Statement for Prospective Claims

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Part I: Statement for Prospective Claims

The high rate of rural-urban migration has resulted in congestion in the urban enters resulting in a further increase in the housing crisis. With the demand for quality housing increasing above the availability of quality housing, low-income families and the unemployed have found it difficult and nearly impossible to get access to decent housing (Davenport 45). The housing crisis has not only affected developing countries in Africa but has also impacted first world countries in cities such as New York and California. The housing crisis has also been ascribed to a high bank capital influence with the banks controlling the housing industry through not only mortgage credits but also influence. Subsequently, there has been a dramatic increase in the houses’ monopolistic prices with study findings showing that only thirty percent of rent obtained from apartments is used in repair and maintenance while the remainder goes to landlords and landowners (Dwan, Jeffery, and Meghan, 21). The Housing Crisis in cities such as California has also been linked to poor government policies with acts like CEQA getting abused by private enforcements (CalChamber Advocacy). The housing crisis has, therefore, grown to become a global issue and social issue linked to unemployment, low income, and poor government policies.

Several solutions have been brought forward by different professional organizations and research institutes. The Center for Economic Policy Research ( CEPR) for example has advocated for balanced housing policy as the best intervention for the housing crisis. According to the CEPR, a balanced housing policy entails investing in individuals in the same way property is invested in. This means coming up with strategies that will serve to address the housing needs of the vulnerable populations by enhancing the economic capacity of these populations such that they are able to advance up the housing ladder. In situations where the income is not sufficient, the balanced housing policy will involve availing adequate supplemental aid such as health insurance and child care (Ranghelli et al.). Other advocacies have called for reforms in housing acts like the California Environmental Quality Act (CEQA) so that less power is vested under private enforcements so that the act is not vulnerable to abuse by the private sector (CalChamber Advocacy). Organizations like the Housing Partnership Network through initiatives such as the Housing Partnership Equity Trust (HPET) have made attempts to promote a cooperative approach between various stakeholders in dealing with the skyrocketing cost of living in the major cities (Regan).

The existing debate on the available housing crisis in the United State is whether the crisis stems from poor government policies or increased private monopoly. The Center for Economic Policy Research, for example, claims that emphasizing on homeownership without considering other options may not intervene for everyone at each stage of their lives and at every time in the economic cycle(Ranghelli et al.). Hyperinflation of the housing prices makes homeownership inaccessible to most people and when options for housing are unaffordable a housing crisis will be created. According to the CEPR, therefore, the emphasis placed on the housing projects should be placed on equipping the vulnerable populations.

While there is a need for the balanced policy where the low-income earners and the unemployed must be empowered to afford quality housing, my claim is that a more integrated approach must be developed that also involves the private sector. Government Acts must be developed in such a way that less monopoly is vested in private hands and banks. With little monopoly in the private sector, housing projects will be developed with a consideration of not just maximizing on the returns but the provision of quality services at an affordable rate. The Banks must also be controlled in their influence through mortgages so that the public is not exploited.

Part II: Abstract

The existing housing crisis in urban centers worldwide can be ascribed to three main factors: rural to urban migration, poor government policies, and high bank capital influence. Rural-urban migration has resulted in overpopulation in the urban centers resulting in high unsustainable demand for housing while poor government policies such as the California Environmental Quality Act have been developed in a fashion that they are vulnerable to private abuse. High Bank capital influence on the other hand has resulted in more proceeds from housing projects being pocketed by banks instead of being used to enhance the quality of housing. There is, therefore, a need for a policy that will incorporate each of the three factors so that even the low-income earners and the unemployed have access to quality housing while at the same time the housing markets are protected from crashing. This paper explores the available sources in an attempt to identify the main factors associated with the existing housing crisis in the urban centers worldwide and the available advocacies.

Part III: Annotated Bibliography

Robertson, Mary. “The great British housing crisis.” Capital & Class 41.2 (2017): 195-215. https://journals.sagepub.com/doi/full/10.1177/0309816816678571?casa_token=_EzGW7IESLIAAAAA%3AOpcvjICNDLw8Zv315jOPoJf5YjLSB9TjMaAinsFb7wG8J0dH6hwCFSqTPAYznxPxayh72f2z0P4H7NY

This article attempts to provide a historic perspective of the origin of the existing affordable housing crisis, According to the article, the origin of the housing crisis in the United world can be traced back to 1980s, an era characterized by the rise and rise of mortgage lending and privatization of housing stock. These two factors resulted in the restructuring of homeownership and an upsurge in rent.

Terwilliger, J. Ronald. “Solving the Affordable Housing Crisis: The Key to Unleashing America’s Potential.” J. Affordable Hous. & Cmty. Dev. L. 26 (2017): 255. https://heinonline.org/HOL/LandingPage?handle=hein.journals/jrlaff26&div=35&id=&page=

According to Terwilliger (2017), families across the United States have been adversely affected by the rising rents and unaffordable housing costs (255). The article supports the claim with several findings in 2016: approximately twenty million households paid unaffordable rents up from approximately 14 million households in 2001. Also according to the article, over eleven million of these families were excessively burdened spending an extra fifty percent of their revenue on housing. This problem is not only experienced in the big cities in the United States but also towns along the coastline.

Williams, Paulette J. “The continuing crisis in affordable housing: systemic issues requiring systemic solutions.” Fordham Urb. LJ 31 (2003): 413.https://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=1886&context=ulj

This article attempts to examine the various factors that empower some families into economic security while driving others into economic despair. The article also examines the various government initiatives and programs that have been developed to avail affordable housing to the low-income earners and the unemployed. It also attempts to compare the programs developed to avail rental housing with those designed to provide homeownership and both of their implications on the respective populations.

Works Cited

CalChamber Advocacy. California Housing Crisis. California Promise: Opportunity for All. https://advocacy.calchamber.com/policy/issues/california-housing-crisis/

Davenport, Jamie. “The Effect of Demand and Supply fac-tors on the Affordability of Housing.” The Park Place Economist 11.1 (2003): 44-49. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.542.8610&rep=rep1&type=pdf

Dwan, Daniel Joseph, Jeffery Wilson Wong, and Meghan Elizabeth Sawicki. “Subdivided Housing Issues of Hong Kong: Causes and Solutions.” (2013). https://digitalcommons.wpi.edu/cgi/viewcontent.cgi?article=2147&context=iqp-all

Ranghelli, L., et al. “The crisis in America’s housing: Confronting myths and promoting a balanced housing policy.” The Center for Economic and Policy Research (2005). https://www.cepr.net/documents/publications/housing_book_2005_01.pdf

Regan, Rebecca. “A New Approach to Solving the US Housing Crisis.” Stanford Social InnovationReview.2018.https://ssir.org/articles/entry/a_new_approach_to_solving_the_us_housing_crisis

Statement for Prospective Claims

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