Affordable housing is the need of every human being around the world. Homebuyers face difficulty finding a house at budget-friendly prices most of the time. However, a home appears affordable if the total consumption is below 30% of the income of the house owner. A vast majority of individuals across the globe are burdened with housing costs, thereby spending more than 30% of their income on house expenses.
The problem of unaffordable houses
Inadequacy of affordable housing is a common problem affecting communities negatively. Many families get burdened with housing costs. They suffer from stress due to inadequate funds for food, medical services, and transportation—moreover, they lack social stability due to expensive housing. Lack of adequate, affordable housing increases traffic and hurts the environment, exacerbating sprawl and leading to a lack of diversity among communities, remarks Maxwell Drever.
Here are a few causes of inadequate affordable housing and the possible solutions for the same:
The crisis of affordable housing leads families to spend a lot of funds on house expenditure. Lack of shelter can lead to severe health issues leading the society to suffer as a whole due to poor health and lack of productivity among individuals.
The main concern of inadequate affordable housing is the supply challenges faced by house owners. There is a considerable shortfall of rental units available to low-income households. Due to a lack of adequate financial support, housing companies cannot offset production, making it variable as per the requirement of low-income groups. At the current production rate, such a poor supply of rental units leads to a negative effect on the demand.
Shifting the demand to meet the supply
To resolve the problem of poor supply, it is essential to shift attention to the demand for affordable housing. One must understand why so many families cannot afford a house. The problem lies in the distribution of wealth and income, leading to the sinking of the middle class and enhancing the wealth of upper-class households. The demand for affordable housing can get minimized through a shift of substantial income, such that they can afford houses at the market rate.
Regulations on land-use
One of the significant causes of shortage in affordable housing is the regulations on land use, making it impossible for renters to navigate the local landscape says Maxwell Drever. The government is creating incidental deficiencies due to such rules on land, as a result, leading to restrictions for making houses affordable.
Addressing the barriers of affordable housing
At the local level, business owners often struggle with affordable housing. Under such circumstances, such individuals must arrange a shelter for the employees, helping them stay in groups, while some of them can change their jobs to afford a decent house at reasonable prices. Political leaders can get in touch with the community, helping them understand the significance of affordable housing.
While the inadequacy of affordable housing is a continuous challenge faced by the vast majority of individuals, the local community should address the problem of developing rental units to resolve the issue. It should also minimize the gap between different income groups, putting more funds in the hands of renters, making housing affordable for them.