The shortage of affordable housing has become a pressing problem across the globe. It’s because of the improper monetary policies following the aftermath of the worldwide pandemic. A vast part of the money in the economy has found its way into the affluent classes; thereby, the workforce population is not getting their standard wages. More so, the economic stagnation is primarily responsible for the hardship of the workforce. They don’t even get their pay and are thereby not in a position to rent houses in luxurious regions. As a result, the simultaneous housing bubble across the globe is only increasing.
- How do experts explain affordable housing?
The affordable housing crisis worries those populations who belong to the median income group.
- The area median income of individuals falling between 60 to 120% comes within this group.
- These individuals cannot afford to invest more than 30% of their income in paying housing rent.
Several solutions have popped up for providing affordable houses to these individuals. However, reality shows a different story. One explanation is reducing the size of housing units and the unit location in far-flung localities. Both these are not only unacceptable but also inconvenient for the masses. Hence, it becomes impossible for them to get housing units matching their income-expenditure ratio. Therefore, Maxwell Drever suggests a comprehensive study of the issue, and its detailed analysis has become the need of the hour.
- The problem is not only limited to the working population
You must be thinking that the workforce population is the only section pressed hard by this housing crisis. However, you are mistaken. The workers are at the top of the list, followed by other areas of society. The employers employing these individuals in different industries and service sectors are also affected by the shortage of workers in the industrial hub. Along with this, governments are also facing the issue of a short supply of labor in different governmental projects. As a result, every section is struggling with this issue of homelessness.
- A new way of looking for a comprehensive solution
The time has come to move away from the conventional method of solving this issue of affordability. Appropriate steps are essential to use government resources and solve this eviction issue.
- Utilizing vacant estates: In western societies, zoning regulations pose a vast impediment to housing projects. In various parts of the world, residential estates are outrageously expensive. The scarcity of residential properties is the reason behind this. But one solution is available; transforming hotels and vacant properties into residential units for the workforce population.
- Governmental financing:Finance costs are a source of a tremendous burden on housing prices. Hence, it’s difficult for workers to get a residential unit in posh locations. As a result, developers and real estate investors are grabbing the help of government finances and completing their projects.
In various parts across the globe, high housing prices relate to increased labor costs. The short supply of skilled labor is the reason behind this. Maxwell Drever asserts that creating vocational schools and training estates can help the unemployed get a job in different sectors to counter this issue. The government must come forward with proactive policies and agendas to help solve this issue and create an equitable society.