House Demand Essay

A housing policy can be thought of as the efforts put in by a given government to transform a housing market(s) for the purposes of achieving social objectives. In most cases, a housing policy is meant to ensure that the general population has access to a home that is affordable. For instance, the British Conservative/Liberal Democratic coalition’s housing policy is aimed at increasing the number of affordable housing units; fostering homeownership; making social housing flexible; tackling homelessness (especially for the

Last but not least, this policy brief suggests the government should remove the stamp duty – tax imposed on property purchases - for the first home buyer to enable their access to the housing market. Stamp duty often discourage people from buying and selling property. Thus, removing stamp duty would improve the supply of housing, as well as reducing a range of adverse impact on the housing market (The Treasury, 2009). Recently, the NSW Government has announced the decision to abolish the stamp duty for the properties worth up to $650,000 (targeting first home buyers) and it would save them up to $24,740 (NSW Government, 2017). This reform does bring a positive impact on housing affordability as it will help first home buyers to access the housing market at an affordable price in comparison to the past.

When the recession happened, and the housing market crashed in Los Angeles a few years back many people lost their homes. The foreclosure crisis displaced many homeowners, drove up demand, and rental prices increased. Now, it is almost two years later, and the dramatic rent increases continue to soar. There would be no issue with cost of living increase except; the increases in income have yet to make the same shifts. “In many cities, rent is rising out reach of

This proposed study examines the development of housing policy and right to buy from the view of government mentality of UK. This study focused on the difficulties not only to the purchaser of council house but also to those tenants who have not purchase tenancies in UK. This proposed study also discusses the role of social housing in 21st century housing policy. Aim of this study is to provide a framework to the researcher and to identify different impacts of Right to buy scheme on housing market. Among other issues, this study also discusses that council housing gives better opportunities and provide security to the tenants with 33% to 55% discount as compared to market price.

It is often easy to castigate large cities or third world countries as failures in the field of affordable housing, yet the crisis, like an invisible cancer, manifests itself in many forms, plaguing both urban and suburban areas. Reformers have wrestled passionately with the issue for centuries, revealing the severity of the situation in an attempt for change, while politicians have only responded with band aid solutions. Unfortunately, the housing crisis easily fades from our memory, replaced by visions of homeless vets, or starving children. Metropolis magazine explains that “…though billions of dollars are spent each year on housing and development programs worldwide, ? At least 1 billion people

Secondly, in the past few years, household debt has increased rapidly. On one hand, it has deep influence on each Australian. With one dollar earned, one Australian is now in debt for two dollars. Australia’s debt for property is just lower than Switzerland in the whole world and doubles as much as America. Compared with the increase of house debt, salaries of Australians have remained steady, which means people’s capacity to repay debt hasn’t improved. Australians have been recorded low wage growth. From January to March 2017 wages grew just 0.5 percent. Over the previous year, wages grew a total of 1.9 percent. From 2011-2016 wages grew just 13 percent (Anderson 2017). Considering price to income ration index, housing affordability in Australia has broadly declined in the past few years. Nevertheless, it’s very easy for anyone to get loans from the bank. People don’t need strict assessment of credit to get loans and the government has some policy like first home owners scheme to encourage house loans. As the interest rate is at the lowest point in history, any boost of the interest rate would cause hundreds of thousands of households under mortgage depress. In addition, the ease to get loans make more house demand, which eventually make the price going up. If people can only use their incomes to buy properties, the demand would definitely not as high as nowadays. The American house crash

Throughout my research I found there is a real cry out for action on providing more affordable house not just locally but throughout the country. There needs to be more funding available to build more gear to income or subsidized housing and all levels of government need to take action.

effect, because they know that it is likely that landlords will not be able to

“The lease rates went up by five to seven percent each month during the peak season (May-July),” Talavera said.

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

Macroeconomics showed how the increase in jobs and population affects the increase or decrease on the apartments. Equilibrium rental rate is higher than before, and the number of apartments demanded and supplied has increase

Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.

Housing demand includes household growth, real incomes, real wealth, tax concessions to both owner-occupied and rental housing, concessions to first homebuyers, returns on alternative investments, cost and availability of finance for housing and the institutional structure affecting housing finance provision (Yates, 2008). The growth in the number of households and in real income results in the increased pressure on housing demand.

Multiple reasons exist for the the lack of affordable housing. On the demand side these include population growth and increased migration to urban areas, easily accessible housing finance, tax incentives and a “strong cultural preference for owner-occupied detached houses”. On the supply side, affordability problems are exacerbated by inflexible and slow responses to the need for new housing stock, lack of infrastructure and generally inefficient planning processes and development assessment by local governments.

Those who rent from private landlords do not only tend to, on average, pay almost double the rent of a person living within social housing but also are twice as likely to live in a residence the Government would class as a “non-decent home”, a residence in disrepair and one that does not meet health and safety standards (Jonathan Owen, 2014). The undisputable growth of private renting sector is not limited to England but is also noticeable in Wales, Scotland and Northern Ireland. In wales the private rental sector represents 14% of total housing, the private rental sector in Scotland has doubled over the last ten years as more than three hundred thousand properties have been sold and in Northern Ireland private landlords own more properties than councils and housing associations combined according to national figures provided in 214 (Jonathan Owen, 2014).