We create accessible cities together
Tessa Flantua investigated the housing problem in the Dutch housing market by comparing different government interventions and institutional frameworks in Europe. The aim is to determine whether there are instruments to realize more accessible cities.
More and more people are moving to the big cities worldwide. In 2030, around 60 percent of the world's population lives in urban regions. The number of mega cities (with more than 10 million inhabitants) is more than narrowly in fifty years. The demand for homes is increasing and house prices are higher than ever. More and more studies show that the shortage of affordable housing in cities has numerous undesirable effects. For example, the flow of the housing market is stuck in the absence of affordable homes. Suburbanization, in which people with a lower income leave the city that has become unaffordable, promotes segregation and inequality. The economic vitality and growth of the city are under pressure. And substandard, too expensive housing leads to physical and mental problems (stress) for many people.
Basic needs
Housing markets are influenced by many factors: government and policy decisions, local and global economies, construction costs, land costs, legislation and several levers at national and regional level. Think of housing subsidies, tax benefits, planning planning plans and economic development plans. Governments are responsible for realizing high -quality and affordable housing - a universal, human needs - for everyone. The way in which governments do this worldwide is very different. In many cities, the government plays a major role in the (hierarchical) steering of the housing market, but there are also cities where the housing market can function with relatively limited regulations (free market forces). Many intermediate variants (network management or hybrid market structure) are also possible.
Institutions
To understand why certain measures do work in one country and not in the other, knowledge of the functioning of the institutional framework is essential. Institutions are factors that contribute to the structure and transparency of the housing market. Scientist and Nobel Prize winner Williamson distinguishes four layers:
- social, informal institutions; including standards, customs, culture, traditions and faith,
- formal institutions; laws, rules, guidelines and procedures,
- institutional packages; including contracts and private organizations,
- operational institutions; including price and offer. This is the layer in which the market can move freely.
Informal institutions determine the leeway for the formal institutions, which then outline the framework within which (economic) actors can look for efficient arrangements. They therefore determine the maximum leeway for the operational layer. The problem of informal institutions is that it is things that are not laid down in explicit rules and often happen unconsciously. That makes change difficult and very time -consuming (millennia).
European approach
Although the various institutional systems and the 'embeddedness' of housing markets in these unique frameworks can explain divergence in policy and approach, it is striking that there is currently lack of an approach that can be used European. Climate problems, international trade treaties, financial markets: everywhere countries make agreements with each other to tackle global problems. However, the housing crisis is being tackled nationally, regionally or even locally. And that while we know that the international connectedness of local housing markets can convey or reinforce financial and macro-economic shocks, and urbanization is a growing problem. Seen in that light, a European instrument instrument could help governments to tackle imbalances on (local) housing markets cross -border.
Responsibility
The literature sees roughly four solutions:
- Dealing more freely with development locations,
- reducing construction costs,
- lower financing charges,
- alternative housing forms.
But with purely practical solutions - larger, higher and more building - we will not be able to solve the problems sustainably. For this it is necessary to recognize and value the crucial role of in particular the informal institutions. The government will have to go much more intensively on this domain, but the responsibility lies with all parties in the playing field. We will have to talk to jointly formulate an answer to questions such as 'what do we allow and what do we think is normally'. Because only if everyone is willing to contribute to the solution, is there a chance of success. So get up, mix in the discussion and ask yourself the question: what is my contribution to a fair, future -proof housing market?
The full thesis, entitled 'an international study of public interventions within various institutional frameworks - an inspiration document for the accessible city', can be found on Asre.nl, the website of the Amsterdam School of Real Estate.
