Housing Cost Essay

The problems that arise from housing are numerous. Housing takes up more than half of all real property tax. Not only that, it’s also the largest issue in a family’s budget. The federal government spent $38 billion in preferential subsidies and $2 trillion on housing in total in the year 2006. Rigid zoning codes prohibit certain types of housing from being built. This prevents some citizens from being provided with homes that fit their budget and ads to the chronic problem of homelessness our communities face. Too many houses can crowd neighborhoods and make transit difficult. They can also obstruct view and, when foreclosed upon, lead to plummeting property values.

In short, lack of motivation in exchange for more red tape causes investors and landlords to move towards more profitable options. This movement of money and resources tends to negatively impact people trying to find a place to live, most notably the poor. The National Multi Housing Council (NMHC) states that prospective customers must pay finder fees to find a rental property due to a presumably growing scarcity of available housing. As if this were not bad enough, in some communities rental properties are handed down to friends and family, so they never quite leave the market. In order to obtain housing, new consumers are forced to pay “key money” and other fees. These costs tend to impact young, single, and poor families the most.

Americans across the United States search for the perfect home, location and square footage of course a great price to pay for their castle. Finding an affordable place to live is ideal, and necessary for survival in this day of age. As the years go by the cost of living increases but Americans do not receive a cost of living raise. The demand for affordable housing is on a all time high, but so is the cost of housing in the metropolitan areas across the United States. America must take care of its citizens and should provide affordable housing programs, to assist Americans to either purchase or rent a home.

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

Claim 1: The lack of affordable housing in our state puts a severe financial burden on those who earn the least in California.

What is known about the dearth of inexpensive living spaces in high-cost, heavy populated areas is its scarcity is a function of supply. Demand remains a non-issue for policy makers as demand has

The increasing homeownership rate in the United States is a worthwhile policy goal. The housing economy creates jobs for American citizens as well as brings down the competitive qualities to purchasing a home allowing more middleclass citizens to spend money on houses. In doing so this drives the overall economy up in the United States.

We looked at a variety of ways to help alleviate this cost. Since one of the main issues causing high living costs in the Bay Area is shortage of housing one of the possible solutions could be building more housing. Possible problems here are that San Francisco itself is not too big of a city and in most cities of this type in the world the population density is increased by building tall buildings –

Housing is a big concern of every family because it is where the family established. Most of families are willing to spend most of their income to own a house. However, the housing markets are not always fair and reasonable for normal people. Rich people are buying more than 1 house, but a lot of hardworking wage-earning classes cannot even afford 1 small apartment. Since the real estates are the rigid demand and a good way to keep value, too much money flow into the real estate markets. Sometimes it makes the housing price too high for normal people to afford.

Two economic factors affect supply in a stable housing market, price of related goods or similar houses, and the price of the good, best represented by style or size in the case of the housing market. The affluence of a community typically determines how much homes sell for in those communities, and therefore communities where a lot of people want to live become areas where average home prices are high. (Kumar, 1) There is little space in these affluent communities, and therefore little supply. A good example is New York City, where no homes are available, only apartment buildings, and very few apartments are actively exchanged each year.

The author focuses on rising housing costs. Here is where myself and the author begin to part. Unlike the author I don’t believe the answer is this simple. Although the rates as he describes are rising faster than any other market or minimum wage. One most always look introspectively at a cause first before looking externally. The problem with blanket statement like: the singular reason is rising costs, is that it holds blameless those who choose not to better themselves. One of the major problems I see in the world is a sense of undeserved entitlement. If you can’t pay rent in downtown of city my solution is to look for housing elsewhere. I have moved across the country from my family for years and now am the closest I have been in over 4 years still 5 hours away. Growing up my housing situation has been just as unstable as many described in this piece. It was a sense of pride and entitlement that put me in that situation not rising costs. After leaving home and moving to California I found myself struggling one day to make rent, I was paying $1,800 a month just for rent let alone a car payment and utilities. Although this was unexpected and due to something I could not control I had to remedy the situation I cut back on unnecessary expenses, moved when my lease finished and now I refuse to ever be in that situation again. I am now here at UW-Madison pursuing an education that will allow me to be financially stable for the rest of my life. If I can make it with all of the setbacks I have had in my life, why shouldn’t we encourage others to do the same? Minimum wage although it should cover expenses for housing we all know doesn’t and we adjust our sights to accommodate for that. We get an education and better ourselves and those around us. This allows us the lives we want to live. In closing I hold the renters responsible

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.

However, housing in the United States is still becoming very limited with time; a growing population with nowhere to go is causing overcrowding and lack of housing. However, this is not a problem new to the U.S., housing has been disappear since the early ‘90s. The availability of rental housing decreased significantly between 1993 and 1995, according to Robert Hess (Hess).

This report examines the housing affordability crisis in Auckland, the current situation of the housing market, and extent of this problem. Auckland is in a deficit of houses due to the difference in demand and supply factors. The demographic and economic factors are the main reason for the increase in demand for houses. The supply side is not performing up to the mark to satisfy the demand in the market. The first home buyers are finding difficulties to make choice on their housing needs. The median households are struggling with the high rentals in Auckland market. Lower income households with faces a greater affordability pressures than those are living outside Auckland. There is a shortage in land and houses that are affordable for lower income households. The report suggests some new factors that can be considered to solve the affordability crisis.