Housing reform in a marketised socialist economy: The case of shanghai

Marketisation and privatization reforms implemented in Shanghai since 1980 have facilitated housing construction and the improvement of housing conditions. The multiplication of construction capital would have been impossible without an effective implementation of the consumption reforms and general improvements in the economy.     

The affordability of “affordable” housing in England: conditionality and exclusion in a context of welfare reform

Abstract

Contemporary debates around affordability have largely focused on homeownership and private renting. This article considers the affordable social rented sector in England, in which reforms to social welfare assistance, reduced security of tenure, and a shift towards mid-market rents, are changing access to ‘affordable’ housing for those on the lowest incomes. Drawing on in-depth interviews with housing associations and stakeholders, the article highlights the increasing use of affordability assessments for prospective tenants. These assessments interact with mid-market rental products to increase the potential for exclusion from affordable housing on the grounds of ability to pay. This conditionality is applied not only at the point of tenancy access, but also at renewal of fixed-term tenancies. The research highlights that the combination of welfare and housing policies, in the context of a financialising housing association sector, has the potential to erode access to social housing for those who are perceived as a financial risk, reshaping the focus of social housing.     

The rise and decline of the New South Wales cooperative housing societies

Abstract

In the past, New South Wales cooperative housing societies made an important contribution to the financing of housing construction. In this paper the expansion and later contraction of the societies is explained. It is shown that, in recent times, not only have they suffered from a drying up of loan funding, but also a great number have operated at far below their possible level of efficiency.     

SOCIAL REFORM AND SEGREGATION: TENANT HOUSING IN THE ISLE OF LEWIS, 1795–1900

Abstract

During the nineteenth century, working-class dwellings in Britain became the focus of a series of reports which served to highlight poor living conditions in both town and countryside. Sub-standard housing was believed to be responsible for a variety of physical and social ills. Until the late nineteenth century, rural housing reforms were addressed by individual landowners who sought to provide or encourage improved tenant housing. An important aspect of housing reform involved the introduction of various types of physical segregation. These included the segregation of byre and dwelling, of working and domestic areas, of living and sleeping spaces, and of males and females. This paper examines the role of segregation in rural housing reform in the Isle of Lewis during the nineteenth century, and considers the reasons why attempts at housing reform during this period were generally unsuccessful.     

Changing Residential Land Use Regulations to Address High Housing Prices

Problem, research strategy, and findings: In the past 3 decades, a series of presidential administrations—and the APA—have recommended that cities update their zoning codes to enable more affordable and market-rate housing development. I identify 5 main categories of policy recommendations they have suggested and then assess Los Angeles’s (CA) zoning changes in these categories between 2000 and 2016. I answer 2 questions: First, what zoning changes did Los Angeles adopt to address housing affordability? Second, how were these changes initiated, and what were their scope and geographic extent? I find that Los Angeles made modest progress in the 5 policy categories. The city left its large-lot, single-family zoning mostly untouched, but it rezoned roughly 1,200 acres citywide to allow at least 50 housing units per acre, reduced parking requirements in some areas, made it easier to build accessory dwelling units, and adopted new incentives for affordable housing. Several policy changes resulted from new state laws, and Los Angeles voters approved new incentives for affordable housing near transit. Homeowner influence likely prevented the municipality from engaging in larger zoning reforms. I do not study the effects of Los Angeles’s regulatory changes on housing production and prices, but such research is an important next step. I also do not assess new regulations that counteracted the impact of the 5 categories of policy recommendations.

Takeaway for practice: This research suggests 2 lessons: 1) Planners should encourage state governments to preempt local zoning when it reduces affordable housing options and there is limited local political will for change, and 2) planners should identify feasible and effective zoning changes that would increase affordable housing given local considerations.     

The dismantling of public housing in the USA

The market reigns supreme in the housing system of the United States. Its prominence has led to the efficient provision of housing of ever-rising standards for most Americans. At the same time, the poor continue to live in appalling conditions. The majority of them have to secure their housing without public support. In spite of the long history of government intervention in the housing system, the effect of that support has been marginal at best. Although the large cities contain substantial numbers of assisted housing, the public housing program has failed to provide the poor with the “decent housing and the suitable living environment” promised to every American family in the 1949 Housing Act. Even the direct support of households through housing vouchers and certificates has not broken up the concentrations of poverty. Many households remain trapped in substandard housing in crime-infested urban areas. The articles in this issue evaluate the (possible) outcomes of the latest round of reforms of the American public housing program, which are geared to more private-sector involvement. Jan van Weesep is Professor of Urban Geography and Urban Policy at Utrecht University (The Netherlands). His publications cover a range of housing and urban issues in various countries. He has studied and worked in the United States. Hugo Priemus holds the chair in housing at Delft University of Technology and he is managing director of OTB Institute for Housing, Urban and Mobility Studies.     

The Social Effects of the Physical Environment

Problem: Policymakers and community development practitioners view increasing subsidized owner-occupied housing as a mechanism to improve urban neighborhoods, but little research studies the impact of such investments on community amenities.

Purpose: We examine the impact of subsidized owner-occupied housing on the quality of local schools and compare them to the impacts of city investments in rental units.

Methods: Using data from the New York City Department of Education (DOE) and the New York City Department of Housing Preservation and Development (HPD), we estimate three main sets of regressions, exploring student characteristics, school resources, and school outcomes.

Results and conclusions: The completion of subsidized owner-occupied housing is associated with a decrease in schools’ percentage of free-lunch eligible students, an increase in schools’ percentage of White students, and, controlling for these compositional changes, an increase in scores on standardized reading and math exams. By contrast, our results suggest that investments in rental housing have little, if any, effect.

Takeaway for practice: Policies promoting the construction of subsidized owner-occupied housing have solidified in local governments around the country. Our research provides reassurance to policymakers and planners who are concerned about the spillover effects of subsidized, citywide investments beyond the households being directly served. It suggests that benefits from investments in owner occupancy may extend beyond the individual level, with an increase in subsidized owner-occupancy bringing about improvements in neighborhood school quality.

Research support: None.     

The Limits of Housing Investment as a Neighborhood Revitalization Tool: Crime in New York City

Problem, research strategy, and findings: Local residents often oppose place-based affordable housing on the grounds that such housing will increase crime and decrease property values. New York City has actually used affordable housing investment as a neighborhood revitalization tool, leading to a positive impact on neighborhood property values. Households in distressed neighborhoods consistently cite crime as a problem, but we know little about the impact of housing investments on crime. Using a unique set of point-specific data on affordable housing and crime locations between 2002 and 2008 in New York City, I estimate a set of regression models to identify the effect that affordable housing investments have on crime on the block where they are situated. I find little evidence that affordable housing investments either reduce or increase crime on New York City blocks, suggesting there are limits to the revitalization effects of these subsidies and that crime fears about subsidized housing are unwarranted.

Takeaway for practice: Cities with tight rental markets such as New York should continue to invest in affordable housing construction. However, these cities need to find ways to expand housing options in higher-income, less-distressed neighborhoods, or they risk exacerbating concentrated poverty and further subjecting low-income households to unsafe living environments.     

Measuring Informal Housing Production in California Cities

Problem, research strategy, and ­findings: Planning scholars and practitioners once assumed informal housing was largely absent in the developed world; today they increasingly acknowledge its role in the United States. Recent evidence suggests that informal housing, or non-permitted construction, is a significant phenomenon inside incorporated cities, despite widespread regulations and code enforcement. Informal housing is a de facto source of otherwise scarce affordable housing in many locations, but also compromises health and safety and strains municipal infrastructure and fiscal health. Planners lack a means of measuring informal construction at the scale of individual cities. We propose such a method, and apply it to incorporated cities in California. Data limitations prevent us from precisely estimating the magnitude of non-permitted construction, but our findings suggest that informal channels are an important source of housing production, especially in the places where permitted construction is constrained.

Takeaway for practice: We urge planners to engage with informal housing issues, given the considerable importance of this hidden yet vital portion of the housing market as a means of providing living spaces amid tight housing market conditions. Our method for calculating the rate of informal housing addition is a useful tool for planners to gather basic facts about the informal housing market in their communities, a prerequisite for policy interventions.     

Housing and the Realignment of Urban Socio-Spatial Contracts

Abstract

This paper argues that narratives of the Big Society and Localism in England enacted through housing and planning policies, and housing welfare and benefit reforms across the entire United Kingdom, partly articulate, but primarily mask, a particular governmental response to the present structural crisis in housing and its sociological impacts. This response may be located within a wider political project aimed at realigning understandings of cities and the right for working class and younger populations to occupy urban space and access welfare as enacted through affordable and decent homes. The paper utilizes social contract theory to suggest that the promotion of localism in housing systems needs to be understood within wider struggles of naming the world and reframing the respective rights and responsibilities of the state and particular population groups. The paper concludes that Big Society rationales represent an implicit acknowledgement of a regressive reduction in the ambition of government to address the housing crisis as it affects low- and middle-income populations and its related social consequences.     

31 Flavors of Inclusionary Zoning: Comparing Policies From San Francisco,Washington, DC,and Suburban Boston

Problem: Over the past several decades, inclusionary zoning (IZ) has become an increasingly popular, but sometimes controversial, local means of producing affordable housing without direct public subsidy. The conversation about IZ has thus far largely ignored variations in the structure of IZ policies, although these variations can impact the amount of affordable housing produced and the effects of IZ on production and prices of market rate housing.

Purpose: We provide a detailed comparison of the ways in which IZ programs have been structured in the San Francisco and Washington metropolitan areas and in suburban Boston.

Methods: We create a unique dataset on IZ in these three regions by combining original data collected from several previous surveys. We use these data to compare the prevalence, structure, and affordable housing output of local IZ programs.

Results and conclusions: In the San Francisco Bay Area, IZ programs tend to be mandatory and apply broadly across locations and structure types, while including cost offsets and alternatives to onsite construction. In the Washington, DC, area, most IZ programs are also mandatory, but have broader exemptions for small developments and low-density housing. IZ programs in the Boston suburbs exhibit the most heterogeneity. They are more likely to be voluntary and to apply only to a narrow range of developments, such as multifamily housing, or within certain zoning districts. The amount of affordable housing produced under IZ varies considerably, both within and across the regions. There is some evidence that IZ programs that grant density bonuses and exempt smaller projects produce more affordable housing.

Takeaway for practice: Although variation in IZ program structures makes it hard to predict effectiveness, IZ's adaptability to local circumstances makes it a particularly attractive policy tool. IZ programs can easily be tailored to accommodate specific policy goals, housing market conditions, and residents' preferences, as well as variations in state or local regulatory and political environments.

Research support: This article is adapted from a longer working paper written with financial support from the Center for Housing Policy, the research affiliate of the National Housing Conference.     

A relay race: intergenerational transmission of housing inequality in urban China

Abstract

Housing affordability has become a critical challenge worldwide, consequently constraining young generation from entering the housing market. Despite growing attention to housing inequality in China, little research has been undertaken to reveal the extent to which a family of origin contributes to housing inequality among young adults. Family resources could support the young generation to achieve homeownership not only directly through intergenerational transfers of wealth, but also indirectly through intergenerational transmission of socioeconomic characteristics. Using the 2013 Fudan Yangtze River Delta Social Transformation Survey, this study constructs a structural equation model to examine the direct and indirect influence of parents’ resources on the young generation’s housing outcomes. The results show that the direct influence of parents’ homeownership is prominent, whereas the impact of transmitted socioeconomic status is limited. Housing advantages of parents, derived from their superior institutional status during China’s housing reforms, are being transmitted to their offspring, particularly to sons.     

Affordable Housing,Disasters, and Social Equity

Abstract

Problem, research strategy, and findings: The Low-Income Housing Tax Credit (LIHTC) is the most common financing mechanism for subsidized housing production in America. We investigate how and to what extent states are currently using the LIHTC to prepare for and recover from disasters. We systematically code guidelines in the 2017 LIHTC qualified allocation plans from 53 states and territories to identify disaster-related provisions. Twenty-four states and territories include provisions for preparedness or recovery in their allocation plans, of which 13 include only preparedness provisions, 3 include only recovery provisions, and 8 include both types. Preparedness provisions address project design and siting, whereas recovery provisions direct credits to disaster-affected areas or the replacement of damaged units. Using t tests, we compare three sets of states—those without any disaster-related provisions, those with either preparedness or recovery provisions, and those with both types of provisions—across measures of housing cost, demographic composition, disaster exposure, and political ideology. States with higher homeownership rates, lower home values, and lower rents are more likely than other states to have either or both types of provisions. Future research should investigate state adoption of disaster-related LIHTC provisions to better inform affordable housing policy.

Takeaway for practice: State governments could mitigate disaster-related hazards and help speed recovery by including locally relevant preparedness and recovery provisions in their LIHTC allocation plans. These provisions could encourage resilient construction, weigh the social costs and benefits of LIHTC construction in floodplains, or waive program rules to address postdisaster housing shortages.     

The geography of rental housing and the restructuring of housing assistance in New Zealand

In 1993 major reforms to the delivery of housing assistance in New Zealand came into effect. These included the introduction of an Accommodation Supplement to provide income assistance for housing, the establishment of Housing New Zealand Limited to market former state houses and the setting up of the Ministry of Housing to provide policy advice. These reforms have replaced an explicitly spatial public policy based on the provision of housing stock in particular locations with an apparently aspatial housing policy based on income supplements,. The former state housing construction and allocation programme, however, has generated residential location patterns which continue to constrain and predetermine the choices made by those contemporary households who now draw income supplements. Far from spatially diffusing rental demand, these recent housing reforms show every sign of further concentrating demand and supply of low rental housing and reinforcing the inherited, highly segmented social geography of the New Zealand city.     

Future Directions in Housing and Public Health: Findings From Europe With Broader Implications for Planners

Problem: Chronic diseases such as asthma are rising at alarming rates in the United States and worldwide. Housing environments play an important, underappreciated role in these trends.

Purpose: In this article, we document the magnitude of the association between housing conditions and asthma and related respiratory symptoms, present examples of new systems for addressing adverse effects of housing on health, and discuss how planners might require or encourage such innovations.

Methods: We use logistic regressions based on household survey data from seven European cities to show the magnitude of the association between housing conditions and noise annoyance and the exacerbation of asthma and related respiratory symptoms. To support our argument that new housing intervention systems show great promise for alleviating current housing-related health challenges, we offer several different examples of green building criteria that incorporate health measures.

Results and conclusions: After taking into consideration individual-level characteristics, we found that respondents across a range of cities who were strongly annoyed by general neighborhood noise had twice the odds of a doctor-diagnosed asthma attack or related respiratory symptom than those not at all annoyed. Those strongly annoyed by traffic noise had 68% higher odds. Drainage problems at the housing unit were associated with 54% higher odds of experiencing respiratory symptoms, building structural problems with 27% higher odds, and a leaky roof with 35% higher odds. We identify healthy housing development, construction, and housing rehabilitation systems as promising initiatives for addressing the web of associations between housing and health. We suggest that funds such as Community Development Block Grants or housing trusts could subsidize such efforts, and various existing planning processes could incorporate health requirements or scoring criteria.

Takeaway for practice: There is compelling evidence that housing conditions are associated with poor health. Planners should inform themselves about these and identify opportunities to incorporate health considerations into planning that affects housing.

Research support: None.     

The Spatial Pattern of Low Income Housing Tax Credit Properties: Implications for Fair Housing and Poverty Deconcentration Policies

Problem, research strategy, and findings: Housing policies of the U.S. Department of Housing and Urban Development (HUD) emphasize the spatial dispersal of housing assistance to promote fair housing objectives. The Low Income Housing Tax Credit (LIHTC) program, the nation's largest affordable housing subsidy program, is not administered by HUD and therefore is not closely monitored for compliance with dispersal objectives. Using spatial point pattern analyses, I identify the geographic extent of LIHTC property clustering, characterize the local clustering of individual properties and explore the determinants of local clustering within the nation's largest metropolitan areas. In most metropolitan areas, LIHTC properties are more highly clustered than multifamily housing units, although the extent of clustering differs by metropolitan area. Clustered LIHTC properties tend to be located in more densely developed central-city locations that have higher poverty rates and higher minority concentrations.

Takeaway for practice: To encourage more affordable housing construction within areas that offer greater economic and social opportunities to LHTC residents, policymakers should 1) provide incentives to locate LIHTC properties within high-opportunity areas, 2) eliminate current incentives to cluster housing in areas with inherently higher poverty and minority concentrations (Qualified Census Tracts and Difficult Development Areas), and 3) enhance coordination between HUD and the Department of the Treasury to implement federal fair housing goals.     

Housing price dynamics and bubble risk: the case of Turkey

Abstract

Housing prices have increased substantially in some emerging markets in recent years. Turkish housing market has also experienced a boom over the last decade with rapid house price appreciations. This study is the first to employ two different house price indexes to analyze housing bubble in Turkey in two different time periods, 2010:M1–2014:M12 and 2007:M6–2014:M12. We first capture the determinants of housing price by employing Bounds test and then examine whether rising house prices have been justified by fundamentals by employing OLS/FMOLS/DOLS, Kalman filter and ARIMA models. The Bounds test results suggest that there is a long-term cointegration among house price indexes and housing rent, construction cost and real mortgage interest rate. The results imply that the Turkish housing market has experienced some cases of overvaluation, but not bubble formation. This evidence has several implications for house price dynamics and risks in the Turkish housing market. Based on Turkish experience, the study also draws policy implications for emerging housing markets.     

Assembling an innovative social housing project in Melbourne: mapping the potential for social innovation

Abstract

In Australia, echoing trends in the UK, US and Canada, provision of social housing has transitioned from government-led mechanisms to an increasing focus on partnerships between private developers, government and the not-for-profit sector. In this context, social housing is often achieved via the ‘cobbling together’ of necessary resources over time. This article focuses on an innovative social housing project in the inner west of Melbourne, Australia, that involves the modular construction of 57 transportable dwellings located on government-owned land. I apply a theoretical framework that combines insights from social innovation literature and assemblage to understand the process of assembling a pilot project and to chart how the project may be scaled up or scaled out to challenge the system in which homelessness occurs. The research highlights the role of community housing providers as ‘pivot points’ in the social housing sector and acknowledges the importance of credibility, funding, legislative change and construction innovation in scaling housing social innovations.     

Predicting consumer response to new housing: A stated choice experiment

This paper discusses problems typical of eliciting housing preference. It will be argued that stated preference and choice models are potentially powerful in eliciting consumer housing preferences. This approach is illustrated in an example of new housing construction in Meerhoven. The design of the stated choice experiment is outlined and the estimated part-worth utilities of the attributes are presented. Furthermore, choices for houses in low- and high-density environments are predicted and its is examined how much more households are willing to pay for low-density housing. Eric Molin is Ph.D. candidate at the Department of Architecture and Urban Planning, Eindhoven University of Technology, Eindhoven, The Netherlands. Harmen Oppewal is assistant professor at the Department of Architecture and Urban Planning, Eindhoven University of Technology, Eindhoven, The Netherlands. Harry Timmermans is professor of Urban Planning at the Department of Architecture and Urban Planning, Eindhoven University of Technology, Eindhoven, The Netherlands. He also hold the Carthy Foudation Chair in Makerking at the Department of Marketing and Economic Analysis, University of Alberta, Edmonton, Canada.