From Asset Based Welfare to Welfare Housing? The Changing Function of Social Housing in Ireland

This paper examines a distinctive and significant aspect of social housing in Ireland—its change in function from an asset-based role in welfare support to a more standard model of welfare housing. It outlines the nationalist and agrarian drivers which expanded the initial role of social housing beyond the goal of improving housing conditions for the poor towards the goal of extending homeownership, and assesses whether this focus made it more similar to the ‘asset based welfare’ approach to housing found in South-East Asia than to social housing in Western Europe. From the mid-1980s, the role of Irish social housing changed as the sector contracted and evolved towards the model of welfare housing now found in many other Western countries. Policy makers have struggled to address the implications of this transition and vestiges of social housing's traditional function are still evident, consequently the boundaries between social housing, private renting and homeownership in Ireland have grown increasingly nebulous.     

Collateral Damage? Transforming Subprime Slum Dwellers into Homeowners

Homeownership has been elevated to the position of a superior form of tenure, offering seemingly limitless benefits from capital gain to more abstract notions of security, empowerment and good citizenship. The international discourse on housing policy has mirrored this privilege, particularly evident with the celebration of Hernando de Soto and his promotion of formal property rights as the solution to global poverty. Formalisation schemes are said to provide a route to economic prosperity by transforming ‘slum dwellers’ into ‘homeowners’, offering a route to access formal credit and ending the undercapitalisation of the poor. Drawing on the example of de Soto-inspired MKURABITA titling scheme in Tanzania, this paper questions the favour of ownership policies in the Global South in the wake of the subprime crisis.     

Housing market dualization: linking insider–outsider divides in employment and housing outcomes

Abstract

Past decades of economic growth, relatively widespread employment security and expanding mortgage markets promoted growing homeownership. Recent years have witnessed this growth undercut across advanced economies, evidenced by a rise in other tenures and increasing housing precarity. Studies have shown that these housing outcomes follow more fundamental changes in labour markets. By adapting the established concept of labour market dualization to housing, this paper examines how employment and housing positions are intertwined under late capitalism, and how their relationship has changed through the Global Financial Crisis. Examining the salient case of the Netherlands through household-level data from the LISS panel, we demonstrate that being a labour market ‘outsider’ vastly increases the likelihood of being an ‘outsider’ across housing market dimensions, in terms of housing equity, affordability and prospective asset accumulation. Comparing housing and labour dualization over 2008 and 2016, we further show that the share of multiply disadvantaged households has grown substantially, both among labour market insiders and outsiders.     

Housing Consumption and Housing Inequality in Chinese Cities During the First Decade of the Twenty-First Century

During the first decade of the twenty-first century, Chinese cities have experienced the unprecedented housing development and marketization, which has profoundly changed housing consumption. Using the latest census data, this paper provides the first evaluation of housing consumption in Chinese cities during 2000–2010. Not surprisingly, housing consumption has improved significantly over time, especially in the first five years due to more rapid marketization. Yet, housing inequality has increased significantly over time, especially across education groups. There is also significant spatial inequality at provincial level; yet, it has generally declined over time except inequality in homeownership and subsidized housing. Improved housing consumption and a complex pattern of housing inequality are two main characteristics of housing consumption during this decade.     

Evaluating Tenure Mix Interventions: A Case Study from Sydney,Australia

Policies of tenure mix, by removing concentrations of social housing or through the application of inclusionary zoning-type powers to new developments, are being pursued throughout Australia and in the USA, the UK and New Zealand. Implementing this tenure mix policy agenda requires significant intervention into urban areas that currently have concentrations of social housing, through programmes of regeneration or renewal. Despite this policy agenda, research on the benefits of tenure mix has produced inconclusive evidence, both in Australia and internationally. The paper reports on research undertaken in Sydney, New South Wales, Australia, which tests a method of evaluating tenure mix policy. The exploratory method uses dwelling price data as a proxy for measuring amenity or ‘neighbourhood quality’ changes from tenure mix interventions.     

Young People,Homeownership and Future Welfare

Homeownership has become a ‘normalised’ tenure of choice in many advanced economies, with housing playing a pivotal role in shifts from collective to asset-based welfare. Young people are, however, increasingly being excluded from accessing the housing ladder. Many are remaining in the parental home for longer, and even when ready to ‘fly the nest’ face significant challenges in accessing mortgage finance. This under-30 age group has become ‘generation rent’. As this policy review emphasises, this key public-policy issue has created a source of inter-generational conflict between ‘housing poor’ young people and their ‘housing rich’ elders. To fully understand the complexities at play however, this paper argues that we need to look beyond the immediate housing-market issues and consider how housing policy interacts with broader social, economic and demographic shifts, and how it is intimately connected to debates about welfare. This is illustrated with reference to the UK, although these debates have international resonance.     

Mixed Messages about Mixed Tenure: Do Reviews Tell the Real Story?

Mixed tenure is the predominant development and regeneration strategy and is a key component of UK housing and urban policy. It is purported to provide wide-ranging social, environmental and economic benefits to residents. While there is a large literature on mixed tenure, policy makers are likely to rely on reviews and summaries of the evidence rather than primary studies. But can they rely on such reviews? Using systematic review methods this paper critically appraises recent reviews for the evidence that mixed tenure policies and strategies have achieved any of these expected benefits. Of the six UK reviews of primary studies, most drew on less than half the available primary studies, none provided a critical appraisal of individual studies and made no comment on conflicting evidence between and within studies. While the reviews gave indications of the deficiencies of the evidence base, rather than focus on the implications of these deficiencies, four of the six reviews emphasised the positive effects of tenure mix.     

Tenant Empowerment Through Innovative Tenures: An Analysis of Woonbron–Maasoevers’ Client's Choice Programme

According to the recent Housing Memorandum (MVROM, 2000 MVROM 2000 Mensen-Wensen-Wonen: wonen in de 21e eeuw [What people want, where people live: housing in the 21st century] The Hague Ministry of Housing, Spatial Planning and the Environment  [Google Scholar] ), Dutch housing associations are expected to actively improve the control of tenants over their dwellings and their living environment and offer them more possibilities to choose their own type of tenure. Before the publication of the Memorandum, associations had already developed various innovative types of tenure, for example fixed rent contracts, tenant maintenance programmes and different forms of sale with discounts and risk-reducing conditions. With the introduction of these tenures, associations aim to contribute to their social objectives by improving tenants' satisfaction with their dwellings and to improve the market position of their stock as well. Our paper discusses innovative types of tenure that have been developed by the Dutch housing associations and their benefits and risks for tenant and landlord. We focus on the ‘Client's Choice’ programme that has been developed by the association WoonbronMaasoevers, which is recognised as a front-runner in offering households a wide range of choice in tenure and which is also illustrative of many of the benefits and risks of the innovative tenures.

We conclude that many of the innovative tenures, including the Client's Choice programme, can contribute to tenant empowerment and freedom of choice. However, low-income households will mostly have to keep relying on (social) rented housing and other forms of empowerment. For the landlord, the Client's Choice programme has the benefit of increasing cash flow, which can be used for (social) housing investments. However, there are also substantial financial risks, concerning the rate of sales, the development of market values and the potential costs of having to buy back all the dwellings at the end of their economic lifespan. Thus, the implementation of the Client's Choice programme on a large scale should be accompanied by measures to control or provide for these risks.     

Housing of Limited Property Rights: A Paradox Inside and Outside Chinese Cities

This paper develops a prototypal theoretical framework for analyzing property inalienability and applies it to housing of limited property rights in China, which includes so-called ‘small-property-rights housing’ in the countryside (SLPR housing) and the affordable housing programme in the city (ALPR housing). The integrated analysis of ALPR and SLPR housing focuses on inalienability restrictions to ownership entitlement. By preserving current property use, inalienability can address externality, public good and even macro-economic problems that arise from property sales. Both ALPR and SLPR provide good empirical support for the theoretical hypotheses. Moreover, they demonstrate some important functions of inalienability in a transitional economy, including helping to maintain macro stability as well as being an important tool for implementing partial reform strategy. Inalienability is also a second-best tool to protect private property rights against the intervention of local political forces. However, various problems with ALPR and SLPR housing show that inalienability is also a rough tool that needs to be improved or replaced in order to achieve micro-economic efficiency.     

Housing tenure, housing costs and poverty in Flanders (Belgium)

This article deals with the relation betweenhousing and poverty in Flanders (Belgium). Wedescribe how home tenure and housing costsdeveloped differently for different incomegroups. Furthermore, we assess the impact ofthese evolutions on poverty and welfaredistribution. Our analyses show that in theobserved period homeownership increasedstrongly among higher-income categories andremained stable or even decreased amonglow-income households. Average housing costsincreased more for low-income households thanfor high-income households, leading to a sharpincrease in problematic rent-to-income ratiosfor the former. It appears that especially theprivate rented sector is problematic. Thesocial rented sector is evaluated ratherpositively. Taking account of housing costsleads to higher poverty levels and higherwelfare inequality compared to the situationwhere only current income is used to calculatepoverty and welfare distribution.     

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.     

Socio-demographic Variations of Homeowners and Differential Effects of Parental Homeownership on Offspring's Housing Tenure

Previous research indicates a positive effect of parental homeownership on offspring's homeownership, but rarely tests whether the effect is due to self-selectivity. In the context of socio-demographic variations of American homeowners, this study extends previous research by examining the differential effects of parental ownership of a single-family home. The current study employs the Panel Studies of Income Dynamics data, using propensity score matching to address self-selection problems. The results suggest that the intergenerational effect of parental housing tenure has been differentiated by race, income and the housing tenure history of parents while reinforcing inequality. Even within the same housing tenure, offspring of socio-economically disadvantaged groups are less likely to take advantage of parental homeownership in attaining a single-family owner-occupied home.     

Constructing Renters as a Threat to Neighbourhood Safety

The physical and social organization of the urban environment plays a central role in the formation of individual perceptions of crime. This paper examines how the presence of rental housing is constructed as a risk to neighbourhood safety by urban homeowners. The presence of the ideology of homeownership fosters a social context in which renters are constructed as disinvested and irresponsible individuals. As a result, renters are perceived to pose both an indirect and direct threat to the safety of a neighbourhood. Data from 23 semi-structured interviews with urban homeowners are used to illustrate this process. The paper concludes by considering how these perceptions adversely affect tenants and perpetuate spatial patterns of inequality.     

Social and housing tenure mix in Paris intra-muros, 1990–2010

This paper sheds light on the relationship between the social and tenure mix in Paris between 1990 and 2010. Using two quantitative methods (cluster analysis and entropy indices) it explores the relationship between the social and tenure mix at the microscale. Although no statistical correlation was found, other relationships were discovered. First, the social mix is a function of the general characteristics of the neighbourhood or district. Second, social upgrading and homogenization began in the 1990s, and the ‘ideal’ social mix was a temporary phase before upper socio-professional groups became overrepresented. The growing availability and diversification of social housing has neither created a greater social mix nor slowed down social upgrading, either in general or for social housing in particular. Finally, the fact that there are different categories of social housing landlords nuances the outcomes of policies.     

Urban History Matters: Explaining the German–American Homeownership Gap

The homeownership rate in the United States has continuously been about 20 percentage points higher than that of Germany. This homeownership gap is traced back to before the First World War at the urban level. Existing approaches, relying on socio-economic factors, demographics, culture or housing policy, cannot explain the persistence of these differences in homeownership. This article fills this explanatory gap by making a path-dependence argument: it argues that nineteenth-century urban conditions either began to create the American suburbanized single-family house cities or compact multi-unit-building cities, as in Germany. US cities developed differently from German ones because they lacked feudal shackles, were governed as “private cities” and gave easier access to mortgages and building land. The more historically suburbanized a city, the lower its homeownership rate today. Economic and political reinforcing mechanisms kept the two countries on their paths. The article’s contribution is to give a historical and city-focused answer to a standing question in the housing literature.     

Housing Tenure Preferences in the Post-privatisation Period: The Case of Slovenia

The privatisation of social housing transformed many transitional countries in Central and Eastern Europe into societies with predominant homeownership and a marginalised rental sector. The case of Slovenia shows that, despite a low level of government support of homeowners, the homeownership rate has remained at its unsustainably high level and households continue to express strong preferences for homeownership. The paper explores factors explaining current homeownership preferences in Slovenia. A comprehensive model of housing preferences is built. The model follows the proposition that tenure preferences are strongly influenced by general cultural norms and factors characterising the social, economic and political environments. The model is tested using structural equation modelling based on a survey of Slovenian households. The results reveal that the strong preferences for homeownership in Slovenia can be explained by the firm perceptions of the financial advantages of homeownership and by the lack of available rental alternatives.     

Rethinking Federal Housing Policy

Problem: Federal housing policy is made up of disparate programs that a) promote homeownership; b) assist low-income renters’ access to good-quality, affordable housing; and c) enforce the Fair Housing Act by combating residential discrimination. Some of these programs are ineffective, others have drifted from their initial purpose, and none are well coordinated with each other.

Purpose: We examine the trends, summarize the research evaluating the performance of these programs, and suggest steps to make them more effective and connected to each other.

Methods: We review the history of housing policy and programs and empirical studies of program effectiveness to identify a set of best principles and practices.

Results and conclusions: In the area of homeownership, we recommend that the federal government help the nation's housing markets quickly find bottom, privatize aspects of the secondary mortgage market, and move to eliminate the mortgage interest deduction and replace it with a 10-year homeownership tax credit. In the area of subsidized rental housing, we recommend that the current system of vouchers be regionalized (or alternatively, converted into an entitlement program that works through the income tax system), sell public housing projects to nonprofit sponsors where appropriate, and eliminate some of the rigidities in the Low Income Housing Tax Credit program. In the area of fair housing, we recommend that communities receiving Community Development Block Grants be required to implement inclusionary zoning programs.

Takeaway for practice: In general, we recommend that federal policy build on proven programs; focus on providing affordable housing for low- and moderate-income families and provide the funding to meet that goal; avoid grandiose and ideological ambitions and programs; use fewer and more coordinated programs; offer tax credits, not tax deductions; and promote residential filtering.

Research support: Partial funding support was provided by the National Science Foundation.     

Small Area Variation in Homeownership

The aim of the study is two-fold. First, it adds to the existing state-of-the-art housing research by suggesting the implementation of new econometric methodology. Specifically, the study adds to earlier studies of homeownership by adding spatial impacts. It advocates simultaneous adjustment for intra-municipal correlation and heterogeneity as well as spatial spillover patterns between municipalities. It concludes that ignorance of controlling for intra-municipal correlation, heterogeneity and spatial spillover skews conclusions regarding effects of the determinants of homeownership. Furthermore, it finds that endogenous as well as exogenous spatial spillovers are essential parts of specifying demand for homeownership. Specifically, the demand for homeownership spills over and stimulates demand in neighbouring municipalities, and house prices and incomes exert positive effects on demand for homeownership in neighbouring municipalities. Second, as is clear from the above empirical conclusions, the study adds to existing empirical research and knowledge.