Housing

[Archived from here.]

Private tenants are paying up to £192 a month more in rent than they were last year, with the average rise in England equalling £103 a month, according to an analysis of Office for National Statistics data. 

[…]

A survey of 2,000 private tenants by Shelter and YouGov shows that 58 per cent of tenants have had their rent increased since March 2023, and 34 per cent are now spending at least half their monthly income on rent.

Some landlords are using Section 21 no-fault evictions to force tenants who cannot afford to keep up with rent increases to leave with two months’ notice.

Shelter estimates there were 60,000 renters forced to move because of rent hikes last year.

Counting the existing empty homes in the UK is not a simple task.

There are many reasons why a home might not have a permanent occupier: it could be a second home or it could be that the owner is carrying out renovation work on the property before moving in, for example.

Generally speaking, a home that is unoccupied for six months or more is considered long-term empty. The length of time a home is left empty is often determined by council tax records.

The most recent government statistics, released in November 2023, showed there were 261,189 long-term empty properties in England. That figure represents a rise of 12,556 homes compared to 2022, up 5% annually and 16% since before the pandemic in 2019.

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Overall, taking into account the number of short-term empty homes, second homes, empty homes paying a council tax premium and unoccupied homes that are exempt from council tax, more than one million dwellings are empty in England. That’s an increase of 60,000 since 2018.

The Local Government Association and Empty Homes Network’s (EHN) research found 4% of the country’s homes are empty.

A handsome new library branch in Inwood, at the northern tip of Manhattan, had its soft opening Thursday. It’s the second library in town during the past year or so to try something clever and innovative: partnering with a 100 percent affordable housing development. New subsidized apartments occupy a 12-floor tower above the library.

These days, NIMBYs are always fighting affordable housing projects. Communities are increasingly desperate for libraries. One obvious solution is the twofer — building housing and a library together — because there’s strength in numbers.

[…]

But that’s only half the Inwood project. In addition to the library and apartment tower, which has its own entrance and name, The Eliza, the development also includes a pre-K, a STEM study center, a teaching kitchen and community spaces.

• In short: The proposal includes prescribing standards to ceiling insulation, draught proofing, hot water systems, cooling and heating. 
• An academic says the rental standards would improve quality of life for renters and improve environmental sustainability.
• What's next? Victoria is consulting on the new minimum standards until July 1. 

Regardless of what framework you think makes the most sense, tackling the housing shortage in America is an imperative to tame the cost of living, promote community development, reduce financial stress, and even reduce carbon emissions. The only people who have any problem with making housing more affordable, in fact, are homeowners. And that’s the whole problem.

An ingenious little study from researchers Eren Cifci of Austin Peay State University, Alan Tidwell of the University of Alabama, J. Sherwood Clements of Virginia Tech University, and Andres Jauregui of Fresno State starts from the fairly obvious premise of self-interest: Homeowners want home prices, and therefore their property values, to go up. It’s a simple case of the wealth effect, and people, unsurprisingly, like to be richer. William Fischel, a former economics professor at Dartmouth, coined the term “homevoter” to describe the link between property values and local voting trends. But this paper is the first to track it at the presidential level.

The authors look at voting patterns in 87 percent of all U.S. counties across the past six election cycles, looking for correlations between home prices and vote-switching. Homeowners in counties where home prices rose in the four years before the presidential election were more likely to switch their votes toward the party holding the presidency at that time, whether Republicans or Democrats. Conversely, when housing prices plummeted, homeowner voters switched their votes away from the incumbent party.

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This is a problem for enlightened policy on housing. It’s not about whether zoning deregulation by itself is popular, or rent control. The crux of the matter is this: The population that wants higher home prices is bigger and votes at higher rates than the population that wants lower home prices. In some ways, our dysfunctional housing policies are just that simple. The easiest way to keep prices up, after all, is to mobilize and prevent the construction of new housing nearby. Contrast Tokyo, which has historically permitted nearly twice as many housing units as the entire state of California despite having a third the population and one-two-hundredth the amount of land, so rent therefore remains cheap.

Last month, the FBI reportedly conducted an unannounced raid of Cortland Management, a major corporate landlord based in Atlanta. The surprise search appears to be part of a Department of Justice criminal investigation, first reported by Politico in March, into an alleged scheme among many corporate landlords to artificially increase rents through collusion.

The investigation centers around the use of RealPage, advanced property management software used by many corporate landlords. Following a 2022 exposé by ProPublica, RealPage and landlords that use the software have been named defendants in multiple class action lawsuits, as well as actions filed by the Attorneys General of Arizona and Washington, DC.

According to the lawsuit filed by the State of Arizona in February, landlords that are supposed to be in competition with each other "outsource daily pricing and ongoing revenue oversight" to RealPage. The company allegedly facilitates and encourages landlords to work cooperatively to increase rents. An e-book produced by RealPage says that the company allows corporate landlords who are “technically competitors” to "work together . . . to make us all more successful in our pricing." RealPage bragged that landlords that use its software “continually outpace the market in good times and bad.” In other words, RealPage helps landlords charge higher rates than they would in a truly competitive market. An executive for Camden Property Trust, a corporate landlord based in Houston, said deploying RealPage's software resulted in "pushing people out" with higher rents but ultimately increased revenue by $10 million. 

Prime Minister Winston Churchill announced a 12-year plan for the building industry when peace came.

The Ministry of Works had come up with Emergency Factory Made Houses, or EFMs.

They devised an ideal floor plan of a one-storey bungalow with two bedrooms, inside toilets, a fitted kitchen, a bathroom and a living room.

The homes would be detached and surrounded by a garden to encourage householders to grow fruit and vegetables, and would have a coal shed.

Soon better known as prefabs than EFMs, the homes were cheap to produce and, for many, an improvement on their previous living conditions.

[…]

In the first decade after the war, nearly 500,000 homes were built using some form of prefabrication.

Originally intended as an interim solution until the country could return to building permanent homes with traditional materials, 156,623 prefab bungalows were built between 1945 and 1949.

Each was expected to last for a decade. About 8,000 remain today.

From the ABC's summary:

The Albanese government's Economic Inclusion Advisory Committee released its second report recently. […]

The committee made 22 recommendations to the federal government on ways to best improve economic inclusion and create a more equal and prosperous nation.

It said its recommendations had been made with regard to their fiscal impact, their effect on workforce participation, and the long-term sustainability of the social security system.

But the committee said its five priority recommendations were to:

• "Substantially increase JobSeeker" and related working-age payments, and immediately improve the indexation arrangements of the payments.
• Increase the rate of Commonwealth Rent Assistance to better reflect the high rents actually charged in the private rental market.
• Commit to a "full-scale redesign" of Australia's employment services system to underpin the government's goal of full employment, and to replace the current system, which "worsens economic exclusion" with one that "promotes economic inclusion".
• Implement a national early childhood development system that is available to every child, beginning with abolishing the activity test for the child care subsidy to guarantee access to a minimum three days of high-quality care.
• Renew the culture and practice of Australia's social security system to support economic inclusion and wellbeing.

The committee's experts said that last point was really important.

We’re screwed if housing prices keep going up. We’re also screwed if they go down.

That’s the trap.

It should be obvious by now that the housing crisis is a complex, multi-faceted issue. There is no one silver bullet for addressing it. Unwinding the trap in a way that doesn’t cause a new Great Depression is going to take a lot of different changes working together in order to shift to a housing market that is responsive to local needs, rather than to global capital flows and national fiscal and interest-rate policy.

We need to rapidly add more housing at affordable price points. We also need to avoid crashing the current housing market. We need to encourage investment in our communities, increasing local economic productivity, without allowing all the profits to be siphoned out to faraway global investors. And we need to do it without adding more infrastructure liabilities to our already struggling cities.

What that will look like is more people doing home-to-duplex conversions, building backyard cottages, allowing more small businesses to mix into our residential neighborhoods to create local jobs while eliminating productivity-killing commutes, and growing local financing options.