Strategies for Addressing Soaring Housing Costs
In a profit-driven housing market, providing security of tenure has taken a backseat, making housing the single-highest household expense in many countries. This crisis is not just a matter of concern for low-income groups; even middle-income earners, such as bus drivers, nurses, and teachers, are struggling to afford city living.
According to the Organisation for Economic Co-operation and Development (OECD), less than half the population finds there is enough good and affordable housing available. This issue is so severe that 82 million Europeans are housing cost overburdened, and between 2010 and 2019, rent prices in the EU increased by 13%.
Experts like Barbara Steenbergen, a tenacious advocate for tenants' rights and an affordable housing market, emphasize the need for courage, strength, and cooperation to bring about change in housing policies. Steenbergen, who has been fighting for these causes for 20 years, highlights the importance of joining a local tenants' union or starting your own initiative to help tackle the crisis.
Tenants' unions provide legal representation, fight for tenants' rights, and engage in housing policy discussions with city councillors, ministries, and authorities. They also offer support and a network to renters, showing that they are not alone in addressing this issue.
One such organisation, the International Union of Tenants (IUT), is an independent membership organisation for tenants' unions worldwide, with 72 members from 47 countries. The IUT has developed a roadmap for making the housing market more socially responsible.
Key strategies commonly advocated by tenant and housing organisations include strengthening tenant rights and protections, increasing public investment in affordable and social housing, implementing rent control or stabilization policies, promoting inclusive urban planning and zoning reforms, supporting cooperative and community land trust models, and addressing systemic inequalities that affect housing access.
Several cities have already begun implementing effective housing policies. Barcelona, for example, has a rent level that allows residents to look up the average rent for flats in their area. A holistic approach is needed to solve the housing affordability crisis, focusing on both the supply and demand side of the market, bringing social responsibility into the discussion, and properly implementing the right to housing.
France has granted its citizens the right to housing, but the country does not have enough housing available to enforce this right. This highlights the need for a balanced approach that considers both the legal aspect and the practical implementation of the right to housing.
Big players like hedge funds and banks have been entering markets and speculating with properties, further exacerbating the crisis. A shift towards a socially responsible housing market is necessary to address the housing affordability crisis and ensure that everyone has a safe and affordable place to call home.
In the face of the escalating housing affordability crisis, managing personal finances becomes increasingly important for both middle and lower-income individuals, as housing remains the highest household expense in many countries. To address this issue, tenant and housing organizations advocate strengthening tenant rights, increasing public investment in affordable housing, implementing rent control policies, and promoting inclusive urban planning – all strategies that contribute to a more socially responsible finance perspective in the housing market.
