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Decomposing housing unaffordability

100%
EN
A US household is considered ‘rent burdened’ when its rent exceeds 30% of its income. This simple ratio can be decomposed to better understand the sources of unaffordability across space. To demonstrate this new approach, I rewrite the equation for rent burden as a sum of four factors: rent gap, income gap, excess size cost, and demographic baseline, and show that US rental unaffordability is mostly the result of low incomes. Focusing on the New England region, however, I show that high rent is the primary cause of unaffordability in high-cost, high-wage metro areas. This decomposition can help affordability advocates prioritise strategies appropriately across space.
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80%
EN
This paper explores the ways in which housing wealth is producing new forms of differentiation among households. In doing so, it will argue that ‘asset based welfare’ is now better conceived as ‘asset based social stratification’ and that social class rather than generation remains the primary social divide. However, these class divides are increasingly shaped by the differential ability to accumulate and deploy primarily housing -based assets. These new forms of social (re) stratification will vary societally, temporally and spatially and are currently most evident in what can be described as older, mature home ownership societies. But similar developments and emerging fissures can be observed in newer, ultra home -ownership societies such as China and in the broader interconnections between the mobilization of family assets and the shift from consumer to market societies.
EN
Significant growth in Scotland’s private rented sector over the last 25 years has been led by a large number of individual lay investors/landlords who each own a smattering of properties. These characteristics, which are replicated in several countries where neoliberal housing policies prevail, have implications for the efficacy of PRS investments, but also for conditions and the stability of investment patterns within the sector. This study examines landlord investment risk awareness and behaviours via qualitative interviews with a small sample of Scottish landlords operating at the ‘bottom end’ of the market, which is disproportionately home to vulnerable groups and where some investment risks are believed to be more acute. The findings suggest that some landlords have relatively low levels of risk awareness, fail to adequately consider risk prior to investing in the PRS, have mixed success in selecting and implementing risk management and mitigation strategies, and incur significant risk-borne costs, which can limit returns.
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