, as our study reveals, especially for those who cannot afford home ownership. </p>
<p>To build long-term community resilience, public policies should pay attention not only to housing adequacy, but also to <a href="https://www.ohchr.org/en/special-procedures/sr-housing/security-tenure-cornerstone-right-adequate-housing">residential stability</a> and the quality of life that homes and neighbourhoods provide. </p>
<p>Without a holistic understanding of the lived and social realities of what it means to be safe and sound at home, we lose crucial opportunities to meet important social policy goals through our housing plans and policy.</p><img src="https://counter.theconversation.com/content/188342/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Our work is supported by the Partnership Engage Grants COVID-19 Special Initiative
sponsored by the Social Sciences and Humanities Research Council. This
partnership is led by Dr. Yushu Zhu and Dr. Meg Holden at Simon Fraser University, in collaboration with Brightside
Community Homes Foundation.
This project also receives support from and contributes to the work of “Community Housing Canada: Partners in
Resilience” (CHC), a 5-year academic-community partnership supported by the Social Sciences and Humanities
Research Council. The CHC project is directed by Dr. Damian Collins at the
University of Alberta (host institution), in collaboration with Civida. </span></em></p><p class="fine-print"><em><span>Dorin Vaez Mahdavi and Meg Holden 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>Unaffordability is only one type of housing vulnerability that has taken its toll on British Columbians during the COVID-19 pandemic.Yushu Zhu, Assistant Professor, Urban Studies and Public Policy, Simon Fraser UniversityDorin Vaez Mahdavi, Master's Student, Urban Studies Program, Simon Fraser UniversityMeg Holden, Professor, Urban Studies and Professor of Resource and Environmental Management, Simon Fraser UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1881142022-08-15T17:50:52Z2022-08-15T17:50:52ZMultigenerational living: A strategy to cope with unaffordable housing?<figure><img src="https://images.theconversation.com/files/478139/original/file-20220808-22-4wrly6.JPG?ixlib=rb-1.1.0&rect=8%2C0%2C5848%2C3904&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Multiple generations living under one roof is becoming increasingly common.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Cole Burston</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/multigenerational-living--a-strategy-to-cope-with-unaffordable-housing" width="100%" height="400"></iframe>
<p>Over the past 20 years, <a href="https://data.oecd.org/price/housing-prices.htm">housing prices in Canada have increased at double the rate of income growth</a>. As a result, a growing number of Canadian households are grappling with housing affordability. </p>
<p>Today, <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-data/data-tables/household-characteristics/characteristics-households-core-housing-need-canada-pt-cmas">10 per cent of Canadian households are spending at least 30 per cent of their pretax income on housing</a>. </p>
<p>At the same time, <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.pdf">the share of multigenerational households has also increased by 45 per cent</a> — <a href="https://vanierinstitute.ca/sharing-a-roof-multigenerational-homes-in-canada-2021-census-update/">more than any other family living arrangement</a>. Most of these <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220713/dq220713a-eng.pdf">multigenerational households include grandparents and young children</a>. </p>
<p>The simultaneous rise in housing prices and share of multigenerational households raises the following questions: First, is moving in with aging parents a strategy adopted by young families to reduce their housing vulnerability? Second, who benefits the most by moving in with grandparents?</p>
<p>Our <a href="http://dx.doi.org/10.31235/osf.io/t657q">study addressed these questions</a> and examined whether moving in with grandparents may be a solution to unaffordable housing. </p>
<p>Living with grandparents may offer young families a way to reduce their housing costs, decrease their housing vulnerability, and free up resources for food, medical care and education. </p>
<p>By moving in with grandparents, young families can avoid a host of negative outcomes associated with housing vulnerability, including children’s <a href="https://doi.org/10.1080/10511482.2005.9521542">poorer academic outcomes</a>, <a href="https://housingmatters.urban.org/articles/how-housing-affects-childrens-outcomes">behavioural problems</a> and <a href="https://doi.org/10.1016/j.amepre.2010.08.002">poorer health</a>. </p>
<h2>Unequal distribution of benefits</h2>
<p>The benefits of living in multigenerational households are unevenly distributed. We found that children whose mothers had lower income benefited more from living with their grandparents than those whose mothers had higher income. Similarly, children growing up in single-mother households benefited more from living with their grandparents than those growing up in two-parent households. </p>
<p>Conversely, children with grandparents who had higher income benefited more from living with their grandparents. And those living with grandmothers benefited more than children living solely with their grandfathers. Prior research shows <a href="https://doi.org/10.1093/geronb/gbw208">grandmothers usually provide more financial and emotional support to their adult children and grandchildren than grandfathers</a>. </p>
<p>Our findings suggest that multigenerational living is usually a way for grandparents to offer housing assistance and <a href="https://www.researchgate.net/publication/278435302_Coresidence_between_unmarried_aging_parents_and_their_adult_children_-_Who_moved_in_with_whom_and_why">transfer material resources to their adult children</a>. The implication is that young families generally benefit more financially from this living situation than aging parents. </p>
<p>Low-income grandparents are an exception. By moving in with their adult children, they can receive financial help, emotional support and care, and may benefit more from multigenerational living than young families. </p>
<figure class="align-center ">
<img alt="A grandmother is hugged by her granddaugher." src="https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=402&fit=crop&dpr=1 600w, https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=402&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=402&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=505&fit=crop&dpr=1 754w, https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=505&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/478141/original/file-20220808-20-cnvglr.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">Children living with grandmothers benefited more than children living solely with their grandfathers.</span>
<span class="attribution"><span class="source">(Ekaterina Shakharova/Unsplash)</span></span>
</figcaption>
</figure>
<h2>Adverse effects of multigenerational living</h2>
<p>The benefits of multigenerational living, however, may come at the expense of sufficient space and privacy. These living arrangements were more likely than two-generation households to be overcrowded. </p>
<p><a href="https://doi.org/10.2105/AJPH.92.5.758">Living in overcrowded housing is associated with poorer health outcomes</a>, <a href="https://doi.org/10.1080/00324720127685">poorer relationship quality</a> and <a href="https://www.ncbi.nlm.nih.gov/books/NBK535289/">more stress</a> for all household members. It can also have a <a href="https://doi.org/10.1016/j.ssresearch.2011.09.012">negative impact on academic outcomes and increase behavioural problems for children</a>. </p>
<p>Multigenerational living may also negatively impact the financial well-being of grandparents. Some older adults may be <a href="https://doi.org/10.1080/14036096.2019.1653360">paying for their adult children’s expenses as well as their own</a>. This may place a strain on their finances or generate a need for them to delay retirement. </p>
<h2>Policy implications</h2>
<p>Some families and older adults may <em>prefer</em> to live in multigenerational households. However, for others, a shortage of affordable housing may be creating conditions that <em>force</em> them to move in with their aging parents. </p>
<p>So, what can the government do to eliminate the conditions that force some families into multigenerational households?</p>
<p>The Canadian government must increase housing supply. Increasing interest rates can temporarily decrease pressures in the housing market by reducing demand. However, <a href="https://economics.cibccm.com/cds?id=2584c18b-2e87-4a1c-83c8-17bb64d8bb4d&flag=E">it can also exacerbate the housing shortage and affordability crisis over the long run through cancellations in housing construction projects</a>. </p>
<p>According to the Canadian Mortgage and Housing Corporation, <a href="https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/housing-research/research-reports/2022/housing-shortages-canada-solving-affordability-crisis-en.pdf?rev=88308aef-f14a-4dbb-b692-6ebbddcd79a0">Canada needs 3.5 million new homes to reach affordability</a>.</p>
<p>The government must also produce estimates of unmet housing demands that go beyond projecting the quantity of the housing shortage. It must forecast the <em>quantity</em> and <em>types</em> of housing for which there is unmet demand and meet it. For example, the shortage of large housing units may be part of the reason why multigenerational households have a higher risk of living in overcrowded housing.</p>
<p>Overall, our study reveals that the housing affordability crisis is having a pervasive impact on Canadian society. It is imposing constraints that alter the structure and composition of Canadian families. It is also forcing many families to absorb some of the effects of a social problem: the shortage of affordable housing.</p><img src="https://counter.theconversation.com/content/188114/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 receives Doctoral funding from the Social Sciences and Humanities Research Council. </span></em></p>Our study reveals that the housing affordability crisis is having a pervasive impact on Canadian society. It is imposing constraints that alter the structure and composition of Canadian families.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/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/1767782022-03-14T12:22:36Z2022-03-14T12:22:36ZAffordable housing in the US is increasingly scarce, making renters ask: Where do we go?<figure><img src="https://images.theconversation.com/files/451075/original/file-20220309-1737-4p8f7j.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Community organizers speak in a vacant house in West Oakland, Calif., that they occupied in 2019 and 2020 to bring attention to affordable housing.</span> <span class="attribution"><a class="source" href="https://media.gettyimages.com/photos/moms-4-housing-founder-dominique-walker-and-others-talk-in-the-dining-picture-id1199390012?s=2048x2048">Jane Tyska/Digital First Media/East Bay Times via Getty Images</a></span></figcaption></figure><p>The United States is facing an expanding gap between how much workers earn and how much they have to pay for housing. </p>
<p>Workers have faced <a href="https://hbr.org/2017/10/why-wages-arent-growing-in-america">stagnant wages</a> for the past 40 years. Yet the cost of rent has steadily increased during that time, with <a href="https://www.redfin.com/news/redfin-rental-report-december-2021/">sharp increases of 14% to 40% </a> over the past two years. </p>
<p>Now, more than ever, workers are feeling the stress of the affordable housing crisis. </p>
<p>While I was conducting research in economically hard-hit communities from Appalachia to Oakland, California, for my recent <a href="https://www.politybooks.com/bookdetail?book_slug=living-on-the-edge-when-hard-times-become-a-way-of-life--9781509548231">book, published in November 2021</a>, nearly every person I met was experiencing the painful reality of being caught between <a href="https://www.cbpp.org/blog/rents-have-risen-more-than-incomes-in-nearly-every-state-since-2001">virtually stagnant wages and rising housing costs</a>. </p>
<p><a href="https://cmpascale.org/">As a sociologist,</a> I had expected that low-wage workers would struggle with the cost of housing. I did not expect to meet people who worked two jobs and lived with roommates and still struggled to pay their bills. </p>
<p>For perspective, a person making US$14 an hour would have to work 89 hours a week to cover the rent on a “modest” one-bedroom rental, estimated to cost $1,615 per month, according to a <a href="https://nlihc.org/sites/default/files/oor/2021/Out-of-Reach_2021.pdf">2021 study by the National Low-Income Housing Coalition</a>. </p>
<p>Millions of workers earn less than $14 an hour. Among U.S. employees, the average hourly earnings, adjusted for inflation, were only <a href="https://www.statista.com/statistics/216259/monthly-real-average-hourly-earnings-for-all-employees-in-the-us/#:%7E:text=In%20January%202022%2C%20the%20average,data%20have%20been%20seasonally%20adjusted">$11.22 in 2022</a>. </p>
<p>In January 2022, median rents in the U.S. reached their highest level yet. <a href="https://www.realtor.com/research/january-2022-rent/">The average median cost</a> of one-bedroom units in the 50 largest metro areas rose from $1,386 in 2020 to $1,652 in 2022.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man is shown outside of a moving truck, next to a row of new attached houses." src="https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=360&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=360&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=360&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=453&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=453&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451084/original/file-20220309-15-8rxxu0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=453&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">New affordable housing units in Irvine, Calif., are shown on Jan. 26, 2022.</span>
<span class="attribution"><a class="source" href="https://media.gettyimages.com/photos/residents-start-to-move-into-sage-park-irvines-new-affordable-housing-picture-id1238006154?s=2048x2048">Mindy Schauer/Digital First Media/Orange County Register via Getty Images</a></span>
</figcaption>
</figure>
<h2>‘Now I’m having to scrounge’</h2>
<p>I interviewed PL (a pseudonym) for my recent book. He is <a href="https://www.jchs.harvard.edu/calendar/americas-rental-housing-2022">among the 44 million</a> people in the U.S. who rent their homes.</p>
<p>PL is a longtime Oakland, California, resident, who works full time in a professional career. Despite employment stability, his financial circumstances are worsening.</p>
<p>“Rent is raised dramatically from year to year. I work in a nonprofit organization, so I don’t get a raise every year,” PL told me during an interview in 2018. His monthly rent increased by $250 over the previous three years. Yet his salary remained static. </p>
<p>“That $250 was going toward the grocery bills, the gas bills. Now I’m having to scrounge,” PL said. </p>
<p>PL is not alone.</p>
<p>Households that spend more than 30% of their income on rent are referred to as “cost burdened,” according to the U.S. Department of Housing and Urban Development. In 2019, <a href="https://www.habitat.org/costofhome/2020-state-nations-housing-report-lack-affordable-housing">37.1 million households</a>, or 30.2% of all U.S. households, fit this category. The <a href="https://theconversation.com/affordable-housing-in-pandemic-times-what-works-and-what-doesnt-177699">situation has worsened</a> since the pandemic.</p>
<p>The financial burden of the increasing cost of rent falls hardest on the <a href="https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2019">half of workers in the U.S. who earn less than $35,000</a> each year. After paying rent, about 80% of renter households with incomes under $30,000 have between <a href="https://www.jchs.harvard.edu/calendar/americas-rental-housing-2022">$360 and $490 left to cover all other</a> expenses, including food, health care, transportation and child care. </p>
<h2>Where can you live?</h2>
<p>Oakland has been described by gentrification experts as the new center of the nationwide <a href="https://www.mercurynews.com/2020/03/03/we-are-fed-up-new-surge-of-housing-activism-spurs-change-in-oakland/">affordable housing crisis</a>. </p>
<p>A growing tech industry in San Francisco, a lack of affordable housing, weak rent control laws and a predominance of low-wage service industry jobs contribute to the shortage of affordable housing in Oakland. </p>
<p>Vanessa Torres is one of the more than 15,000 people who live in a low-income neighborhood in Oakland known as “the Deep East.” When I spoke with Torres in 2020, the worry in her voice was clear.</p>
<p>“This is the ‘hood. If low-income Latinos can’t afford it anymore, well where do we go? If we can no longer afford to live in low-income communities that are considered dangerous, that are considered poor, then where do we see ourselves?” Torres said. </p>
<p>In 2019, <a href="https://www.zumper.com/rent-research/oakland-ca/downtown-oakland">the midpoint</a> for monthly rent for a one-bedroom apartment in Oakland was $2,300. </p>
<p>Torres would need to earn almost $50 per hour, approximately $96,000 a year, to be able to afford $2,300 a month in rent, according to the <a href="https://www.sfgate.com/expensive-san-francisco/article/San-Francisco-rent-wages-median-Oakland-Alameda-12879211.php">nonprofit California Housing Partnership Corp.</a>. Torres earns roughly $50,000 a year as an educator. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="A man walks past a building with graffiti, in front of tents and boxes." src="https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=357&fit=crop&dpr=1 600w, https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=357&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=357&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=449&fit=crop&dpr=1 754w, https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=449&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/451149/original/file-20220309-15-1my4t3g.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=449&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">California has one of the highest homeless rates in the country. Here, a man walks past tents in Los Angeles on April 26, 2021.</span>
<span class="attribution"><a class="source" href="https://media.gettyimages.com/photos/man-walks-past-tents-housing-the-homeless-on-the-streets-in-the-skid-picture-id1232545986?s=2048x2048">Frederic J. Brown/AFP via Getty Images</a></span>
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</figure>
<h2>Still seeking solutions</h2>
<p>Elected officials across the country have tried to address the affordable housing crisis through proposals to raise the <a href="https://edlabor.house.gov/imo/media/doc/2021-01-26%20Raise%20the%20Wage%20Act%20Fact%20Sheet.pdf">minimum wage</a> and to mandate more meaningful <a href="https://www.multihousingnews.com/a-deep-dive-into-growing-rent-control-laws-proposals/">rent control</a>. They have also proposed greater government investment in <a href="https://joebiden.com/housing/">affordable housing</a>, and pursued <a href="https://inclusionaryhousing.org/inclusionary-housing-explained/what-is-inclusionary-housing/#:%7E:text=Inclusionary%20housing%20programs%20are%20local,units%20to%20lower%2Dincome%20residents.">partnerships with developers</a>. As yet, none of these efforts has been successful to any significant extent. </p>
<p>Countries with more government control over the economy have taken a different approach to affordable housing. For example, <a href="https://static1.squarespace.com/static/5a99206bee17593d9ef5cceb/t/5f609207aed573278ae41bc4/1600164570274/NBO+%E2%80%93+Housing+Nordic_Housing+models+in+the+Nordic+Region.pdf">Nordic countries</a> treat the development of low- and medium-cost housing as a public utility. This <a href="https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.32.1.59">reduces and stabilizes</a> housing prices by removing the cost of land, construction, finance and management from the speculative market. They have succeeded in producing quality housing that is subsidized and permanently price restricted. </p>
<p>Known as <a href="https://static1.squarespace.com/static/5a99206bee17593d9ef5cceb/t/5f609207aed573278ae41bc4/1600164570274/NBO+%E2%80%93+Housing+Nordic_Housing+models+in+the+Nordic+Region.pdf">social housing</a> in Denmark, this strategy has produced 20% of the total available housing there. </p>
<p>Given the affordable housing problems in the U.S., taking stock of other options could provide some inspiration.</p>
<p>For PL, the Oakland renter feeling the squeeze of rising rents, as well as for many other full-time workers, the future doesn’t look any better. PL, who is in his mid-50s, told me he doesn’t see a way to retire. He would need to leave his community in order to retire, but he can’t imagine where he would go. The East Bay is his home. </p>
<p>[<em>More than 150,000 readers get one of The Conversation’s informative newsletters.</em> <a href="https://memberservices.theconversation.com/newsletters/?source=inline-140K">Join the list today</a>.]</p><img src="https://counter.theconversation.com/content/176778/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Celine-Marie Pascale does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It’s getting much harder in the US to find an affordable home, even for people who work multiple jobs.Celine-Marie Pascale, Professor of Sociology, American UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1206752019-08-05T20:01:38Z2019-08-05T20:01:38ZFocus on managing social housing waiting lists is failing low-income households<p>A need to manage waiting lists, rather than ensuring positive outcomes for tenant households, strongly influences social housing policy, <a href="https://www.ahuri.edu.au/research/final-reports/316">newly published research</a> finds. This situation is not only a result of operational policies, but also a shortage of social housing stock that is suitable for tenants and a lack of viable alternatives – namely affordable, safe and secure private housing. Eligible applicants who don’t have a “priority need” can wait up to ten years to be housed. They face strict eligibility checks just to remain on the waiting list.</p>
<p>Since the large-scale <a href="https://www.ahuri.edu.au/research/final-reports/309">post-war expansion to house working-class families</a>, the social housing sector has <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/housing-in-australia">shrunk relative to the rest of the housing system</a>. More than <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg4">140,000 people</a> are on public housing waiting lists. </p>
<p>Importantly, this figure does not capture <a href="https://www.ahuri.edu.au/research/final-reports/306">unmet demand</a> such as people sleeping rough and very low-income households in housing stress who are not on waiting lists. </p>
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<strong>
Read more:
<a href="https://theconversation.com/homelessness-australias-shameful-story-of-policy-complacency-and-failure-continues-95376">Homelessness: Australia's shameful story of policy complacency and failure continues</a>
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<p>Waiting lists also don’t include hidden demand such as people suspended from waiting lists or excluded by their <a href="https://www.homelessnessnsw.org.au/sites/homelessnessnsw/files/2018-12/Path%20to%20Nowhere_0.pdf">visa status</a>.</p>
<p>The supply of social housing stock simply does not match the growing numbers of households experiencing <a href="https://amplify.csi.edu.au/amplify-insights/">housing affordability problems</a>. Between 2011 and 2016, <a href="https://www.launchhousing.org.au/%20australianhomelessnessmonitor/">government spending</a> on social housing fell by 7% from A$1.42 billion to A$1.32 billion. Today, social housing is provided to over <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/housing-in-australia">800,000 tenants in more than 400,000 households</a> – 76% in public housing, 20% in community housing and 4% in Indigenous housing. </p>
<p>The expansion of public housing (delivered by state and territory housing authorities) to community housing and Indigenous housing (delivered by non-profit community organisations and Indigenous organisations) has transformed social housing. Community housing has <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/social-housing-dwellings">increased by 121%</a> between 2008-09 and 2017-18. This growth includes <a href="https://theconversation.com/growth-of-community-housing-may-be-an-illusion-the-cost-shifting-isnt-108598">tenanted stock transfers from public housing</a>. </p>
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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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<p>Against this background, policymakers are <a href="https://www.ahuri.edu.au/research/final-reports/316">increasingly seeking to promote housing “pathways”</a>. Operational housing policies are intended to improve tenant housing and social outcomes (such as well-being and economic participation), but also to manage long waiting lists and make the system more efficient. </p>
<p>These policies shape housing pathways, determining how tenants and households move into, within and out of social housing. But these pathways are also influenced by household relationships and a <a href="https://www.tandfonline.com/doi/abs/10.1080/140360902760385565">household’s changing needs</a>. What a tenant or family need from their housing changes when, for example, relationships break down, new relationships begin, children are born or children leave home. </p>
<p><a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0029/43679/AHURI-Final-Report-316-The-construction-of-social-housing-pathways-across-Australia.pdf">Our research</a> sought to better understand the policy context behind housing pathways and their impacts on tenants’ experience. </p>
<h2>Getting in</h2>
<p>Pathways into social housing begin with application, which is a centralised process in most states and territories (apart from the Northern Territory). Prospective tenants apply once through a single portal, with information shared between government housing departments and community housing providers.</p>
<p>The success of an application depends on a range of eligibility criteria (see Table 1), starting with income and assets. Even if a prospective tenant meets the income criteria, priority is given to people and households with specific or complex needs. What constitutes “specific or complex needs” varies, but generally includes disability, poor physical or mental health, experience of family violence, exiting institutions, or being homeless or at risk of homelessness (the <a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2019/contents/priority-groups-and-wait-lists#pg1">most common pathway into social housing</a>). </p>
<p>Other criteria include citizenship and residence status (including restrictions based on permanent residency/citizen status), age and tenancy history. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=259&fit=crop&dpr=1 600w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=259&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=259&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=326&fit=crop&dpr=1 754w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=326&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/285804/original/file-20190726-43153-1p9x80p.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=326&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">Table 1: Summary of common eligibility criteria.</span>
<span class="attribution"><a class="source" href="https://www.ahuri.edu.au/research/final-reports/316">Source: Powell et al 2019</a>, <span class="license">Author provided</span></span>
</figcaption>
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<p>An applicant’s place on the waiting list is continually checked. If an applicant is found to be ineligible, or simply does not respond, they may be suspended or removed from the list.</p>
<h2>Staying in</h2>
<p>Most states and territories have policies on the eligibility of tenants to continue in public housing. Criteria include income levels, use of the premises, and household change. What criteria are reviewed, and how often, varies widely. </p>
<p>Eligibility reviews mean tenants fear any extra income might result in an end to their tenure or having to make higher rent contributions. This potentially undermines their preparedness to undertake education and training, or take up work opportunities that might lead to greater independence.</p>
<h2>Moving within</h2>
<p>Policies allow tenants to apply for a transfer if household circumstances have changed. A dwelling might no longer be suitable – for example, as a result of overcrowding or family violence. </p>
<p>In practice, however, supply constraints make this challenging. Policies that transfer public housing properties to community housing providers result in tenants becoming less mobile as moving between public and community housing is not possible.</p>
<p>Landlord-initiated transfers can also occur. For example, property or housing estate renewal might require tenant relocation. A transfer might also be a result of tenant conduct or changes in eligibility status. </p>
<h2>Moving out</h2>
<p>Exits from social housing may occur when a tenant chooses to move to private housing or is evicted. Eviction may result from issues such as neighbourhood disputes, anti-social behaviour, rental arrears, a lease coming to an end, or changes to eligibility.</p>
<p>Tenants who are no longer eligible for social housing based on their income may also be evicted. These tenants often still have limited capacity to take on and manage a private rental tenancy.</p>
<p>Policy levers to help with moves out of social housing include: selling dwellings to tenants; providing private rent subsidies; rental transition programs; financial planning; and client-based needs planning. Some policies also target private landlords with a goal of increasing housing affordability and therefore pathways out of social housing. </p>
<p>By far the biggest obstacle to moving out of social housing, however, is the lack of affordable housing alternatives.</p>
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<p>
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<strong>
Read more:
<a href="https://theconversation.com/can-the-private-rental-sector-provide-a-secure-affordable-housing-solution-63880">Can the private rental sector provide a secure, affordable housing solution?</a>
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<h2>What this means</h2>
<p>While operational policy establishes formal pathways (by setting eligibility criteria and so on), what happens in practice may be different, as service providers can interpret and implement policies in different ways, with different effects for tenants. </p>
<p>Further, what is known about the housing pathways of tenants moving in, within and out of social housing is based on partial evidence. It comes from social housing providers themselves (missing information about events prior to and following occupancy), or from survey research seeking to fill some of the data gaps. Many blind spots exist in the housing pathways evidence base.</p>
<p>Optimal policy development requires clear, up-to-date evidence on how we might understand social housing pathways within a changed housing policy and housing assistance context. We also need to consider what advances in administrative and longitudinal data can tell us about how policy innovation might improve social housing pathways.</p>
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<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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<img src="https://counter.theconversation.com/content/120675/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Abigail Powell receives funding from the Australian Housing and Urban Research Institute, the Australian Research Council, the Paul Ramsay Foundation, National Australia Bank, Good Shepherd Microfinance, yourtown and Homelessness NSW.</span></em></p><p class="fine-print"><em><span>Chris Hartley receives funding from Homelessness NSW and Hope Housing.
</span></em></p>The need to manage long waiting lists for social housing, rather than serving the best interests of tenants and prospective tenants, is a major driver of policymakers’ approach.Abigail Powell, Associate Professor at the Centre for Social Impact, UNSW SydneyChris Hartley, Research Fellow (Housing and Homelessness) at the Centre for Social Impact, UNSW SydneyLicensed 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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<strong>
Read more:
<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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Read more:
<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/1160652019-04-29T20:13:00Z2019-04-29T20:13:00ZInformal and illegal housing on the rise as our cities fail to offer affordable places to live<figure><img src="https://images.theconversation.com/files/271344/original/file-20190429-194627-5rg2fj.png?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">This shed has been illegally converted into housing. Two prams and three mattresses are visible.</span> <span class="attribution"><a class="source" href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">Informal Accommodation and Vulnerable Households, author provided courtesy of Fairfield City Council</a></span></figcaption></figure><p>Despite the cooling property market, <a href="https://www.anglicare.asn.au/our-work/research-reports/the-rental-affordability-snapshot/docs/default-source/default-document-library/final---rental-affordability-snapshot9d02da309d6962baacc1ff0000899bca">affordable rental housing remains in critically short supply</a> across Australia. Unable to get a private rental unit or social housing, many low-income renters must resort to informal and insecure accommodation. These range from share homes or rooms, to dwellings that breach planning or building regulations. </p>
<p>Our <a href="https://sydney.edu.au/news-opinion/news/2019/04/29/sydney-s-hidden-housing-problem.html">newly released study</a> sought to shed light on this problem. We found more people are living in shared rooms or dwellings, often in uncrowded and unsuitable conditions. And illegal dwellings are on the rise in Sydney. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/tracking-the-rise-of-room-sharing-and-overcrowding-and-what-it-means-for-housing-in-australia-107265">Tracking the rise of room sharing and overcrowding, and what it means for housing in Australia</a>
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<h2>What is informal housing?</h2>
<p>“Informal housing” usually costs less because it breaches planning, building or tenancy rules, or offers residents few protections under these rules. Examples include unauthorised or illegally constructed dwellings, as well as informal rental agreements, like share housing or room rentals. </p>
<p>Wherever there is a shortage of affordable housing or barriers to access, a market for informal alternatives will emerge. </p>
<p>In Australia’s major cities, low-income earners, recent migrants and international students face particular barriers to getting affordable rental housing. These groups often <a href="https://theconversation.com/a-white-face-can-be-a-big-help-in-a-discriminatory-housing-market-52962">face discrimination</a>, lack rental references or or may fall prey to international agents who offer inadequate accommodation at inflated costs.</p>
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<em>
<strong>
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>In England, illegal “<a href="https://www.express.co.uk/finance/city/897442/Government-to-end-rogue-landlord-beds-in-sheds-culture">beds in sheds</a>” are a well-recognised problem. In parts of the United States such as California, unauthorised dwellings may contribute <a href="https://www.tandfonline.com/doi/abs/10.1080/01944363.2017.1288162">around 5% of new housing supply</a>. </p>
<p>No similar estimates exist in Australia. Our standard housing indicators – new dwelling completions, rent and sales data, as well as five-yearly Census changes in tenure – conceal the informal and illegal arrangements that proliferate in unaffordable markets. </p>
<p><strong>Homelessness growth in Greater Sydney by classification, 2011-2016</strong></p>
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<a href="https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=352&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=352&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=352&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=442&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=442&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271454/original/file-20190429-194600-10xm3r3.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=442&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"><a class="source" href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">Informal Accommodation and Vulnerable Households, data derived from Homelessness Statistics Reference Group (HSRG), ABS 2011-2016</a>, <span class="license">Author provided</span></span>
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<h2>More are resorting to informal arrangements</h2>
<p>Informal arrangements like renting a room in someone’s home or sharing with friends have always been part of Australia’s housing system. </p>
<p>Living in a share house might well be a rite of passage for young people. Sharing well into adulthood and into retirement is a different matter. </p>
<p>Share housing in the Greater Sydney region increased across all age groups above 24 years old between 2011 and 2016, according to the ABS Census. Those aged over 45 now amount to 20% of sharers. In particular, many more older women are sharing because they lack the means to own their own home or rent independently. </p>
<p><strong>Greater Sydney share households (persons) by age group, 2011 and 2016, and % female 2016</strong> </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=370&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=370&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=370&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=464&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=464&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271456/original/file-20190429-194633-1uzm2vt.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=464&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Data derived from TableBuilder, Australian Bureau of Statistics 2011, 2016</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/generation-share-why-more-older-australians-are-living-in-share-houses-107183">Generation Share: why more older Australians are living in share houses</a>
</strong>
</em>
</p>
<hr>
<p>For <a href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">our study</a>, we interviewed council building inspectors and tenant support workers serving inner and southwestern Sydney. We also examined informal housing types emerging within suburban neighbourhoods. </p>
<p>Our study found the types of share accommodation are changing. As well as few legal protections, sharers often live in uncrowded and unsuitable conditions, where conflict between residents becomes more likely. Tenants informally renting rooms or secondary dwellings from onsite owners report uncomfortable feelings of surveillance and insecurity. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/overcrowded-housing-looms-as-a-challenge-for-our-cities-96110">Overcrowded housing looms as a challenge for our cities</a>
</strong>
</em>
</p>
<hr>
<p>Secondary dwellings, or “granny flats”, are often viewed as a flexible or informal housing type. Unlike other states, New South Wales planning law encourages these developments as a form of <a href="https://www.planning.nsw.gov.au/Policy-and-Legislation/Housing/Diverse-and-affordable-housing/Affordable-Rental-Housing-SEPP">affordable rental supply</a>. This offers a sensible relief valve in Sydney’s tight housing market. </p>
<p>But in some areas – such as Fairfield – granny flats have come to dominate new housing development. </p>
<p><strong>Secondary dwelling development and proportion of all dwelling approvals in Fairfield</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=347&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=347&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=347&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=436&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=436&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271458/original/file-20190429-194612-1gij42p.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=436&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">Informal Accommodation and Vulnerable Households</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>This is because “codification” – fast, often privately certified approval for compliant applications – has made granny flats a low-cost option for home owners who want to increase the utility of their properties. Landlords see secondary dwellings as a low-cost, high-yield investment. </p>
<p>But it’s unclear whether these secondary dwellings are being rented out as lower-cost accommodation and, if so, whether they are an appropriate and secure rental housing option in the long term. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/when-granny-flats-go-wrong-perils-for-parents-highlight-need-for-law-reform-103335">When granny flats go wrong – perils for parents highlight need for law reform</a>
</strong>
</em>
</p>
<hr>
<h2>Illegal dwellings on the rise</h2>
<p>One problem our study focused on was the growing incidence of illegal dwellings in Sydney. These include secondary dwellings that are built, or converted from a garage or shed, without planning permission. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271351/original/file-20190429-194620-100mfbp.png?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>
<figcaption>
<span class="caption">An unauthorised structure being used as a secondary dwelling.</span>
<span class="attribution"><a class="source" href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">Informal Accommodation and Vulnerable Households, author provided courtesy of Fairfield City Council</a></span>
</figcaption>
</figure>
<p>These arrangements can be very dangerous. Unsound construction, inadequate or absent insulation, ad hoc electrical wiring, and poorly drained sites expose occupants to serious health and safety risks. The invisible nature of informal housing increases fire risks – with emergency response staff less likely to suspect people are living in a garage or outbuilding. </p>
<p>Illegal dwellings may be more accessible for lower-income earners and others facing rental discrimination. But they are not necessarily low cost. Our study found evidence of illegal granny flats being advertised for over $300 a week. A building inspector commented: “There’s nothing affordable about paying good money for rubbish.” </p>
<p>A lot of resources are needed to identify and remove illegal dwellings. Building inspectors usually become aware of illegal dwellings through complaints from neighbouring residents. Participants in our study described the problem as endemic, as local government lacks the resources for proactive enforcement strategies.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=370&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=370&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=370&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=465&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=465&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271352/original/file-20190429-194616-1rcrekg.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=465&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Internal views (above and below) of unauthorised extensions.</span>
<span class="attribution"><a class="source" href="https://sydney.edu.au/content/dam/corporate/documents/news-opinions/informal-housing-spl-report.pdf">Informal Accommodation and Vulnerable Households, author provided courtesy of Fairfield City Council</a></span>
</figcaption>
</figure>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=369&fit=crop&dpr=1 600w, https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=369&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=369&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=464&fit=crop&dpr=1 754w, https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=464&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/271353/original/file-20190429-194623-1t9ldaq.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=464&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<h2>Informal housing solutions?</h2>
<p>Informal housing is not necessarily exploitative or dangerous. In fact, it can offer solutions beyond prevailing models of private or public housing provision. For instance, self-organised housing cooperatives or “deliberative” developments are promising alternatives to private rental or ownership. But these remain niche options in Australia. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/supersized-cities-residents-band-together-to-push-back-against-speculative-development-pressures-77553">Supersized cities: residents band together to push back against speculative development pressures</a>
</strong>
</em>
</p>
<hr>
<p>The message from our study is that the informal housing sector needs to be recognised and monitored within the wider housing system. Measures to improve security and living conditions for occupants, and to ensure informal dwellings comply with planning rules, are critical. </p>
<p>Structurally, it’s essential to remove the barriers to private rental experienced by lower-income and vulnerable groups. As many others have argued, this means <a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">adequate funding for social and affordable housing</a>, <a href="https://theconversation.com/england-expects-40-of-new-housing-developments-will-be-affordable-why-cant-australia-94581">inclusionary planning</a> to ensure affordable homes are included in new developments, adequate resourcing for tenant advice and crisis services, and <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">further tenancy reform</a>.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/co-housing-works-well-for-older-people-once-they-get-past-the-image-problem-79907">Co-housing works well for older people, once they get past the image problem</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/116065/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicole Gurran receives funding from the University of Sydney's Policy Lab (which funded the research described in this article), and the Australian Housing and Urban Research Institute.</span></em></p><p class="fine-print"><em><span>Madeleine Pill receives funding from the University of Sydney Policy Lab, and the Australian Housing and Urban Research Institute.</span></em></p><p class="fine-print"><em><span>Sophia Maalsen receives funding from the University of Sydney's Policy Lab (which funded the research described in this article), and the Australian Housing and Urban Research Institute. </span></em></p>With Australian city rents too high for low-income earners, increasing numbers are forced to share houses or rooms or to live in options like ‘beds in sheds’ and other illegal dwellings.Nicole Gurran, Professor of Urban and Regional Planning, University of SydneyMadeleine Pill, Senior Lecturer in Public Policy, University of SydneySophia Maalsen, Lecturer in Urbanism, School of Architecture, Design and Planning, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1090072019-02-01T03:41:14Z2019-02-01T03:41:14ZHead start for home owners makes a big difference for housing stress<p>Housing affordability changes over the years for home owners, but this has been largely ignored. The focus has mostly been on entry-level affordability for home buyers. But how does affordability change over the years after people have bought their home? Our <a href="https://www.tandfonline.com/doi/full/10.1080/00049182.2018.1559971">newly published research in Australian Geographer</a> has found owners who entered the housing market 10-15 years ago are less likely to be in housing stress compared with renters or prospective home buyers.</p>
<p>Housing becomes unaffordable when households, especially lower-income households, spend more than 30% of their income on housing costs. Thus the threshold for affordability on our housing affordability index is 30 points. The index shows continuous improvement in ongoing housing affordability for owners over time. </p>
<p>In particular, those who entered the market 10-15 years ago are more likely to find their housing is affordable. Housing stress is not very relevant to them. This is a key benefit of ongoing home ownership. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/housing-affordability-stress-affects-one-in-nine-households-but-which-ones-are-really-struggling-96103">Housing affordability stress affects one in nine households, but which ones are really struggling?</a>
</strong>
</em>
</p>
<hr>
<p>Our study focused on Greater Sydney, where we found entry-level housing remains unaffordable in all regions, but the level of unaffordability varies across regions. Specifically, the deterioration in housing affordability is more obvious in lower-income regions such as Western Sydney. </p>
<p>Ongoing housing affordability for those who have entered the market improves considerably within five to ten years. However, there are again significant differences between regions. Residents in lower-income regions such as Western Sydney take longer to improve their ongoing affordability than residents in high-income regions, such as eastern Sydney. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/mission-nearly-impossible-the-city-of-sydneys-efforts-to-increase-the-affordable-housing-supply-93366">Mission nearly impossible: the City of Sydney's efforts to increase the affordable housing supply</a>
</strong>
</em>
</p>
<hr>
<h2>Benefits of home ownership are clear</h2>
<p>Ongoing housing affordability examines how affordability evolves from the year after entry into the housing market for each cohort of entrants. This is a superior housing affordability measure for most households, particularly current home owners. Importantly, it also demonstrates the benefits and importance of home ownership. </p>
<p>Our ongoing housing affordability indices suggest households in Greater Sydney may experience some level of housing stress in the first five years after buying a house. But this improves from the tenth year after entering and continuously staying in the market. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=286&fit=crop&dpr=1 600w, https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=286&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=286&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=359&fit=crop&dpr=1 754w, https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=359&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/256752/original/file-20190201-127151-is56sl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=359&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Figure 1. Ongoing housing affordability index for Greater Sydney showing changes by year of market entry.</span>
<span class="attribution"><a class="source" href="https://www.tandfonline.com/doi/full/10.1080/00049182.2018.1559971">Bangura & Lee, Australian Geographer (2019)</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>For instance, ongoing housing affordability for the cohorts who entered the market in Greater Sydney in 1992 improved significantly from an index value of 38.3 points (a lower index value represents higher housing affordability) in 1992 to around 19 points in 2002. It improved by another 9.5 points by 2016. This reflects a continuous improvement in housing affordability for ongoing owners.</p>
<p>This improvement is explained by a combination of two factors. First, owner incomes typically rose in the years after they first bought a house. Second, those who got in early also avoided the house price inflation of recent times. This means those who entered the market 20 years ago probably do not find their housing is severely unaffordable. </p>
<p>A comparison between the cohort who entered the market in 1992 and the cohort who entered the market in 2015 shows clear differences. The 1992 cohort has a lower housing affordability index value of 9.5 points (meaning more affordable) in 2016 compared to 60.3 points for the 2015 cohort. Housing is clearly much less affordable for new entrants or home owners than for those who entered markets 23 years earlier. </p>
<p>Renters or prospective home buyers are also more likely in housing stress compared with current homeowners, particularly those who entered the market 10-15 years ago. Entering the housing market earlier made a big difference for housing stress. Thus, the long-term benefits of home ownership should be promoted to prospective house buyers.</p>
<h2>Affordability gains vary across regions</h2>
<p>Ongoing housing affordability for home owners improves considerably within five to ten years of entering the market. However, the ongoing affordability indices show the rate of this improvement varies across different regions of Sydney.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=296&fit=crop&dpr=1 600w, https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=296&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=296&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=372&fit=crop&dpr=1 754w, https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=372&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/256753/original/file-20190201-112389-n9rn5q.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=372&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
</figcaption>
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<figure class="align-center zoomable">
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<a href="https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=345&fit=crop&dpr=1 600w, https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=345&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=345&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=433&fit=crop&dpr=1 754w, https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=433&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/256756/original/file-20190201-42594-w1kkmg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=433&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<a href="https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=341&fit=crop&dpr=1 600w, https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=341&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=341&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=428&fit=crop&dpr=1 754w, https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=428&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/256757/original/file-20190201-108334-1wqrmz4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=428&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<figcaption>
<span class="caption">Figure 2. Ongoing housing affordability indices for Greater Sydney regions, showing changes by year of market entry.</span>
<span class="attribution"><a class="source" href="https://www.tandfonline.com/doi/full/10.1080/00049182.2018.1559971">Bangura & Lee, Australian Geographer (2019), Adapted from the differential geography of housing affordability in Sydney: a disaggregated approach, Australian Geographer</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Figure 2 shows that residents in lower-income regions (such as Western Sydney) take longer to reach the affordability threshold of 30 points than residents in higher-income regions (Eastern Sydney). This is likely to affect the consumption and welfare of households, particularly those from lower-income regions. </p>
<h2>What next?</h2>
<p>The research findings point to two key take-outs:</p>
<ol>
<li><p>Long-term owners’ head start makes a big difference for housing stress. Policymakers should promote home ownership as a means to reduce housing stress among prospective home buyers as housing affordability improves over time for home owners. </p></li>
<li><p>Governments should redesign existing housing policies to enhance affordability for all households, but particularly entry-level housing for low-income households.</p></li>
</ol>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/six-lessons-on-how-to-make-affordable-housing-funding-work-across-australia-91072">Six lessons on how to make affordable housing funding work across Australia</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/109007/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors 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>Affordability is a problem across Sydney for prospective home buyers. But if they are able to become owners, new research shows affordability becomes much less of a problem over five to ten years.Mustapha Bangura, Part-time lecturer and PhD Candidate in Property Economics, Western Sydney UniversityChyi Lin Lee, Associate Professor of Property, Western Sydney UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1071832018-12-02T18:47:24Z2018-12-02T18:47:24ZGeneration Share: why more older Australians are living in share houses<figure><img src="https://images.theconversation.com/files/247466/original/file-20181127-76758-h54on4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Tight finances are the main reason more older Australians, especially women, are living in share houses.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/three-happy-adult-female-friends-having-270596732?src=RMuqJit23j21AjrA4HIdrA-1-89">belushi/Shutterstock</a></span></figcaption></figure><p>An increasing number of older Australians are living in share housing. A relatively new group to emerge on the share-housing scene, they are choosing to share for financial reasons, but finding unexpected social benefits. </p>
<p>Share housing has traditionally been associated with student housing and media depictions of the share house as dysfunctional, chaotic, “<a href="https://en.wikipedia.org/wiki/He_Died_with_a_Felafel_in_His_Hand">He Died with a Falafel in His Hand</a>” scenarios. But a <a href="https://www.seniorshousingonline.com.au/news/360/Older-renters-on-the-rise-new-report-shows">growing number of older people are sharing housing</a>.</p>
<p>This trend is part of the growth in share housing across an increasingly broad demographic as professionals aged in their 30s, 40s and onwards continue to share house or return to share housing into later life. Generation Rent is fast becoming “Generation Share”.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/moving-on-from-home-ownership-for-generation-rent-71628">Moving on from home ownership for 'Generation Rent'</a>
</strong>
</em>
</p>
<hr>
<p>The growing trend of share households is <a href="https://www.parliament.nsw.gov.au/la/papers/Pages/tabled-paper-details.aspx?pk=68407">attributed to a combination of shifting social norms and a decline in affordable rental properties</a>. This is particularly acute in our capital cities but is also evident in regional centres. </p>
<p>An emerging group of tenants – professionals, couples, young families and students – who cannot afford to buy or rent an entire property of their own are increasingly turning to shared occupancy as a way to afford housing. <a href="https://www.parliament.nsw.gov.au/la/papers/Pages/tabled-paper-details.aspx?pk=68407">Home owners are also noted as a group for whom shared occupancy has benefits</a> by generating extra income for mortgage repayments. </p>
<h2>Tight budgets affect all ages</h2>
<p><a href="https://www.tandfonline.com/doi/full/10.1080/14649365.2018.1466355?scroll=top&needAccess=true">My research</a> on share housing across all age groups shows it’s mainly driven by financial constraints. In older age, the experience of this is gendered. Although older men are sharing, women in particular are more vulnerable to significant financial constraints in old age.</p>
<p>Women are the <a href="https://www.baptistcareaustralia.org.au/news/article/the-most-rapidly-growing-group-of-homeless-australians-its-not-who-you-expect/">fastest-growing group at risk of homelessness in Australia</a>. Many have limited superannuation to draw upon due to time out of the workforce to raise children or manage the home. This means the ramifications of the gender wage gap are particularly visible in older life – to quote one participant, “a man is not a superannuation”. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">Spirals and circles, snakes and ladders. Why women's super is complex</a>
</strong>
</em>
</p>
<hr>
<p>A common scenario is people falling out of home ownership after divorce or a relationship breakdown. Without the family home and with limited material assets, share housing is one of a diminishing set of options for living affordably and securely. </p>
<h2>Share housing has its challenges</h2>
<p>Moving into share housing in later life can be an adjustment. Many older people are in share housing for the first time in their life, having previously owned their own home. </p>
<p>There are obvious social challenges inherent in this situation. These include learning to negotiate domestic spaces in new ways. And certainly many are vulnerable to being exploited by unscrupulous flatmates, head tenants, or landlords.</p>
<p>Similar to share-housing experiences among younger groups, older participants mentioned occasional household conflicts and were aware of the need for personal space. </p>
<h2>But there are also social benefits</h2>
<p>However, some also reflect positively on the social value of share housing. This has been an unexpected benefit for many of them. At <a href="https://www.agedcareguide.com.au/talking-aged-care/exploring-the-link-between-loneliness-social-isolation-and-mental-health-in-seniors">an age when isolation and loneliness increase</a>, this is particularly important. </p>
<p>Older residents value the social aspects and the new friendships that sometimes develop in share houses. Flow-on effects of this include an increase in their sense of safety and security, knowing that they are not alone should anything untoward happen. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/co-housing-works-well-for-older-people-once-they-get-past-the-image-problem-79907">Co-housing works well for older people, once they get past the image problem</a>
</strong>
</em>
</p>
<hr>
<h2>Long-term policy challenges loom</h2>
<p>Although share housing in older age has social benefits, its rise should prompt us to reflect critically on Australia’s housing market as well as rethinking retirement policy. Share housing is directly correlated to declining housing affordability. </p>
<p>These trends highlight <a href="https://theconversation.com/australia-needs-to-triple-its-social-housing-by-2036-this-is-the-best-way-to-do-it-105960">systematic disinvestment in public and social housing</a> for the past 30 years as well as a market that has encouraged housing as a site of investment. The result is a system that has produced housing as a site of profit rather than housing as a site of home. </p>
<p>For older people, the situation is particularly complex. Australia’s retirement policies promote home ownership as the pathway to a financially secure old age. That leaves the <a href="https://theconversation.com/why-secure-and-affordable-housing-is-an-increasing-worry-for-age-pensioners-69350">growing number of older Australians who don’t own their own home</a> to experience increased financial stress. </p>
<p>The Australian Dream of the owner-occupied home is quickly becoming that – <a href="https://theconversation.com/ideas-of-home-and-ownership-in-australia-might-explain-the-neglect-of-renters-rights-104849">a dream rather than reality for many Australians</a>. The cracks are starting to show. As people fall out of home ownership and the younger generations doubt they’ll ever own a home – they’re not called Generation Rent for nothing – Generation Share will present significant challenges for policy. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/home-ownership-foundations-are-being-shaken-and-the-impacts-will-be-felt-far-and-wide-91664">Home ownership foundations are being shaken, and the impacts will be felt far and wide</a>
</strong>
</em>
</p>
<hr>
<img src="https://counter.theconversation.com/content/107183/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sophia Maalsen received funding from the IB Fell Trust for this research. </span></em></p>While share houses are more a matter of financial necessity than choice, many older Australians are discovering it has unexpected social benefits for them.Sophia Maalsen, I.B. Fell Postdoctoral Researcher, School of Architecture, Design and Planning, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1034022018-09-24T13:35:58Z2018-09-24T13:35:58ZEgypt is building a new capital city from scratch – here’s how to avoid inequality and segregation<p>Egypt is the latest country to <a href="https://www.bbc.co.uk/news/business-31874886">build a new capital city</a> from scratch, with ambitions to move parliament away from Cairo as early as summer 2019. With <a href="http://www.capmas.gov.eg/HomePage.aspx">nearly 24m people</a> living in Greater Metropolitan Cairo, the current Egyptian capital suffers from severe congestion and overcrowding – problems which <a href="https://www.youtube.com/watch?v=IdOokw729kc">the government claims</a> the new capital will resolve. </p>
<p>Egypt joins more than 30 countries or regional states, which have relocated their seats of power to new cities designed from scratch: Brazil, Australia, Kazakhstan and Nigeria are among <a href="https://www.routledge.com/Capital-Cities-Varieties-and-Patterns-of-Development-and-Relocation/Rossman/p/book/9781138837775">the most famous</a> examples. <a href="https://www.independent.co.uk/news/long_reads/egypt-capital-city-cairo-architecture-the-new-administrative-capital-a8521981.html">Built on a site</a> located 45 kilometres east of Greater Cairo, the city will feature a new presidential palace, a new parliament, a central bank and business district, an airport and a massive theme park, alongside housing for 6.5m people. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=379&fit=crop&dpr=1 600w, https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=379&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=379&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=476&fit=crop&dpr=1 754w, https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=476&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/237762/original/file-20180924-85770-1mwepex.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=476&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Egypt’s new capital, marked in yellow.</span>
<span class="attribution"><span class="source">Google Earth.</span></span>
</figcaption>
</figure>
<p>But while <a href="https://www.taylorfrancis.com/books/e/9781134463374">new political capitals</a> can be symbols of national identity and tools for development, the <a href="https://www.citylab.com/equity/2017/04/why-capital-city-relocation-might-not-be-such-a-bad-idea-after-all/522321/">successes</a> and <a href="https://www.ft.com/content/52a967d0-409d-11e2-8f90-00144feabdc0">failures</a> of these mega projects have always been topics of much debate. Perhaps the most famous example is Brasília: <a href="https://www.theguardian.com/theguardian/2010/jun/10/archive-brasilia-model-form">designed to embody</a> the progressive, egalitarian ideals of 1950s Brazil, today the city is marred by urban segregation and inequality. </p>
<h2>Brasília: a split city</h2>
<p>The metropolitan area of Brasília has two distinctive areas: the <a href="https://www.google.com/maps/@-15.7858453,-47.8917598,13934m/data=!3m1!1e3">Pilot Plan</a> – the well known urban design by Brazilian architect <a href="https://www.britannica.com/biography/Lucio-Costa">Lúcio Costa</a> – and the satellite cities, which have replaced the many informal settlements built by the construction workers who worked on the Pilot Plan. </p>
<p>Less than 10% of Brasília’s population lives in the Pilot Plan. The area was carefully planned to host the federal government, its civil servants and the intellectual elites. Costa dreamed of creating a just city, where the different socioeconomic groups of Brazilian society would be represented and share equal access to the city. </p>
<p>The plan failed to live up to <a href="https://www.youtube.com/watch?v=3Ony7axA-CE">Costa’s vision</a>. Poorer families were forced to move out from the Pilot Plan as early as the late 1950s. The government set forth <a href="http://www.cronologiadourbanismo.ufba.br/apresentacao.php?idVerbete=1625">relocation plans</a>, using <a href="https://www.youtube.com/watch?v=SGh84AN6Fsc">environmental, health</a> and even construction issues as technical justifications to locate new satellite cities further away from the Pilot Plan, while showing little regard for those affected. </p>
<p>For example, residents of the Amaury settlement made their homes on the site for the planned artificial <a href="https://www.youtube.com/watch?v=Ud1UffnxHHA">Lake Paranoá</a> – in the knowledge that they would one day need to move. But rather than being relocated by the government in a fair and organised way, residents were forced to flee their homes with only a few days warning, as the lake began to fill. To this day, kitchen utensils and other household objects <a href="https://www.youtube.com/watch?v=k0n3EhmbRU4">can be observed</a> among the ruins under the lake – evidence of the rushed escape of residents. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=357&fit=crop&dpr=1 600w, https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=357&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=357&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=449&fit=crop&dpr=1 754w, https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=449&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/237185/original/file-20180919-158240-1pmc1f8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=449&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Amaury favela, with the Congress and the Alvorada Presidential Palace in the background.</span>
<span class="attribution"><span class="source">Paulo Manhaes</span></span>
</figcaption>
</figure>
<p>Relocated to satellite cities such as <a href="https://www.google.com/maps/place/Ceil%C3%A2ndia,+Brasilia+-+Federal+District,+Brazil/@-15.8197374,-48.1136546,9561m/data=!3m1!1e3!4m5!3m4!1s0x935bceef0979b2ab:0xcca29259f34367e5!8m2!3d-15.821435!4d-48.114201">Ceilândia</a>, more than an <a href="https://www.google.com/maps/dir/Esta%C3%A7%C3%A3o+Central,+Setor+de+Divers%C3%B5es+Norte+-+Bras%C3%ADlia,+DF,+70297-400,+Brazil/Ceil%C3%A2ndia,+Brasilia+-+Federal+District,+72225-110,+Brazil/@-15.8079737,-48.0688819,12z/data=!3m1!4b1!4m18!4m17!1m5!1m1!1s0x935a3ae239e259a5:0xb625a2ee5bc38172!2m2!1d-47.8834736!2d-15.7936771!1m5!1m1!1s0x935bceef3875ca85:0xe9c63e8dded9b564!2m2!1d-48.114204!2d-15.8215045!2m3!6e0!7e2!8j1537862400!3e3">an hour and a half</a> from the Pilot Plan by public transport, low-income families <a href="https://www.sciencedirect.com/science/article/pii/0264275196000169">had a harder time</a> finding work and taking part in civic life. A <a href="http://extrapauta.com.br/a-expansao-de-brasilia-para-habitacao-segundo-lucio-costa-brasilia-revisitada/">1987 proposal by Costa</a> to review the Pilot Plan and include neighbourhoods of affordable housing was never fully delivered.</p>
<p>The lack of access to basic public infrastructure and the spatial segregation – imposed first by the relocation programmes, and later driven by the private housing and job markets – were and still are the main drivers of <a href="https://politica.estadao.com.br/noticias/geral,brasilia-numeros-vs-realidade,70001757168">inequality in the city</a>. </p>
<h2>History repeated</h2>
<p>Egypt’s as yet unnamed new capital is intended to have a range of different land uses. Phase one is focusing on the government district and residential areas, with a large supply of public facilities and green and transport infrastructure. Although the plans <a href="http://www.sis.gov.eg/Story/132575?lang=ar">include affordable housing</a>, <a href="https://www.youm7.com/story/2018/6/21/%D8%B1%D8%B3%D9%85%D9%8A%D8%A7-%D8%B7%D8%B1%D8%AD-%D8%B4%D9%82%D9%82-%D8%A7%D9%84%D8%B9%D8%A7%D8%B5%D9%85%D8%A9-%D8%A7%D9%84%D8%A5%D8%AF%D8%A7%D8%B1%D9%8A%D8%A9-%D9%84%D9%84%D8%AD%D8%AC%D8%B2-%D8%A7%D9%84%D8%A3%D8%B3%D8%A8%D9%88%D8%B9-%D8%A7%D9%84%D9%85%D9%82%D8%A8%D9%84-%D8%A7%D9%84%D8%A5%D8%B3%D9%83%D8%A7%D9%86-%D9%83%D8%B1%D8%A7%D8%B3%D8%A7%D8%AA/3840932">average prices</a> are beyond the reach of <a href="https://www.theguardian.com/cities/2018/may/08/cairo-why-egypt-build-new-capital-city-desert">an average public worker</a>. </p>
<p>The attractive character of the developments in the new capital will make housing developments near the new city increasingly unaffordable. The government <a href="https://www.youtube.com/watch?v=-peT44_PERc">has a policy in force</a> to control the price of land every six months. So far, the price of land has only increased. This approach is not an effective way of ensuring that housing in the new capital remains affordable for Egypt’s lower income citizens. There’s a real risk that the new city will replicate <a href="http://www.eulc.edu.eg/eulc_v5/Libraries/Thesis/BrowseThesisPages.aspx?fn=ThesisPicBody&BibID=12297152&TotalNoOfRecord=109&PageNo=1&PageDirection=First">the historical trend of spatial segregation</a>, which can still be observed in Cairo today. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=607&fit=crop&dpr=1 600w, https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=607&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=607&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=763&fit=crop&dpr=1 754w, https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=763&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/237180/original/file-20180919-158213-mw38k0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=763&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Historical spatial segregation in Cairo.</span>
<span class="attribution"><span class="source">Aya Badawy, Hassan Abdel-Salam and Hany Ayad.</span></span>
</figcaption>
</figure>
<p>As a result, low and middle-income families will search for housing on the peripheries of the new capital, leading to the development of poorly planned, poorly connected settlements, which will only reinforce urban inequality.</p>
<h2>A different design</h2>
<p>The excitement of a brand new capital and its image as a clean, organised, smart and sustainable city must not overshadow the need for a balanced, diverse and fair community. </p>
<p>The planners and authorities involved in the new Egyptian capital should look to Brasília: there, it is evident that policies to provide affordable housing and access to jobs and opportunities within the new capital could have avoided the relocation of the poorer in the peripheral satellite cities. </p>
<p>If it’s to succeed, Egypt’s new capital must stick to the principles of an inclusive city, where all citizens can come together and share the city and its opportunities. This was the most important design principle for Costa – but without meaningful policies to support low income residents, it could not endure in the Brasília he so beautifully created.</p><img src="https://counter.theconversation.com/content/103402/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors 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>Brasília was designed to be a just and inclusive city, but it still failed. Can Egypt’s new capital avoid the same mistakes?Nuno Pinto, Lecturer in Urban Planning and Urban Design, University of ManchesterAya Badawy, PhD Candidate, University of ManchesterLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1003832018-07-29T20:17:36Z2018-07-29T20:17:36ZRents, not prices, are best to assess housing supply and demand<p>If property prices are rising, it is commonly <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Former_Committees/hsaf/report/c05">assumed we must be facing a shortage of supply relative to demand</a>. So if we’re ever going to reduce housing affordability problems, we’re simply going to have to <a href="https://www.theguardian.com/australia-news/2016/oct/27/economics-101-house-prices-are-surging-because-of-low-supply?CMP=share_btn_tw">build our way out of it</a>. After all, as anyone who’s sat in an introductory economics class would tell you, basic economics is sufficient to at least suggest that if prices are rising in the long term, then supply must be lagging behind demand. </p>
<p>It’s true the housing market is largely subject to the forces of supply and demand. The deficiency of this argument lies, not so much in any perceived cracks in the supply-demand framework taught in Economics 101, but in the fact that the appropriate “price” indicator is not property prices. It’s rent.</p>
<h2>What’s the ‘price’ of housing?</h2>
<p>The problem with relying on rising property prices as a “price” signal of a supply shortage is that the dwelling an owner-occupier buys is both a consumption and an investment good. It offers a place to live as well as an asset in which the owner invests a substantial part of their wealth. Hence, property prices are at best a murky indicator of the balance of supply and demand for housing as a home to live in <em>and</em> an asset to own. </p>
<p>It is well established in the <a href="https://www.jstor.org/stable/1883123">housing economics literature</a> that the “price” signal for the adequacy of supply relative to demand for housing services is rent. Rent reflects the cost of consuming housing or, to put it another way, the cost of living in a home. So if housing supply is lagging behind demand for housing as a place to live in, we should expect to see rents rise. </p>
<h2>Are rents keeping pace with property prices?</h2>
<p>Property prices have clearly surged over the long term in Australia, as the chart below shows. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/229557/original/file-20180727-106496-o78kv5.png?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>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p>The Residential Property Price Index (<a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0">RPPI</a>), adjusted for inflation and averaged across all capital cities, climbed by nearly 30% from 2008-18. Property prices in Sydney and Melbourne, where the real RPPI surged by 54% and 43% respectively, largely drove this average increase.</p>
<p>But housing economics principles tell us this can only be attributed to a supply shortage if rents have also soared. </p>
<p>It turns out real rents have remained relatively flat in most capital cities over the last decade. The chart below shows the real weekly rent of three-bedroom houses across all capital cities over the past decade. The weighted average has shifted upwards by a mere 10%, from $389 to $429. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/229537/original/file-20180727-106508-55w8qi.png?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>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p>For two-bedroom units, the average real weekly rent has also shifted slightly from $393 to $446. That’s a mild 13% increase over a decade. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/229538/original/file-20180727-106499-19q6lgj.png?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>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p>The real rent increases have been relatively minor compared to the nearly 30% surge in real RPPI across all capital cities. There are again some differences between cities, but only Sydney had a noticeable increase in real rents. This still lagged behind the spike in real RPPI in the city. </p>
<h2>Dealing with the crux of the affordability crisis</h2>
<p>Overall, rent increases are clearly not keeping pace with soaring property prices in all major capital cities in Australia. So <a href="http://sjm.ministers.treasury.gov.au/speech/005-2017/">claims</a> that a housing shortage is the principal cause of a lack of affordable housing are unfounded. Supply-side solutions, while important, will need to be <a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993">targeted directly at low-income groups</a> who find it difficult to compete in private rental markets to meet housing needs.</p>
<p>On the other hand, successive governments have offered preferential tax treatments of housing assets. These have encouraged a significant build-up of wealth in housing assets. </p>
<p>Some of these favourable tax advantages have undoubtedly been capitalised into rising property prices. That has made it harder and harder for renters to break into the home ownership market.</p>
<p>These are structural problems embedded within our tax policy settings. Hence, their impacts on house prices will not magically disappear any time soon unless policymakers are willing to undertake <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0023/23828/AHURI_Final_Report_301_pathways_to_housing_tax_reform.pdf">meaningful tax reform</a> that shifts the emphasis away from treating housing as a commodity back to affordable housing as a fundamental right of all Australians.</p><img src="https://counter.theconversation.com/content/100383/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rachel Ong ViforJ 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>Property prices have soared in the past decade, but much more modest increases in rent, with the exception of Sydney, suggest less of an imbalance of supply and demand for housing as a place to live.Rachel Ong ViforJ, Professor of Economics, School of Economics, Finance and Property, Curtin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/972902018-06-20T10:27:22Z2018-06-20T10:27:22ZWhy turning homelessness into a crime is cruel and costly<p>Increasingly, local laws punish Americans who are homeless.</p>
<p>By severely restricting or even barring the ability to engage in necessary, life-sustaining activities in public, like sitting, standing, sleeping or asking for help, even when there’s no reasonable alternative, these laws are essentially persecuting homeless men, women and children.</p>
<p>As <a href="https://scholar.google.com/citations?user=qlW-Ku8AAAAJ&hl=en&oi=ao">law professors</a> who <a href="http://ssrn.com/author=1572922">study how laws can make homelessness better or worse</a>, we encourage cities, suburbs and towns to avoid punishing people who live in public and have nowhere else to go. One big reason: These “<a href="https://definitions.uslegal.com/v/vagrancy/">anti-vagrancy laws</a>” are counterproductive because they make it harder to escape homelessness. </p>
<h2>Many paths to not having a home</h2>
<p>Why do at least <a href="https://theconversation.com/why-there-are-so-many-unsheltered-homeless-people-on-the-west-coast-96767">half a million Americans experience homelessness</a> at any time? </p>
<p>Researchers find that most people who become homeless have nowhere to live after <a href="https://www.nlchp.org/documents/Homeless_Stats_Fact_Sheet">being evicted</a>, losing their jobs or <a href="http://www.nationalhomeless.org/factsheets/domestic.html">fleeing an abusive partner</a>. </p>
<p>Many emergency homeless shelters <a href="http://www.latimes.com/local/california/la-me-los-angeles-shelter-shortage-20170929-htmlstory.html">are perpetually full</a>. Even those with beds to spare may enforce rules that exclude <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2776421">families, LGBTQ youth</a> and <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2776427">people with pets</a>.</p>
<p>And when homeless people can stay in shelters, often they may only spend the night there. That means they have to <a href="https://law.yale.edu/system/files/area/center/schell/criminalization_of_homelessness_report_for_web_full_report.pdf">go somewhere else during the daytime</a>.</p>
<p><iframe id="OrgkW" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/OrgkW/2/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>More laws</h2>
<p>As the number of people facing homelessness increases, local residents are demanding that their elected officials do something about <a href="http://www.nationalhomeless.org/publications/crimreport/meanestcities.html">the homeless people they encounter in their daily lives</a>. The leaders of cities, towns and suburbs are often responsive.</p>
<p>But more often than not, municipalities don’t address the underlying problems that cause homelessness by, say, providing sufficient permanent housing, affordable housing or shelters with <a href="https://www.springsrescuemission.org/low-barrier-shelter-what-does-mean/">minimal barriers to entry</a>. Instead, <a href="https://law.seattleu.edu/centers-and-institutes/korematsu-center/initiatives/homeless-rights-advocacy-project/additional-resources">criminalizing homelessness</a> is growing more popular.</p>
<p>Over the last decade, city-wide bans on camping in public have increased by 69 percent while city-wide panhandling bans rose by 43 percent, according <a href="https://www.nlchp.org/documents/Housing-Not-Handcuffs">to the National Law Center on Homelessness and Poverty</a>.</p>
<p><iframe id="OfzuT" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/OfzuT/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>Advocates such as the American Civil Liberties Union frequently <a href="http://www.sacbee.com/news/local/homeless/article208595844.html">challenge these laws in court</a>. Judges often strike down such laws on the grounds that they violate constitutionally protected rights, such as <a href="https://www.wsj.com/articles/as-panhandling-laws-are-overturned-cities-change-policies-1502204399">the freedom of speech</a> or <a href="https://www.nlchp.org/documents/Housing-Not-Handcuffs-Litigation-Manual">due process</a>.</p>
<p>Still, more and more communities keep trying to outlaw homelessness.</p>
<h2>Criminalizing homelessness is ineffective</h2>
<p>Not only do <a href="http://moritzlaw.osu.edu/students/groups/oslj/files/2015/10/Vol.-76-57-66-Mead-Essay.pdf">we and other legal experts</a> find these laws <a href="https://crosscut.com/2018/05/seattle-u-prof-city-cant-solve-homelessness-without-courage">to be unconstitutional</a>, we see ample evidence that they waste tax dollars.</p>
<p>Cities are aggressively deploying law enforcement to target people simply for the crime of existing while having nowhere to live. In 2016 alone, Los Angeles police arrested 14,000 people experiencing homelessness for everyday activities such as <a href="http://www.latimes.com/local/politics/la-me-homeless-arrests-20180204-story.html">sitting on sidewalks</a>.</p>
<p><a href="https://sf.curbed.com/2016/6/3/11852832/homeless-san-francisco">San Francisco is spending some US$20 million</a> per year to enforce laws against loitering, panhandling and other common conduct against people experiencing homelessness. </p>
<p>Jails and prisons make extremely <a href="https://thecrimereport.org/2018/06/18/jail-is-no-place-for-the-homeless-say-police-chiefs/#">expensive and ineffective homeless shelters</a>. <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2602530&rec=1&srcabs=2602533&alg=1&pos=2">Non-punitive alternatives</a>, such as permanent supportive housing and mental health or substance abuse treatment, cost less and work better, according to research one of us is doing at the <a href="https://law.seattleu.edu/centers-and-institutes/korematsu-center/initiatives/homeless-rights-advocacy-project">Homeless Rights Advocacy Project</a> at Seattle University Law School and <a href="http://www.csh.org/supportive-housing-facts/evidence/">many other sources</a>.</p>
<p>But the greatest cost of these laws is borne by already vulnerable people who are ticketed, arrested and jailed because they are experiencing homelessness.</p>
<p>Fines and court fees quickly add up to hundreds or thousands of dollars. A Sacramento man, for example, found himself facing <a href="https://www.newsreview.com/sacramento/sacramentos-100-000-homeless-man/content?oid=23694183">$100,000 in fines for convictions for panhandling and sleeping outside</a>. These costs are impossible to pay, since the “crimes” were committed by dint of being unable to afford keeping a roof over his head in the first place.</p>
<p>And since having a <a href="https://www.voiceofsandiego.org/topics/opinion/the-city-is-not-keeping-my-stuff-after-an-arrest/">criminal record</a> makes getting jobs and <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/j.1747-4469.2008.00092.x">housing much harder</a>, these laws are perpetuating homelessness.</p><img src="https://counter.theconversation.com/content/97290/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Joseph W. Mead serves on the board of directors and as a cooperating attorney for the American Civil Liberties Union of Ohio. </span></em></p><p class="fine-print"><em><span>Sara Rankin does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>People may not have a criminal record before they become homeless, but they likely will afterward due to laws intended to keep people with nowhere to go out of sight.Joseph W. Mead, Assistant Professor, Cleveland State UniversitySara Rankin, Professor of Lawyering Skills, Seattle UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/961102018-06-19T20:15:25Z2018-06-19T20:15:25ZOvercrowded housing looms as a challenge for our cities<figure><img src="https://images.theconversation.com/files/221913/original/file-20180606-137312-coatpi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The return of the historic problem of overcrowded dwellings points to a need in Australia for better understanding of the causes and regulatory responses.</span> <span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:Jacob_Riis,_Lodgers_in_a_Crowded_Bayard_Street_Tenement.jpg">Jacob Riis (1889)</a></span></figcaption></figure><p>Overcrowding is an inevitable and often overlooked result of the <a href="https://theconversation.com/affordable-housing-shortfall-leaves-1-3m-households-in-need-and-rising-study-80965">affordable housing shortage</a> in our cities. </p>
<p>When a dwelling requires four or more extra bedrooms to reasonably accommodate occupants, the standard commonly used in Australia defines that as severe overcrowding. In 2011, 41,390 Australians lived in severely overcrowded dwellings, an <a href="http://www.nwhn.net.au/admin/file/content9/c14/NAHA-Homelessness%202011-12.pdf">increase of one-third from 2006</a>. This increase occurred mostly in cities where house prices had risen sharply.</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>Our recent <a href="http://apo.org.au/node/178836">research</a>, to be published soon, examined where overcrowded housing is located in our capital cities. We found:</p>
<ul>
<li>Sydney and Melbourne are most affected by concentrated overcrowding</li>
<li>levels of overcrowding are highest in middle-city areas (except in Adelaide)</li>
<li>overcrowding overlaps strongly with socioeconomic disadvantage.</li>
</ul>
<h2>What exactly do we mean by overcrowding?</h2>
<p>Pressure in the affordable housing sector has led to increases in overcrowding. Media reports describe situations of “<a href="https://www.sbs.com.au/news/ten-people-in-a-two-bed-unit-international-students-living-in-squalor">ten people in a two-bed unit</a>”, “<a href="https://www.smh.com.au/national/nsw/illegal-accommodation-city-of-sydney-cracks-down-on-black-market-syndicates-20150615-gho8ie.html">58 beds crammed into 19 dirty, makeshift rooms</a>” and “<a href="https://www.sbs.com.au/yourlanguage/korean/en/audiotrack/city-sydney-cracks-down-illegal-accommodation">ten people shoehorned into one bedroom, tenants sleeping in bathrooms, and in one case, a pantry</a>”.</p>
<p>Living in severely crowded dwellings has been described as the <a href="http://apo.org.au/node/56126">most common form of homelessness</a>. </p>
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Read more:
<a href="https://theconversation.com/homelessness-australias-shameful-story-of-policy-complacency-and-failure-continues-95376">Homelessness: Australia's shameful story of policy complacency and failure continues</a>
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<p>Security and safety can be an issue when residents do not have privacy and control of their own space. But people sacrifice space and safety to secure affordable accommodation. </p>
<p>An example of the dangers was a fatal fire in an apartment illegally partitioned to create <a href="https://www.smh.com.au/national/nsw/fire-flat-building-changes-15-minutes-to-flashover-20120920-269lb.html">a fourth bedroom</a>.</p>
<p>Commonly used standards of overcrowding range from simple indicators such as persons per bedroom (e.g. <a href="http://archive.stats.govt.nz/tools_and_services/nzdotstat/tables-by-subject/housing-quality-tables/crowding-occupancy-rate.aspx">American Crowding Index</a>) to more sophisticated indicators that consider family size and composition (age, gender and marital status). </p>
<p>One such measure, the Canadian National Occupancy Standard (<a href="http://meteor.aihw.gov.au/content/index.phtml/itemId/386254">CNOS</a>), is officially recognised in Australia. It assesses a household’s bedroom requirements using the following criteria:</p>
<ul>
<li>no more than two people should share a bedroom</li>
<li>children of different sexes under five years of age may reasonably share a room</li>
<li>children of different sexes should not share a bedroom when aged five or older</li>
<li>children under 18 and of the same sex may reasonably share a bedroom</li>
<li>parents, couples and household members aged 18 or older should have a separate bedroom.</li>
</ul>
<p>Under this standard, households that need at least one extra bedroom are considered overcrowded. A shortfall of four or more bedrooms is severe overcrowding, with greater risks for health and safety.</p>
<h2>One standard doesn’t fit all situations</h2>
<p>Measuring overcrowding is not straightforward. The age and sex separation thresholds involve assumptions about the age of puberty and adulthood. </p>
<p>CNOS is the preferred measure of the Australian Bureau of Statistics, Statistics New Zealand and the Australian Institute of Health and Welfare (AIHW). This is because it takes the age and sex of occupants into account and matches our values and expectations of how space is used. </p>
<p>In Australia, it is usually acceptable for children of the same sex to share a bedroom before puberty. But we already know CNOS <a href="https://www.pc.gov.au/research/supporting/national-agreements/affordable-housing/affordable-housing-2011-12.pdf">does not account for differing cultural expectations</a> of the numbers of bathrooms and toilets, and the size of kitchens, bedrooms and living spaces. CNOS embeds assumptions that do not hold across ethnically diverse groups in Australia.</p>
<p>For example, a study of migrant suburbs in Sydney and Melbourne found “<a href="http://journals.sagepub.com/doi/abs/10.1177/0042098017700791">it is not uncommon to have families with two adults and five children sharing a two-bedroom property</a>”. This is due to large family size and different cultural norms, including intergenerational occupancy of housing. Few properties are designed for this. </p>
<p>Traditional Pacific houses use living spaces rather than separate bedrooms for sleeping. A bedroom with more than two people is compatible with the attitudes of some Pacific and Mäori peoples to <a href="http://archive.stats.govt.nz/methods/research-papers/working-papers-original/finding-crowding-index-11-04.aspx">having a sense of adequate space</a>.</p>
<p>Similarly, using the Canadian standard, <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0013/2029/AHURI_Final_Report_No194_Australian_Indigenous_house_crowding.pdf">Indigenous Australians are more than five times as likely to live in overcrowded housing as non-Indigenous Australians</a>. This is alarmingly high and likely driven by high rates of socioeconomic disadvantage. We need to disentangle the extent to which values around space and its use versus socio-economic drivers of overcrowding underlie this statistic.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/we-need-to-stop-innovating-in-indigenous-housing-and-get-on-with-closing-the-gap-96266">We need to stop innovating in Indigenous housing and get on with Closing the Gap</a>
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<h2>Do we need better measures?</h2>
<p>So should we develop Australian-specific culturally sensitive standards? We think that depends on what we want to know. </p>
<p><a href="http://jech.bmj.com/content/early/2016/05/06/jech-2015-206716#ref-11">Physiological stress and disease risk as a result of crowding occur for different ethnic groups</a> regardless of whether they perceive themselves as crowded. Culturally specific standards may not be necessary when broadly examining the relationships between crowding and transmission of infections such as rheumatic fever, colds, asthma, influenza and <a href="https://www.msd.govt.nz/documents/about-msd-and-our-work/publications-resources/archive/2001-definitionsofcrowding.pdf">meningococcal disease</a>. Living in close quarters is relevant regardless of cultural norms of housing or nuances of measurement of crowding. Standard indices, while not perfect, capture this.</p>
<p>However, expectations about shared space might influence impacts on mental health. Social relations and family bonds are key social determinants of mental health. In particular, <a href="https://www.sciencedirect.com/science/article/pii/S1353829216300521#bib58">shared culture has been identified as a positive resource in improving Indigenous health</a>. Current crowding metrics <a href="https://uofmpress.ca/books/detail/indigenous-homelessness">ignore non-bedroom-related uses of housing</a>. </p>
<p>Crowding indices that <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0024/2895/AHURI_Positioning_Paper_No141_Modelling-crowding-in-Aboriginal-Australia.pdf">capture the use of space – for example, incorporating subjective feelings that too many people are around</a> – could be a step forward. Given our climate of wide temperature ranges and the high cost of utilities, such indices might also consider “functional overcrowding” – people sharing small spaces or beds due to concerns about heating/cooling and security.</p>
<p>Research on wellbeing would benefit from integrating a better understanding of the variety of needs of cultural groups and tailoring measures to our climatic conditions. However, such measures would be more subjective than current standard measures, more difficult to collect at a population level and less comparable with international standards. </p>
<h2>What can we do about harmful overcrowding?</h2>
<p>Cultural preferences mean low levels of overcrowding may not always be problematic. But overcrowding is a problem when generated by socio-economic disadvantage and when it compromises people’s safety and security. This is likely in cities where housing costs are high. </p>
<p>Broader measures are needed to improve the supply of affordable housing. This includes dedicated programs such as the National Rental Affordability Scheme (<a href="https://www.dss.gov.au/our-responsibilities/housing-support/programs-services/national-rental-affordability-scheme/national-rental-affordability-scheme-frequently-asked-questions-1">NRAS</a>) and extra funding for social housing. Enforceable laws that go beyond the Public Health and Wellbeing Act in Victoria and NSW Fair Trading strata reforms are also needed to monitor overcrowding and avoid the negative impacts of severe overcrowding.</p><img src="https://counter.theconversation.com/content/96110/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Shanaka Herath has received funding from AHURI, City of Sydney Council and the Austrian Research Promotion Agency.</span></em></p><p class="fine-print"><em><span>Rebecca Bentley receives funding from the Australian Research Council and National Health and Medical Research Council. </span></em></p>The standards we use today were designed to help avoid the overcrowded housing that blighted cities in the past. But severe overcrowding is again on the rise, so what needs to be done?Shanaka Herath, Vice-Chancellor’s Postdoctoral Research Fellow, University of WollongongRebecca Bentley, Associate Professor, Centre for Health Equity, Melbourne School of Population and Global Health, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/961032018-05-21T19:49:54Z2018-05-21T19:49:54ZHousing affordability stress affects one in nine households, but which ones are really struggling?<figure><img src="https://images.theconversation.com/files/217881/original/file-20180507-166903-1jv3l9k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Housing is just one of the essentials in household budgets and it's when there's no way to manage all these costs that financial stress really sets in.</span> <span class="attribution"><span class="source">Emma Baker</span>, <span class="license">Author provided</span></span></figcaption></figure><p>Meeting the cost of buying a home or renting privately is difficult for many in Australia, and sadly impossible for some. Governments are concerned about the housing affordability “crisis” to varying extents, but it’s probably fair to say that we have not seen many effective solutions so far. That’s a result of the complexity of both understanding and solving the problem.</p>
<p>Anglicare’s <a href="http://www.anglicare.asn.au/news-and-media/latest-news/2018/04/29/anglicare-australia-releases-rental-affordability-snapshot-the-rental-crisis-is-worse-than-ever">Rental Affordability Snapshot</a> has, for nearly a decade, painted a worrying picture of almost all of our major cities. Again this year only a tiny proportion of rental properties on the market are affordable for people receiving government support.</p>
<p>But analyses by economists, geographers, the building industry, think tanks, housing researchers and governments themselves define the problem of affordability differently. (And they disagree on the solutions, often relying on <a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993">flawed assumptions</a>.) </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/affordable-housing-policy-failure-still-being-fuelled-by-flawed-analysis-92993">Affordable housing policy failure still being fuelled by flawed analysis</a>
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<h2>What do we mean by unaffordable?</h2>
<p>We aim to contribute to the conversation by challenging how we think about and what we mean by “unaffordable housing”.</p>
<p>The way you measure housing (un)affordability matters – a lot. It affects how big the problem is estimated to be, who is identified as affected, where they live, what interventions might help, and how much these will cost. </p>
<p>In addition, it is tricky to generate simple, usable statistics. This is because Australian households have such varied housing experiences (and costs). Sometimes we <a href="https://theconversation.com/is-this-the-budget-that-forgot-renters-77101">forget renters</a>. Sometimes we don’t distinguish between unaffordable <a href="https://theconversation.com/four-outdated-assumptions-prevent-progress-on-affordable-housing-to-everyones-cost-80198">housing costs for low-income and high-income households</a>. And, importantly, sometimes we confuse the risk of housing affordability problems with the experience of them.</p>
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Read more:
<a href="https://theconversation.com/facts-sink-glib-housing-supply-mantra-the-focus-must-be-on-affordable-rental-87757">Facts sink glib housing supply mantra – the focus must be on affordable rental</a>
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<p>Here is an example. The most commonly used measure of housing affordability in both policy and research settings is the relatively simple measure of “housing affordability stress”. We classify people as having housing stress if they are in the bottom 40% for household incomes and paying more than 30% of their income in housing costs. </p>
<p>This allows us to identify low-income households that are paying high housing costs. (It’s generally assumed that people with higher incomes can meet their basic housing needs.) Using this measure, it is estimated that roughly <a href="https://www.tandfonline.com/doi/full/10.1080/08111146.2018.1460267">11% of Australian households</a> have unaffordable housing costs.</p>
<figure class="align-left zoomable">
<a href="https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=668&fit=crop&dpr=1 600w, https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=668&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=668&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=840&fit=crop&dpr=1 754w, https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=840&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/217880/original/file-20180507-166874-1ule7wh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=840&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Affordability stress isn’t just a matter of having to juggle income and housing costs, but whether a household can afford other essentials.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/great-concept-household-bills-woman-calculating-1082188298?src=fpPOWyJMq-feiiiw9phV7g-1-23">ThiagoSantos/Shutterstock</a></span>
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<p>But housing costs are just one part of a household’s weekly spending. In <a href="https://www.tandfonline.com/doi/full/10.1080/08111146.2018.1460267">recent work</a>, we were interested to see if we could identify who is actually experiencing financial hardship because of high housing costs by looking at their capacity to meet other essential non-housing costs. A substantial meal at least once a day, medical and dental treatment when needed, and warm clothes when it’s cold – these are things that most Australians regard as essential. When people cannot afford these things, we describe them as being materially deprived (you can read <a href="https://www.sprc.unsw.edu.au/media/SPRCFile/Report12_07_Deprivation_and_exclusion_in_Australia.pdf">more about deprivation here</a>).</p>
<p>Within the 11% of the households classified as having unaffordable housing costs, only a small proportion (just under 3% of households) are also materially deprived. When we take a closer look at who is in this smaller group, they are distinct in that they have lower incomes, poorer health, are more financially strained, live in the rental sector, and move house more often.</p>
<p>Some households may be able to cope with high housing costs by “shuffling” other parts of their life. They may, for example, take on more hours at work, draw on savings, or reduce discretionary spending. </p>
<p>Expensive housing becomes a problem when households are unable to make these adjustments. This might be because of illness, for example, or a relationship breakdown, or long-term precarious employment.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/housing-affordability-problems-might-not-be-all-bad-72354">Housing affordability problems might not be all bad</a>
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<h2>At risk or in trouble: an important distinction</h2>
<p>This simple analysis suggests that there is a probably a big difference between who is classified as having unaffordable housing costs and who is likely to be most affected by them. It also raises the question of whether trickle-down housing supply solutions will ever reach the people who are genuinely affected by housing affordability problems.</p>
<p>As a starting point, maybe we should give priority to those households that are facing high housing costs <em>and</em> multiple deprivations. This approach encourages a significant shift in where we perceive our housing affordability crisis to be – with less focus on broader market conditions and more on people’s lived experience. </p>
<p>Finally, reflecting on the Anglicare report, perhaps it points to another important conclusion. The fact that so few people on government support can afford decent housing suggests that the problem might not be a housing one, but a welfare one.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/new-budget-standards-show-just-how-inadequate-the-newstart-allowance-has-become-82903">New budget standards show just how inadequate the Newstart Allowance has become</a>
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<img src="https://counter.theconversation.com/content/96103/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Emma Baker receives funding from the Australian Research Council and the Australian Housing and Urban Research Institute (AHURI)</span></em></p><p class="fine-print"><em><span>Lyrian Daniel 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>Housing affordability is one of Australia’s great unsolved problems. Some households can make adjustments to cover high housing costs, but the ones deprived of essentials are under real stress.Lyrian Daniel, University Postdoctoral Research Fellow, University of AdelaideEmma Baker, Associate Professor, School of Architecture and Built Environment, University of AdelaideLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/925022018-03-04T19:25:26Z2018-03-04T19:25:26ZHow migration affects housing affordability<p>So much of Australia’s history and success is built on immigration. Migrants have <a href="https://theconversation.com/blaming-immigrants-for-unemployment-lower-wages-and-high-house-prices-is-too-simplistic-92255">benefited incumbent Australians</a> by raising incomes, increasing innovation, contributing to government budgets, <a href="https://treasury.gov.au/publication/2015-intergenerational-report/">smoothing over population ageing</a> and diversifying our social fabric. But it is also true that immigration is affecting house prices and rents. </p>
<p>Australian governments are squandering the gains from migration with poor housing and infrastructure policies. Our new report, <a href="https://grattan.edu.au/report/housing-affordability-re-imagining-the-australian-dream/">Housing affordability: re-imagining the Australian dream</a>, shows what’s at stake. Unless the states reform their planning systems to allow more housing to be built, the Commonwealth should consider tapping the brakes on Australia’s migrant intake. </p>
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<strong>
Read more:
<a href="https://theconversation.com/key-workers-like-nurses-and-teachers-are-being-squeezed-out-of-sydney-this-is-what-we-can-do-about-it-91476">Key workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it</a>
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<h2>Immigration has increased housing demand</h2>
<p>Australia’s migration policy is its de-facto population policy. The population is <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3101.0Main+Features1Sep%202016?OpenDocument">growing by about 350,000 a year</a>. More than <a href="http://insidestory.org.au/yes-there-is-such-a-thing-as-too-much-immigration">half of this is due to immigration</a>. </p>
<p>Since 2005, net overseas migration – which includes the increase in temporary migrants – has averaged 200,000 people per year, up from 100,000 in the previous decade. It is <a href="https://www.homeaffairs.gov.au/ReportsandPublications/Documents/statistics/nom-september-2016.pdf">predicted</a> to be around 240,000 per year over the next few years. </p>
<p>Immigrants are more likely to move to Australia’s big cities than existing residents, which increases demand for scarce urban housing. In 2011, 86% of immigrants lived in major cities, compared to <a href="http://www.pc.gov.au/inquiries/completed/migrant-intake/report">65% of the Australian-born population</a>.</p>
<p><strong>Chart 1. Migration has jumped, and so have capital city populations</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=410&fit=crop&dpr=1 600w, https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=410&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=410&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=515&fit=crop&dpr=1 754w, https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=515&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/208204/original/file-20180228-36677-18v4x0p.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=515&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Grattan Institute</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Not surprisingly, several <a href="http://dx.doi.org/10.1787/5kgk8t2k9vf3-en">studies</a> have found that migration increases house prices, especially when there are constraints on building enough new homes.</p>
<p>The pick-up in immigration coincides with Australia’s most recent housing price boom. Sydney and Melbourne are taking more migrants than ever. <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0">Australian house prices</a> have increased 50% in the past five years, and by 70% in Sydney.</p>
<p><strong>Chart 2: Net overseas migration into NSW and Victoria is at record levels</strong></p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=363&fit=crop&dpr=1 600w, https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=363&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=363&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=456&fit=crop&dpr=1 754w, https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=456&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/208207/original/file-20180228-36674-1htxzby.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"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Grattan Institute (Data source: ABS 3101.0 – Australian Demographic Statistics)</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Of course immigration isn’t the only factor driving up house prices and rents. Housing also costs more because incomes rose, <a href="http://insidestory.org.au/why-should-we-care-about-housing-affordability/">interest rates fell</a> and banks made it easier to get a loan. But adding 2 million migrants in the past decade has clearly increased how many new homes are needed.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/bloom-and-boom-how-babies-and-migrants-have-contributed-to-australias-population-growth-78097">Bloom and boom: how babies and migrants have contributed to Australia's population growth</a>
</strong>
</em>
</p>
<hr>
<h2>We haven’t built enough homes</h2>
<p>Housing demand from immigration shouldn’t lead to higher prices if enough dwellings are built quickly and at low cost. In post-war Australia, <a href="https://www.prosper.org.au/2013/09/03/saul-eslake-50-years-of-housing-failure/">record rates of home building</a> matched rapid population growth. House prices barely moved.</p>
<p>But over the last decade, home building did not keep pace with increases in demand, and prices rose. Through the 1990s, Australian cities <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/8752.0">built</a> about 800 new homes for every extra 1,000 people. They built half as many over the past eight years.</p>
<p><a href="https://grattan.edu.au/report/housing-affordability-re-imagining-the-australian-dream/">We estimate</a> somewhere between 450 and 550 more new homes are needed for each 1,000 new residents, after accounting for demolitions. And because more families are breaking up and the population is ageing, more homes are needed to <a href="https://grattan.edu.au/news/making-housing-more-affordable-requires-answers-that-address-supply-and-demand/">accommodate households with fewer members</a>.</p>
<p>The imbalance between demand and supply has consequences. <a href="https://theconversation.com/three-charts-on-poorer-australians-bearing-the-brunt-of-rising-housing-costs-87003">Younger and poorer households are paying more</a> for housing, and owning a home <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842">depends more on who your parents are</a>, a big change from the early 1980s.</p>
<p><strong>Chart 3: Housing construction lagged population in the last decade, but has picked up</strong></p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=409&fit=crop&dpr=1 600w, https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=409&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=409&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=515&fit=crop&dpr=1 754w, https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=515&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/208209/original/file-20180228-36706-uqc0wa.PNG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=515&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Grattan Institute</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Only in the past couple of years has construction started to match population growth, <a href="https://grattan.edu.au/news/making-housing-more-affordable-requires-answers-that-address-supply-and-demand/">especially in Sydney</a>. It’s no coincidence that Sydney house prices have <a href="http://www.abc.net.au/news/2018-02-01/home-prices-dragged-down-by-sydney-property-falls/9382270">finally moderated</a> in the past six months.</p>
<p>But the backlog of a decade of undersupply remains. Development at today’s record rates is the bare minimum needed to meet record population growth built into <a href="https://www.greater.sydney/draft-greater-sydney-region-plan">Sydney’s</a> and <a href="http://www.planmelbourne.vic.gov.au/">Melbourne’s</a> housing supply targets over the next 40 years.</p>
<p><strong>Chart 4: Strong housing construction will need to be maintained to meet city plan housing targets</strong></p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=395&fit=crop&dpr=1 600w, https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=395&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=395&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=496&fit=crop&dpr=1 754w, https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=496&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/208433/original/file-20180301-152569-jezm0a.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=496&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Grattan Institute</span></span>
</figcaption>
</figure>
<h2>So what should governments do?</h2>
<p>Building more housing will improve affordability the most – but slowly. Even at current record construction rates, new housing increases the stock of dwellings by only <a href="https://www.smh.com.au/opinion/making-housing-more-affordable-requires-effort-at-both-ends-of-the-supply-chain-20171121-gzpw63.html">2% each year</a>. But building an extra 50,000 homes a year nationwide for a decade would lead to national house prices between 5% and 20% lower than otherwise. Do it for longer and prices will fall even further. </p>
<p>State governments need to fix planning rules to allow more housing to be built in inner and middle-ring suburbs. More small-scale urban infill projects should be allowed without council planning approval. And state governments should allow denser development “as of right” along key transport corridors. The Commonwealth can help with financial incentives for these reforms.</p>
<p>But the politics of planning in our major cities is fraught. Most people in established middle suburbs already own their houses. Prospective residents who don’t already live there can’t vote in council elections, and their interests are largely unrepresented. </p>
<p>If we want to maintain current migration levels, along with their economic, social and budgetary benefits, we need to do better at planning to allow more housing to be built. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/city-planning-suffers-growth-pains-of-australias-population-boom-75930">City planning suffers growth pains of Australia's population boom</a>
</strong>
</em>
</p>
<hr>
<h2>What does this mean for the migrant intake?</h2>
<p>The Australian government should develop a population policy, as the Productivity Commission <a href="https://www.pc.gov.au/inquiries/completed/migrant-intake/report/migrant-intake-report.pdf">recommended</a>. It should articulate the appropriate level of migration given its economic, budgetary and social benefits and costs. This should include how it affects the Australian community living with the <em>reality</em> of land use planning policy – and contrasting this with the effect of <em>optimal</em> planning policy. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/australia-doesnt-have-a-population-policy-why-78183">Australia doesn't have a population policy – why?</a>
</strong>
</em>
</p>
<hr>
<p>If planning and infrastructure policies don’t improve, the government should consider cutting the migration intake. This would reduce demand for housing, but would also reduce the incomes of existing residents. </p>
<p>The best policy is probably to continue with Australia’s demand-driven, relatively high-skill migration and to build enough homes for the growing population. But Australia is in a world of third-best policy: rapid migration and restricted housing supply are imposing <a href="https://www.rba.gov.au/speeches/2015/sp-dg-2015-08-12.html">big costs on people who don’t already own their homes</a>. If the states are not going to reform planning rules to increase the number of homes built, then the Australian government should consider whether reducing migration is the lesser evil.</p>
<p>Any reduction should be modest and targeted at the parts of the migration program that provide the smallest benefit to Australian residents and migrants themselves. Balancing these interests is <a href="http://insidestory.org.au/putting-the-numbers-back-into-the-immigration-debate/">difficult</a>, because each part of the program has different economic, social and budgetary costs and benefits. </p>
<p>Cutting back family reunion visas would have substantial social costs. Limiting skilled migration would hurt the economy and many businesses. Restricting growth in international students would reduce universities’ incomes.</p>
<p>There are also broader costs to cutting the migrant intake. It would <a href="http://www.abc.net.au/news/2018-02-21/two-senior-ministers-slap-down-abbott-on-migration/9470610">hit the Commonwealth budget</a> in the short term. Most migrants are of working age and pay full rates of personal income tax. And many temporary migrants, <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1314/QG/Subclass457Visa">such as 457 visa holders</a>, can’t draw on a range of government services and benefits, <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1314/QG/Subclass457Visa">including welfare and Medicare</a>. More importantly, cutting back on younger, skilled migrants is likely to hurt the budget and the economy in the <a href="https://www.pc.gov.au/inquiries/completed/migrant-intake/report/migrant-intake-report.pdf">long term</a>.</p>
<p>But there is no point denying that housing affordability is worse because of a combination of rapid immigration and poor planning policy. Rather than tackling these issues, much of the debate has focused on <a href="http://insidestory.org.au/another-lost-opportunity-for-housing-affordability/">policies that are unlikely to make a real difference</a>. Unless governments own up to the real problems, and start explaining the policy changes that will make a real difference, Australia’s housing affordability woes are likely to get worse.</p><img src="https://counter.theconversation.com/content/92502/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Grattan Institute began with contributions to its endowment of $15 million from each of the Federal and Victorian Governments, $4 million from BHP Billiton, and $1 million from NAB. In order to safeguard its independence, Grattan Institute’s board controls this endowment. The funds are invested and contribute to funding Grattan Institute's activities. Grattan Institute also receives funding from corporates, foundations, and individuals to support its general activities as disclosed on its website.</span></em></p><p class="fine-print"><em><span>Brendan Coates and Trent Wiltshire 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>Australian governments are faced with a choice: make the difficult decisions to fix planning systems so more houses can be built, or tap the brakes on Australia’s migrant intake.John Daley, Chief Executive Officer, Grattan InstituteBrendan Coates, Fellow, Grattan InstituteTrent Wiltshire, Associate, Grattan InstituteLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/914762018-02-12T19:07:13Z2018-02-12T19:07:13ZKey workers like nurses and teachers are being squeezed out of Sydney. This is what we can do about it<figure><img src="https://images.theconversation.com/files/205873/original/file-20180212-31386-p7jo6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Nurses who care for people in the city can't afford a property anywhere near their place of work.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/download/confirm/1020945697?src=dVIk0XPbfMBvit4UEZx9Iw-1-78&size=huge_jpg">didesign021/Shutterstock</a></span></figcaption></figure><p>When even teachers and police workers need to travel to the city fringes to find an affordable home that strikes us as a sign of a deeply dysfunctional housing system. <a href="https://www.tmbank.com.au/about/media-releases/2018/emergency-and-essential-services-report">Our research</a> shows key workers are being squeezed out of Sydney by a housing market which has left them behind. Yet Sydney stands out among global cities, like New York, London and San Francisco, for having neglected the housing needs of its essential workforce. </p>
<p>In our study, we <a href="https://www.tmbank.com.au/%7E/media/community/news/pdf/2018/tmb-key-worker-housing-affordability-report-part-2.ashx">identify five strategies</a> to tackle the problem. These could make a real difference for key workers and other moderate income earners.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/high-housing-costs-create-worries-for-city-tourism-and-hospitality-57347">High housing costs create worries for city tourism and hospitality</a>
</strong>
</em>
</p>
<hr>
<h2>Forced out to the fringes</h2>
<p>Unaffordable housing is creating a growing spatial mismatch between where teachers, police, health and emergency workers live and work. Although their jobs are spread throughout the metropolitan region, a majority of Sydney’s <a href="https://www.tmbank.com.au/%7E/media/community/news/pdf/2018/tmb-key-worker-housing-affordability-report-part-1.ashx">156,000</a> teachers, nurses, police, firefighters, ambulance and emergency workers now live in outer ring areas. </p>
<p><a href="https://www.tmbank.com.au/%7E/media/community/news/pdf/2018/tmb-key-worker-housing-affordability-report-part-1.ashx">Our study shows</a> key workers are more concentrated on the metropolitan fringe compared to the labour force generally. And this trend is intensifying. </p>
<p>Over the decade 2006-2016, we found that inner areas of Sydney as well as middle ring areas, including Ryde and Parramatta, lost up to 21.4% of their key worker populations. The largest influxes of key workers were in far-flung Illawarra (a net gain of 10.5%), Hunter Valley (13.6%) and Southern Highlands (17%). </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=507&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=507&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=507&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=638&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=638&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205868/original/file-20180212-31377-178trgy.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=638&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Some areas of Sydney have lost many of their key workers.</span>
<span class="attribution"><span class="source">Key Worker Housing Affordability in Sydney</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>Barriers to buying a home</h2>
<p>Professionally qualified and often with a university degree, key workers typically earn moderate, rather than high incomes.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=217&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=217&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=217&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=272&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=272&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205869/original/file-20180212-31355-p7z1f2.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=272&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Key workers are on moderate salaries.</span>
<span class="attribution"><span class="source">Key Worker Housing Affordability in Sydney</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>They’re not getting rich while teaching our children or caring for our sick, but the stability of their service-oriented professions usually meant home ownership was a realistic expectation. However, over the past decade, younger key workers have faced new barriers to home ownership. </p>
<p>One of these is the deposit gap. This refers to the number of years it takes to save a deposit on a median-priced home. Most lenders now require a 20% deposit.</p>
<p>Single key workers now need nearly nine years to save a deposit for a dwelling in Sydney’s outer suburbs. Couples on two incomes need to save for more than five years. </p>
<h2>Where can key workers afford to live?</h2>
<p>To examine where key workers can afford to buy a house we used affordable price thresholds, based on bank lending criteria and assuming a 20% deposit. Again, this analysis showed key workers have very limited choices. Even a senior constable earning around A$98,000 a year is limited to outer Sydney, with the closest options being Penrith and Campbelltown. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=346&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=346&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=346&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=435&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=435&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205861/original/file-20180211-51727-pmhycu.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=435&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Key workers simply can’t afford to live close to the inner city.</span>
<span class="attribution"><span class="source">Key Worker Housing Affordability in Sydney</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>Their limited housing choices are forcing many key worker households into long car-based commutes. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=235&fit=crop&dpr=1 600w, https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=235&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=235&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=295&fit=crop&dpr=1 754w, https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=295&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/205870/original/file-20180212-31359-365gu1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=295&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Key workers face longer-than-average commutes.</span>
<span class="attribution"><span class="source">Key Worker Housing Affordability in Sydney</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>These long commutes take a toll on their families and finances. Sydney high school teacher Kim Timmins explained in a recent <a href="http://www.smh.com.au/comment/housing-crisis-will-deter-future-teachers-nurses-20180205-h0tuev.html">opinion piece</a>: </p>
<blockquote>
<p>We made the difficult decision last year to leave our network of family and friends and make the move to the uppermost parts of the Central Coast, the closest place we could afford to buy a home big enough for our growing family. …
Our commute is a mix of car and train throughout the week … a complete drain before the day at school and hospital begin, and an economic disadvantage in terms of car travel costs.</p>
</blockquote>
<h2>What should be done</h2>
<p>Several local councils are pursuing <a href="http://www.smh.com.au/nsw/more-affordable-housing-for-green-square-as-council-sells-land-20180202-h0skgq.html">important</a> <a href="http://www.cityofsydney.nsw.gov.au/vision/green-square/planning/affordable-housing">initiatives</a> to provide more affordable rental housing. In our <a href="https://www.tmbank.com.au/%7E/media/community/news/pdf/2018/tmb-key-worker-housing-affordability-report-part-2.ashx">study</a>, we also propose five ideas to help key workers get into home ownership in Sydney.</p>
<p>In particular, the stable employment conditions and moderate incomes of key workers open new possibilities for improving their affordable housing options, without needing additional government subsidy or significant policy change. </p>
<p><strong>Reduce the deposit gap</strong></p>
<p>Key workers have traditionally aspired to, and achieved, home ownership. But those not already on the property ladder face a median house price of around A$900,000 in Sydney. An affordable price for most key workers would be around A$650,000.</p>
<p>To bring home ownership into reach, a shared equity model would allow key workers to buy up to 75% of the home’s value. This would reduce deposit requirements to between 5% and 10% and also make loan repayments more manageable. </p>
<p>Shared equity schemes are offered in South Australia under the government’s HomeStart <a href="http://www.homestart.com.au/MyStart/MyStart/Articles/Shared-equity-loans-sharing-the-home-ownership-dre">finance organisation</a>. This has helped many low and moderate income earners into their first home. </p>
<p><strong>Collaborative development models</strong></p>
<p>“Collaborative” development and financing models provide an alternative to conventional multi-unit housing developments. Under these models, individuals are supported in collectively developing a residential project. </p>
<p>The group members collaborate to acquire a site, appoint an architect and manage professionals through planning and construction. Groups are able to save on developer premiums. They can also customise their building and apartments in ways that save on both capital and recurrent costs. </p>
<p>The <a href="http://nightingalehousing.org/">Nightingale projects</a> in Victoria are an example of this approach. Participants in these schemes can save around 10-12% on prices for comparable apartments. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/affordable-sustainable-high-quality-urban-housing-its-not-an-impossible-dream-57958">Affordable, sustainable, high-quality urban housing? It's not an impossible dream</a>
</strong>
</em>
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<p><strong>Alternative tenure arrangements</strong></p>
<p>Alternative tenure arrangements, such as <a href="http://researchdirect.uws.edu.au/islandora/object/uws%3A26922/datastream/PDF/view">community land trusts</a>, can separate the cost of a dwelling from the cost of land (retained by government or the trust). Under this model, homes are purchased with a conventional mortgage and/or the land component is rented at a marginal rate. Community land trusts are well established in <a href="http://www.communitylandtrusts.org.uk/">the UK</a> and <a href="http://cltnetwork.org/">US</a>, but yet to attract serious policy support in Australia.</p>
<p><strong>Save on construction</strong></p>
<p>Savings in housing design and construction could help increase the supply of affordable homes, provided these savings are passed on to eligible buyers. Innovations in design and construction, as well as reduced requirements for facilities <a href="https://theconversation.com/nightingales-sustainability-song-falls-on-deaf-ears-as-car-centric-planning-rules-hold-sway-50187">such as car parking</a> (in accessible locations) could reduce costs by up to 25-35%. That equates to savings of A$75,000 to A$100,000 for two-to-three-bedroom units or townhouses.</p>
<p><strong>Increase inclusionary planning targets</strong></p>
<p><a href="https://www.ahuri.edu.au/research/final-reports/195">Inclusionary planning</a> requires that a proportion of new housing development be affordable for moderate or low income groups. This approach can support various combinations of affordable housing, to be made available as permanent rental housing or sold on the market. Mandating that 20% of dwellings in all major new housing developments are affordable for moderate income earners, including key workers, could deliver 6,000 to 7,000 affordable “start-up” homes per year in Sydney. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/sydney-needs-higher-affordable-housing-targets-69207">Sydney needs higher affordable housing targets</a>
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<h2>Housing slowdown won’t solve key worker exodus</h2>
<p>Governments seem to be hoping that slowdowns in Sydney and Melbourne prices, combined with first home buyer stamp duty concessions, have fixed the housing affordability problem. It’s true that regulatory intervention to <a href="http://www.abc.net.au/news/2017-03-31/apra-clamps-down-on-interest-only-mortgage-loans/8403712">restrict interest-only loans to 30%</a> of new residential mortgage loans has cooled some investor demand. </p>
<p>However, the housing boom added 70% to Sydney prices from the trough to the peak. This disrupted the home-ownership trajectory of key workers, and in turn added to pressure on the operation of our essential services. </p>
<p>Key workers who don’t own homes may increasingly opt to leave Sydney’s unaffordable housing market. Ultimately, they may seek work in regional New South Wales or elsewhere in Australia. Sydney can ill afford to lose them.</p><img src="https://counter.theconversation.com/content/91476/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Nicole Gurran received funding from Teachers Mutual Bank and Police Bank, to carry out the research reported in this article. </span></em></p><p class="fine-print"><em><span>Catherine Gilbert received funding from Teachers Mutual Bank and Police Bank to carry out the research reported in this article. </span></em></p><p class="fine-print"><em><span>Peter Phibbs received funding from Teachers Mutual Bank and Police Bank to carry out the research reported in this article.</span></em></p><p class="fine-print"><em><span>Yuting Zhang received funding from Teachers Mutual Bank and Police Bank, to carry out the research reported in this article.</span></em></p>People on moderate incomes, including police and emergency workers, have been forced to seek housing on the city fringes, far from their places of work. But there are ways to reverse this trend.Nicole Gurran, Professor of Urban and Regional Planning, University of SydneyCatherine Gilbert, Research Assistant and PhD Candidate, Urban Housing Lab, University of SydneyPeter Phibbs, Director, Henry Halloran Trust, University of SydneyYuting Zhang, Research Associate, Urban Housing Lab, University of SydneyLicensed as Creative Commons – attribution, no derivatives.