claudio acioly jr head capacitybuildingand …...2019/07/14 · the right to live somewhere in...

23/06/2019 Claudio Acioly Jr, UN-HABITAT 1

Claudio Acioly Jr

Head Capacity Building and Training

Senior Housing and Urban Management Expert


AFFORDABLE HOUSING PROVISION:challenges & experiencies in a global context

Claudio Acioly Jr.

Senior Housing Expert

Head of Capacity Building

[email protected]

1.What do we mean for Housing?

It is more than bricks and mortars and a roof. 23/06/2019 Claudio Acioly Jr, UN-HABITAT 3

23/06/2019 Claudio Acioly Jr, UN-HABITAT

4

PoliciesStrategies

Instruments Actions

Institutional Frameworks

Legal & Regulatory Frameworks

LandInfrastructure

Finance

Building Materials

Labour

HOUSING

What is the ultimate goal?

Affordable& Adequate

Housing

Source: Acioly, C. IHS: 1994 2003; UN-HABITAT, 2011.

Urban Policies

Planning Strategies

Planning Instruments Actions

The right to live somewhere in peace, safety and dignity, with access tobasic infratructure, in a location that allows adequate access to jobs and opportunities and urban services, all at an affordable price.

The Right to Adequate Housing

Security

of Tenure

Provision of

services,

materials,

infrastructure

AffordabilityHabitability

Accesibility LocationCultural

Adequacy23/06/2019 Claudio Acioly Jr, UN-HABITAT 5

Denying people access to affordable housing is of course a serious breach of basic human rights.

Hugh Pavletich, in Performance Urban Planning, Annual Demographia Housing Affordability Survey, 2019.

Affordable Housing

Connecting the New Urban Agenda and the SDGs: (re)thinking UN-Habitat’s role

1 Agenda 5 Main Areas 17 Goals 169 Targets 240 Indicators

2030 Agenda for Sustainable Development



8

Sustainable Development Goal 11SDG11.1

By 2030, ensure access for all to adequate, safe and affordable housing and basic

services and upgrade slums


9

Making Housing Affordable

Understanding the supply and demand sides of the housing markets is the first step to design policies.

2.

GOVERNMENT & POLICY INTERVENTIONS

(Adapted from Lundqvist)

SUPPLY DEMAND

DWELLING PRICE

MONTHLY HOUSING AMORTIZATION OR

RENT

FAMILY INCOME

MONTHLY HOUSING REPAYMENT OR

RENT

HOUSING PRODUCTION COST

FAMILY PURCHASING

CAPACITY

AFFORDABILITY

Housing Policy Interventions


10

23/06/2019 Claudio Acioly Jr. / UN-HABITAT

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MONTHLY HOUSING AMORTIZATION OR

RENT

POSSIBLE GOVERNMENT INTERVENTIONS(Adapted from Lundqvist)

SUPPLY DEMAND

DWELLING PRICE

FAMILY INCOME

MONTHLY HOUSING REPAYMENT OR

RENT

HOUSING PRODUCTION COST

FAMILY PURCHASING

CAPACITYFlow

Flow

CAPITAL COSTFINANCING

INFRASTRUCTURECOST

SALES PRICEREGULATIONS

LOCAL FEES

LAND COSTLABOR COST

MATERIALS SUBSIDIES

FINANCIAL SYSTEMRENT REGULATIONS

MANAGEMENT/REPAIR/MAINTENANCE

PROPERTY TAXATION

INCOME TAXATION

SALES TAXATION

INCOME TRANSFERS

COMPULSORY SAVINGS

SUBSIDIZED INTEREST

TAX RELIEF TO HOMEOWNERS

HOUSING ALLOWANCES

HOUSINGGRANTS

AFFORDABILITY


3.The Global Affordability Crisis:

The lack of affordable housing compels people to resort to informal housing solutions which propels informal urbanisation and slum formation and generates more exclusion & segregation

Global Sample of Cities 200 cities that statistically represent this Universe of Cities.

A cooperation between UN-Habitat, University of New York and the Lincoln Institute of Land Policy.

1. Housing affordability is measured by comparison of house prices to household incomes

2. Median house price divided by median annual gross pre-tax household income to assess housing affordability.

3. The Median Multiple is a house price to income ratio that is widely used for evaluating housing markets

1. Areas rated as 'affordable’: housing prices should not exceed 3 times gross annual household earnings.

HOUSING AFFORDABILITY DEFINED

15

25

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0 H

ou

se P

rice

-to

-Ho

use

ho

ld I

nco

me

Ra

tio

Cities

City Housing Sector Occupant Affordability

Accepted Standard for Affordability (3 HH Incomes)

Median Occupant Affordability UN Sample of Cities

City A, Very Affordable 1.7

City B, Affordability Standard 3.0

City C, Median Affordability 4.9

City D, Unaffordable

12.1


0%

10%

20%

30%

40%

50%

60%

70% R

en

t E

xp

resse

d a

s S

ha

re o

f H

ou

se

ho

ld In

co

me

Cities

City Monthly Rent-to-Household Income Ratio

25% Standard for Rent Affordability

Median Rent Occupant Affordability in the UN Sample of Cities

City A, Affordable17%

City B, Affordability Standard

25%

City C, Median Rent Affordability

30%

City D, Unaffordable

58%


16

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Low-Income Middle-Income Middle-Upper-Income High-Income

Hou

se P

rice

-to-H

ouse

ho

ld I

ncom

e R

atio Occupant Affordability

Median Affordability

CONCLUSION 1: Regardless of GDP Housing is UNAFFORDABLE

(house price-to-income ratio higher than 3.0) in the Global Sample of Cities

23/06/2019 Claudio Acioly Jr, UN-HABITAT17

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Low-Income Middle-Income Middle-Upper-Income High-Income

Ren

t Exp

ress

ed a

s S

hare

of H

ouse

hold

Inco

me

Occupant Rent Affordability

Median Rent Affordability

CONCLUSION 2: Regardless of GDP, rental housing is UNAFFORDABLE

(more than 25% of household income committed to housing)

23/06/2019 Claudio Acioly Jr, UN-HABITAT18


4.The 2019 Demographia International Housing Affordability Survey:

309 metropolitan housing markets (metropolitan areas) in 8 countries (Australia, Canada, China [Hong Kong Only], Ireland, New Zealand, Singapore, the United Kingdom and the United States)

Demographia 2019 SurveyHousing Affordability Ratings by Nation

1. The main message is that unaffordable housing is not an unavoidable fatality linked to economic success Some cities achieve high demographic and economic growth without abnormal housing inflation. (Alain Bertaud)

2. High housing prices misallocate resources toward real estate at the expense of the rest of the economy. This misallocation could eventually significantly slow down economic growth and causes a housing bubble to burst, freezing investments in the entire economy.

Key ConclusionsThe 15th Annual Demographia International

Housing Affordability Survey 2019

Conclusion on Affordability

1. House price-to-income ratio above 3 in the majority of cities

2. Accessibility to affordable housing is largely obstructed

3. Access to housing via homeownership and rent is hampered.

4. The housing sector in many cities is not functioning well, with restricted options for several income groups.

5. Distortions reflected on the form & structure of cities: overcrowding, informal housing, slums, poor housing management, high land price, spatial exclusion23/06/2019 Claudio Acioly Jr, UN-HABITAT 23


Lack of Affordable Housing

1. Physical and spatial manifestation in the urban landscape of cities

2. Dynamic informal land and housing markets3. Geography of inequality and segregation

1. informal urbanization2. growth of slums:


5.The Problem of Slums in a nutshellThe scale of the problem calls for immediate action to improve the quality of life in the existing stock of slums and prevent the formation of new ones.


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1 out of 4 people living in urban areas

lives in slums.

Caracas


Nairobi


1995 2000 2010

Slums in AfricaSource: World Atlas of Slum Evolution, UN-Habitat.2015


6.Addressing the Housing Challenge: the Twin-trackapproach.

Citywide slum upgrading is implementedsimultaneously to policies that bringhousing options to scale.


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Preventive Policies1. Plannning BEFORE development2. Unlocking land delivery for planned urbanization3. Unlocking Housing Finance – accessibility for all4. Policies to bring housing solutions to scale.5. Connecting housing to income and the economy

Improvement Policies1. Planning for development

2. Strategies to improve existing slums

3. Approaches to improve the quality of life


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Existing Slums

Existing Slums

New Housing

Existing Housing

SLUM UPGRADING SLUM PREVENTION

Infrastructure provision

Settlement planning

Land regularisation

Housing improvement

Components of the Improvement Strategies

Land supply

Housing Finance

Regulatory Reforms

Building Industry Capacity

Housing & Urban Policies

etc.

Opening Streets

IMPROVE

Planning for Growth

Infrastructure InvestmentPREVENTOne

SinglePolicy


FIVE Policies to Bring Housing Options to Scale

1. Improvement, upgrading and regularization of existing slums must go hand-in-hand with housing at the center of urban policies and strategies leading to a well-performing housing sector and housing supply at scale in diversity of price, location, size, standard and typology;

2. Unlock land for housing: serviced land supply at scale;3. Citywide Slum Upgrading: from projects to programme with

a menu of interventions that includes streets, urban planning, citizen participation, mapping, infrastructure, land allocation, security of tenure, economic development, etc.

4. Unlocking housing finance: different forms of self-financinge.g. property tax, plus-valia, value capture, TDR

5. Data & Information: knowledge and indicators to sustainevidence-based policies


7.Learning from Singapore:

Housing at the centre of transformativeand sustainable urban policies.


So

urc

e: E

. S

tee

ke

lenb

urg

, 2

00

7

Urban Planningand Design

Housing at the Center of Urban

PolicyNationalHousing

FundCPF

LandSupply forUrbanization

Housing at the Center - Singapore

23/06/2019 Claudio Acioly Jr., Chief Housing Policy UN-HABITAT 36

Singapore Housing SystemCentral

Government

Annual GrantLow Cost LandConstruction Loans

Government Bonds

Sale of flats on mortgage loans

Housing Development

Board

CPFCentral Provident FUND

Compulstory Individual contribution

Repayment of mortgage loan on behalf of the buyer

Home Owner

Key Lessons from Singapore


1.Legal provision for land supply

2.A Housing fund and guarantees to housing finance

3.Strong link between urban planning, land allocationand housing development

4.Promotion of the housing sector as a wealth generator


8.Learning from TheNetherlands:

Housing at the centre of transformativeand sustainable urban policies.


National SpatialPlanning

Framework

Housing at the Center ofUrban Policy

NationalHousing Fund

& NationalGuarantee

Fund forSocial

Housing

The 1901 Housing Act & Housing Associations

Housing at the Center – The Netherlands

Key Lessons from The Netherlands


1.Legal provision (1901 Housing Act)

2.Government funding and guarantees

3.Self-regulated sector of Housing Associations (privateentities that build for the public good)

4.Promotion of social rental sector to enable access toaffordable housing by those who cannot find it throughthe market


9.Learning from Chile:

Housing at the centre of transformativeand continuous urban policies.

More than 100 years of housing Policies

The ABC Housing Finance Model

A = Ahorro A = Savings

B = Bono B = Bonus

C = Credito C = Credit

23/06/2019 Claudio Acioly Jr., Chief Housing Policy UN-HABITAT

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10.Learning from Mexico:

Housing at the centre of unsustainableurban policies.


Land Banking

Housing Policies

National Housing Fund(compulsorycontribution) & Guarantee Funds

EnablingInstitutional & RegulatoryFrameworks(increasing privatesector participation)

Housing NOT at the Center of Urban Policies– Mexico

Urban Policies

Making land available for housing

• Establishment of land banking – reservas territoriales

• Privatization of social land – ejidios (usufruct)• Expropriation of social land –• Purchase of social land by government• Purchase of social land by private developers,

builders, contractors

23/06/2019 Claudio Acioly Jr. / UN-HABITAT 50


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RESULTS

• A significant housing production between400,000 and 600,000 housing units per annum during a period of 10-12 years

• 4.9 million housing units abandoned, vacant, under-occupied in the country, equivalent to14% of the total housing stock.

• The rise and fall of large housing developmententerprises

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11.AFRICA:What are the underlying causes of the Housing Affordability crisis in Africa?

Land delivery bottlenecks? Household incomes are too low in relation to housing prices or production prices are too high? High mortgage interest rates?


Across Africa, the confluence of low urban household incomes, high mortgage interest rates, and short tenors results in very low housing affordability.

1. Land Supply remains cumbersome: customary landownership co-existing with roman-based propertyrights regimes and challenges related todocumentation-registration-legal protection;

2. Mortgages and housing finance under-developed;3. Institutional capacity ill-developed;4. Governance of the Housing sector not sufficiently

established.5. Lack of data and information adversely affecting the

development o well-informed and evidence-basedpolicies

CONCLUSIONS


THE ENDThank you.

claudio acioly jr head capacitybuildingand …...2019/07/14 · the right to live somewhere in...

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