Housing shortage comes as a pressing problem in modern cities. All across the globe, you have multiple examples of the workforce population struggling for shelter says Maxwell Drever. Most individuals in the average income category cannot afford to rent or buy a house. They are looking for cheap options, and therefore an affordable housing unit is a viable solution.
Population growth is a significant factor contributing to the issue. Scientists estimate that the world population will exceed 10 billion shortly. Hence, it is logical to increase the number of housing for the increasing population. The limited supply of housing space, stagnant wages, and rising prices of commodities have exacerbated the crisis.
The increasing cost of land
If you look at the past, you will see that land prices were low compared to the current scenario. However, things changed rapidly, and the land cost has skyrocketed in big cities. The increasing cost of land directly affects the price of the housing sector. Only the wealthy population can afford a luxurious apartment, but that is not the case with the workforce.
The way forward
Now that you know about the causes of the housing crisis, it’s time to look into the solution. The housing shortage is a local problem. However, it has global repercussions. The housing shortage is not only a dilemma in cities but also in the surrounding areas. If you look at the metropolitan regions, Maxwell Drever states, you will see that the workforce population is also struggling to get shelter. Hence, new constructions have become a fresh trend.
Supply of cheap money
Yes, governments and financial organizations have come forward to provide a smooth flow of capital to investors and property owners. It is a viable picture for the latter. Along with this, it makes the construction a smooth process and also caters to the workforce population.
Federal grants and tax concession
Another viable solution to this pressing problem is the revenue concession and state grants. Governments all across the globe have come forward with supportive policies to make affordable housing units a reality. It is helping real estate companies plan for building new housing units. Hence, the average person can now dream of a housing unit that falls within their affordability.
Public and social housing
Governments all across the globe are spending money on public housing. Several housing projects provide affordable residing units to individuals belonging to medium-to-low income. By expanding and introducing these projects, individuals did not struggle to get shelter.
The government introduces multiple rent control schemes to support landholders and property owners. Maxwell Drever explains that rent control schemes have various advantages and help achieve affordable living spaces.
Another measure for dealing with the housing crisis is the role of the government. Since real estate and land both are available, a proactive part of the government is necessary. Focusing on the construction of affordable housing units rather than luxurious homes has become the need of the hour. The government must finance these projects so that the crisis does not aggravate.