Housing affordability

Housing affordability

Housing affordability has become a matter of concern later in us, and it is being discussed together with other severe issues like shifting demographics, fluctuating market prices, and many more. When is a household considered to be having an affordability problem? When a tenant pays a certain amount of their income for housing a considerably high rate, then they have an affordability problem. The percentage payable as rent varies depending on many variables, including; location, demographics, and market. The united states have a housing affordability problem that needs immediate attention. The main problem is on the supply side. According to ATTOM, a real estate and property data company, it is estimated that in about 80% of us markets, the housing prices increase faster than the income and wages. Almost two-thirds of tenants could not afford to buy a home is they so wish, which raises concerns on affordability. The standard definition of housing affordability is set by the US department of housing and urban development. It states that households that pay more than 30% of there income on housing are burdened by affordability. In contrast, those households that pay less than 30% are not overwhelmed and are living an affordable life far as accommodation is concerned.

Affordability influences many factors, some being the residual income after payment of rent. The amount of income that an individual earns is a determinant to the type of housing that they can afford as long as the sum of the lease is not burdensome. In this view, the location of occupancy platys a role as to who becomes your neighbor. A high-end neighborhood attracts particular individuals in the market; most of these individuals are characterized by high residual income that can afford them some luxury. Such locations are associated with few or sparse populations of individuals with high purchasing power. Additionally, rapid economic growth since as much income is made available much of it is spent spurring cash flows hence economic development of the neighboring populations.

Housing is a significant concern, and the local government in the US have a responsibility to provide proper accommodation for their citizen. In ensuring this, the government has come up with different policies that help in the provision of the basic need for housing at affordable rates. One of the social policies enacted by the federal government is the Affordable Housing Act. Affordable housing act is in the constitution, and it comes with tools in mitigating housing shortage and affordability. These tools include; inclusionary zoning ordinances, subsidies, and rent control. However, economists argue differently, saying the only to mitigate affordability problem is to increase the supply of houses by restructuring the zoning rules making it pave the way for new constructions.

Demographics

We analyze the county of Atlanta, which has experienced massive growth of its population in the twentieth century. With the surging numbers, the demand for housing becomes a priority for this population. Those that do not get accommodation within the metropolitan relocates to other areas where they can get some. The movement as a result of relocation has its adverse effects, like the case of Atlanta, relocation triggered redevelopment projects in the new areas of occupancy with the most significant project being the Atlanta BeltLine. Atlanta BeltLine eyed at giving solutions to various Atlanta problems like traffic congestion, housing, and many more. People have relocated from the Atlanta Metropolitan Area to Atlanta BeltLine. Movement as a result of continuous surging numbers in the metropolitan area increases the demand for housing in the urban. The law of demand dictates that when the demand for a commodity is high, and the supply is low, the price of the product rises. Therefore it means that the cost of housing in highly populous areas with few housing spaces in this case Atlanta Metropolitan area is likely to be high. The law of demand instigates relocation of people to regions with affordable housing solutions where the prices are affordable.

Location

the American policy on zoning has a vital role in affordability, according to the national low-income housing coalition, an individual working forty hours a week can afford a two-bedroom house as per the government standards. But this situation varies according to the location where one is or the state. For instance, the rent payable at Califonia is very high though the jobs are lucrative there. As per the standards of that county, no low-income earner can afford a house or a stay there. So the location limits the acquisition of housing.