Housing affordability: addressing the crisis

Each week we focus on a different global topic, highlighting innovative content and insights from LGIU and our members around the world.  

In 2016, the UN reported that almost 90% of cities were considered unaffordable (house prices at more than 3 times the median household income). However, in many developed nations such as New Zealand, the UK or South Korea, this measure is an understatement, with average house prices surpassing 8 times the median household income – and renting just as unaffordable. The trend does not appear to be easing, with prices continuing to outpace wage increases.

The concept of affordability goes beyond the cost of buying and maintaining a house. Homes where this is achievable but which are located far from adequate employment or education opportunities cannot be called affordable. When key workers such as teachers or hospital staff cannot afford to live near their places of employment, they have to bear the financial and time costs of long commutes, displacing households and damaging communities. 

What are the impacts? Aside from individual hardships of housing-related inequality (income and intergenerational), there are compounding issues for regions and even society as a whole, including ageing populations as birth rates fall, displacement of key workers, and the burden on state services and economic growth that higher income inequality brings. 

Why is this happening globally? While causes vary area to area, common factors include: increased scarcity and value of land, low interest rates, supply chain changes, urbanisation, lack of housebuilding, income increases not matching the housing market, and demographic changes.

Can local government make an impact? Some of the local government solutions we've loved this week have been lessons from Berlin's affordability strategy through rent controls and first refusal on buying rental properties, Vienna's unusual approach with 60% of the population in social housing, and an initiative from Cork, Ireland, helping senior citizens to ‘rightsize’ to free up family homes.
Read on to find out how countries around the world are approaching the issue.

• The final LGiU and VLGA global panel of 2021, Innovative Approaches to Addressing the Housing Crisis, brought together representatives from Cornwall Council in the UK, Cork City Council in Ireland, and Infrastructure Australia to explore the ways in which local governments can and are working to address the housing crisis.
• The panel looked at different initiatives to work collaboratively with housing providers and private developers, to expedite planning processes, access land and increase housing supply, as well as the diversity of housing stock available to meet local needs.

Cork City Council's initiative facilitating downsizing from larger homes to free up social and private housing by providing age friendly accommodation has won numerous awards. Read how they achieved this in their article for LGIU. Find the excerpt below, or Click here for the full article.

Rightsizing is a senior citizen’s active, positive choice to move home as a means of improving their quality of life. Senior citizens can move from a large home to a smaller one, or from an expensive area to a cheaper one, and cash the difference – removing the negative connotations of downsizing.

Cork City Council Housing Directorate took the initiative on this trend with the Arus Mhuire project. The initiative was to provide age-friendly homes, to facilitate independence and choice and provide older people with the opportunity to live in housing appropriate to their needs, while at the same time facilitating the effective use of existing housing assets by making use of vacated homes and increase housing provision. The result was a unique, 30-unit housing scheme.

The accommodation is designed to accommodate residents and visitors with varying levels of mobility, including those in wheelchairs, recognising that the needs of each individual will also vary over time. One and two-bedroom dual-aspect houses and apartments are provided, allowing for single or double occupancy, and in the case of the two-bedroom units, a room for guests to stay in, extra storage or a study space as required. All accommodation is at dwelling entrance level, and each unit has a private outdoor space, whether small back garden or balcony.

Car parking is located close to the site entrance and within the central courtyard which is at the heart of the scheme. This courtyard is secure, sunny and animated, and has a unique character, creating a sense of place for residents and visitors alike, whilst providing operational benefit in terms of passive surveillance. The development enjoys quality public transport, pedestrian, cycling and private car links, and is within easy walking distance of a range of amenities and services, including shops, healthcare facilities and a popular local amenity walk.

All dwellings have BER ratings of at least A3, are well-insulated, have quality double-glazed Alu clad windows and doors, making living costs for residents low whilst comfort levels are high.

Thanks for reading!

Next week, we'll be looking at weatherproofing active travel, and beyond that keep your eyes peeled for an International Women's Day special.

If you would like to share your story, you can fill in this simple form or drop me a line at ingrid.koehler@lgiu.org. Please forward this free newsletter to a colleague or share it on social media to help us reach even more people who value local government globally. We tweet from @GlobalLocalLGIU.

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