Housing and Mortgage Markets in Turbulent Times: Is Australia Different?

This paper presents an account of recent housing and mortgage market developments in Australia viewed from a longer-term perspective. It is argued that Australian housing drivers and outcomes are, to some extent, unique, enabling the sector to withstand the fall-out from the global financial crisis to date. However, they have resulted in increasing problems of housing stress for lower-income and younger households who are finding it increasingly difficult to access homeownership and are facing significant affordability problems in the private rental market. The paper casts forward to the next 20 years, outlining both a ‘positive’ ‘business-as-usual’ scenario characterized by buoyant housing demand and strong national economy, and a ‘negative’ scenario marked by stalled economic growth and a sharp downward correction in housing prices. Under both scenarios, it is suggested that addressing the housing affordability gap will remain a major policy challenge.     

Housing and the New Welfare State: Wobbly Pillar or Cornerstone?

This paper is concerned with the question of how to depict the housing-welfare state relationship, with special reference to the present period. It begins with a discussion of how housing can be seen as both the wobbly pillar under the welfare state and a cornerstone. The paper then examines two different perspectives, variously giving explanatory weight to economic and cultural factors. The first, derived from the work of Michael Harloe, provides an explanation of the tendency of social housing to move towards a residual role, but has nothing to say about the growing significance of housing markets and housing wealth in relation to the contemporary welfare state. The second, originated by Jim Kemeny, is based on international correlations of homeownership rates and levels of welfare state expenditure. It is argued that this approach has limited, and diminishing, relevance in the context of the early 21st century. The paper suggests that in the present period housing, especially the housing wealth of owner occupiers, provides governments with the opportunity to pursue welfare restructuring. This idea is explored by reference to evidence from Great Britain, a country with a high level of homeownership and an active programme of public service reform.     

Immigration and Housing: The Missing Link?

Few observers doubt that we face a fiscal crisis in the provision of urban infrastructure. Since the mid 1980s the main source of funds hitherto available to utilities like the Sydney Water Board, namely public borrowing, has been drastically reduced. Simultaneously, statebudgctallocations for education, health, transport, etc., have declined in real terms, generating bitter complaints from those affected. Over the same period there has been a sharp decline in housing af fordability, particularly in Melbourne and Sydney – the main locations for overseas migrants.     

Is Homeownership the Answer? Housing Tenure and Indigenous Australians in Remote (and Settled) Areas

This paper examines the relevance of recently floated policy ideas for extending homeownership to remote Aboriginal Australians. It argues that while the housing tenure system in more densely settled Australia is dominated by homeownership, this is not, and cannot realistically be expected to be, the case in remote areas. The paper uses data from the 2001 Census, organized by remoteness geography, to demonstrate the different character of the housing tenure system in remote Australia. The paper argues that homeownership in remote Aboriginal communities is a somewhat unrealistic policy goal, given the underlying income and employment status of Indigenous people in these communities. The paper also argues that there are better measures of Indigenous housing need and disadvantage in Australia than low homeownership rates. It briefly reports on one past failed experiment in Queensland to introduce homeownership to a remote Aboriginal community.     

Political Economy and Housing in the Twenty-first Century – From Mobile Homes to Liquid Housing?

The recent Global Financial Crisis started as a crisis in the US sub-prime mortgage market, and rapidly spread to a wider financial crisis. This article suggests that beyond the crisis, we can now see that households are playing an evolving role as a site of risk absorption. In so doing, households have become a frontier of capital accumulation, not just as producers and consumers, but also as financial traders. Households are increasingly buying financialized products as an ordinary part of daily subsistence – houses, insurance, education, electricity and mobile phones. But at a level beyond the household’s daily reality, these regular purchases are being re-specified as assets, on which asset backed securities are built and then traded. It is in this way that by securitizing mortgage debt, finance has given global liquidity to housing. The size of securitized markets on housing as well as household assets and payment streams now dwarfs stock markets. The requirements of this emergent financial citizenship for the house and households extend beyond just honouring payments on a home purchase, it is requiring a culture of financial calculation that becomes absorbed as part of the daily norms and dispositions of social being. The presumption of rights of access to housing, education and health care are being replaced by the acceptance of individual financial participation and calculation. Here, we argue housing is being reconstructed as both the capital base for, and site of, individualized life course risk management.     

Supportive Housing: Justifiable Paternalism?

Scholars have long draw on neoliberalism and paternalism as theoretical frameworks to argue that states have become less generous in providing welfare and housing resources. These theories similarly demonstrate that the resources that are provided are characterized by conditional exchanges, whereby welfare recipients and social housing tenants are required to comply with behavioural conditions. Theoretical critiques of state intervention influenced by neoliberalism and paternalism are broad, but they generally agree that conditional welfare approaches, including social housing, focus on changing individuals living in poverty themselves and not sufficiently changing policy, economic, social and institutional forces that underpin poverty. In light of these theories of state intervention, this article draws on an Australian qualitative study with tenants and service providers in supportive housing. The article shows that supportive housing is positioned as a significant intervention to not only house disadvantaged groups, but rather as an optimistic mechanism to directly improve disadvantaged people’s lives. The article argues that when coupled with long-term housing, a weak form of paternalist welfare for people who have experienced chronic homelessness can be justified.     

Passing the Housing Policy Baton in the US: Will Cities Take the Lead?

Federal leadership and funding for affordable housing policy declined in the 1980s. In the 1990s, the commitment to low-income housing continues to wane and is accompanied by funding uncertainties as the federal government redefines its role as policy-maker. The federal withdrawal leaves a void in housing policy-making as yet unfilled by lower levels of government. Given the direct impact of housing availability and conditions on local communities, cities may be the most likely candidates to assume the primary role in affordable housing policy. Some policy analysts, however, argue that cities will not assume the lead role or spend local dollars on redistributive policy such as affordable housing programmes. This paper examines affordable housing policy in the inter-governmental context, the influence of inter-governmental factors on local housing commitment, and the potential for cities to fill the gap left by the federal government. The analysis uses US Census data combined with data from a mail survey of city housing professionals in a representative sample of US cities with populations of 25 000 or greater. The findings from the analysis show that many cities do spend local dollars on housing programmes, but that the decision to do so is influenced by inter-governmentalfactors. Moreover, the results suggest that states, not cities, are likely to assume the leadership role for affordable housing policy in the future.     

Causes and Consequences? Exploring the Shape and Direction of the Housing System in the UK Post the Financial Crisis

The impacts of the global financial crisis continue to reverberate around the world. This paper explores its impacts in the UK in general and England in particular in relation to the housing market and housing policy. It examines the underlying trends which were already in place before the financial crisis and the impact of the crisis and the government's policy responses on the housing and mortgage markets. The paper argues that the crisis mainly exacerbated already long established tensions while the current policy solutions have ameliorated, but not fully, resolved these pressures.     

Housing Policies and the Little Tigers: How Do They Compare with Other Industrialised Countries?

This paper locates the housing policies of the little tiger countries-Hong Kong, Singapore, South Korea and Taiwan-in the policy regimes approach found in the literature dealing with other industrialised countries. It begins by establishing three regime types-liberal, communist and corporatist-describing different balances of market and state in the development, construction and consumption phases of housing provision. Building on a discussion of the general approach in the little tiger countries to economic and social policy, and particularly of the nature and extent of state intervention in their housing policies, it proposes that together they represent a fourth regime type, one that can be characterised as corporatist in production and liberal in consumption.     

Housing development and policy change: what has changed in Turkey in the last decade in the owner-occupied and rented sectors?

Since 2002, The Justice and Development Party has been governing in Turkey. From their first period to the current, major changes have been observed in the Turkish housing system, regarding both owner occupied and rented sectors. First one is the introduction of Mortgage Law in 2007. As already a home-owner society with a 64.16 % share in urban areas (2003), home ownership ratios can be argued to increase in coming periods. Second modification in owner occupied sector was significant policy change in Housing Development Administration (HDA) of Turkey. With a “housing mobilization” project, almost 500,000 new dwellings were built by HDA all over the country in 10 years. This has been a record in HDA’s history. Remarkable changes occurred in the rented sector as well. Originally, Turkey has been characterized with absence of public renting and considerable proportion of private rented stock especially in the big cities. Governments did not develop social rented housing and pro-owner laws have been followed. Renters could face eviction under certain situations determined by the Law on Property Rents, however these were subject to misuse by homeowners. As a third major change, a new Code of Obligations was introduced superseding Law on Property Rents. In this paper, recent changes in both rented and owner occupied sectors of the Turkish housing system are analyzed with reference to mortgage law, HDA’s new policies and changes in private renting legislation. In doing so, several key figures like buildings produced, inflation rate and physical attributes of private renting are provided.     

Just Housing Policy: Is There a Moral Foundation for a Homeownership Policy?

There is no lack of social and political reasons in favor of public policies oriented toward helping people to become homeowners. In this study, we undertake a normative inquiry into the moral foundation, if any, behind those politically viable and beneficial publicly supported homeownership programs. What we want to examine is whether public support of homeownership is a question of justice or merely a matter of beneficence. In particular, we have reviewed three different portrayals of homeowners: homeowners as right-holders; homeowners as stakeholders; and homeowners as decent citizens. Our position is that it would do more harm than good to defend homeownership as a matter of basic rights; instead, homeownership can be justified by developing Bruce Ackerman's idea of stakeholding and the notion of asset-building as championed by Michael Sherraden. To conceive homeownership as what people deserve as stakeholders as well as a form of lifelong asset that people can rely on when encountering risks and contingencies provide sufficient ground to render public support of homeownership.     

Post-Socialist Housing Systems in Europe: Housing Welfare Regimes by Default?

This article develops a conceptual framework derived from welfare regime and concomitant literatures to interpret housing reform in post-socialist European countries. In it, settled power structures and collective ideologies are necessary prerequisites for the creation of distinctive housing welfare regimes with clear roles for the state, market and households. Although the defining feature of post-socialist housing has been mass-privatisation to create super-homeownership societies, the emphatic retreat of the state that this represents has not been replaced by the creation of the institutions or cultures required to create fully financialised housing markets. There is, instead, a form of state legacy welfare in the form of debt-free home-ownership, which creates a gap in housing welfare that has been partially filled by households in the form of intergenerational assistance (familialism) and self-build housing. Both of these mark continuities with the previous regime. The latter is especially common in south-east Europe where its frequent illegality represents a form of anti-state housing. The lack of settled ideologies and power structures suggests that these housing welfare regimes by default will persist as part of a process that resembles a path-dependent ‘transformation’ rather than ‘transition’.     

Cyclical versus Structural Sustainability of Homeownership: Is Counter-cyclical Intervention in Housing Markets Enough?

The economic and housing market difficulties that emerged as a result of the recent global financial crisis (GFC) have encouraged a focus on the cyclical sustainability of homeownership. As a result, there has been inadequate attention paid to the impact of increased real household incomes and wealth on the structural sustainability of a housing system built on homeownership as the dominant tenure. This paper argues that, where housing supply is relatively inelastic in the long run, underlying demand pressures may keep house prices on a path which continues to diverge from household incomes. This will add to borrowing constraints already faced by aspiring first homeowners with low and moderate incomes and with limited wealth. If financial institutions tighten lending standards in response to the GFC, households with limited equity and limited capacity to pay will find it even more difficult to gain access to finance than has been the case in the past. This raises the question of whether homeownership can be sustained at its current levels. The paper uses outcomes in Australia to illustrate the points made and suggests that other countries, such as the UK, may well be about to follow the same path.     

How Far Do People Search for Housing? Analyzing the Roles of Housing Supply,Intra-household Dynamics,and the Use of Information Channels

In this paper, we investigate the spatial extent of the housing search. Using the concepts of mental map and awareness space, we argue that search space is affected by households' preferences, what is available on the housing market, and the use of information channels as well as their interactions. We hypothesize that households whose members disagree with each other have a larger search spaces than those whose members agree. Furthermore, the supply in the housing market and the use of different information channels may influence the search space differently for agreeing versus disagreeing households. We collected data from face-to-face interviews with 82 households (couples with or without children) who purchased a home in the New York City area between 2004 and 2009. The results support our hypotheses, suggesting that intra-household dynamics plays an important role in housing search.     

‘Race’, Deprivation and the Research Agenda: Revisiting Housing,Ethnicity and Neighbourhoods

Building on a general account of recent changes and on local case study material, this paper develops an overview of contemporary issues in the interconnected research domains of UK ethnic relations, disadvantage and housing neighbourhoods. It aims to contribute to some rethinking of ethnic disadvantage and discrimination within analytical frameworks, while looking towards more defensible research strategies. Matters referred to in our overview of change include regulatory developments, diversities within and between settled minority ethnic groups, changed patterns of in-migration, disadvantage amongst low-income white households and convergence between ethnic groups in internal socio-economic differentiation. A West Midlands case study used to complement this broad coverage provides reminders of shared problems across ethnic boundaries, and of the merits of caution when hypothesising causative links between deprivation and ethnicity in disadvantaged areas. The section ‘Towards Better Research Practice?’ discusses research approaches and priorities, suggesting that it may be useful to revisit the ‘traditional repertoire’ deployed in the UK ethnic relations and housing.     

Linking the Formal and Informal: Favela Urbanisation and Social Housing in São Paulo

São Paulo is Brazil's largest city with over 20 million inhabitants, 14 per cent of which live in informal settlements. Here author, critic and editor Fernando Serapião describes various housing initiatives led by Elisabete França during her two stints at the city's Secretaria de Habitação (SEHAB – Housing Secretariat), which employed design as a tool to upgrade and more fully integrate the city's favelas in the formal city.