Challenges of the Housing Economy An International Perspective

This timely book addresses key challenges faced by policy makersand the house-building industry in a post-credit crunch world. Itexamines the implications for households, the housing market, theeconomy, as well as for government's policy choices. Challenges of the Housing Economy: an internationalperspective brings together experts from around the world toexamine recent housing market trends. The contributions revealcommon long-term trends in housing markets worldwide. Despitedifferences in supply conditions and the role of planning, there isa trend toward rising house prices that has created significantbarriers to home ownership for young households while increasingthe wealth of older generations. The financial crisis had adifferential impact on housing markets but in many countries wheremortgage finance became severely constrained, house prices fell andthere was a dramatic fall in housing construction. The falls inhouse prices in these countries have ostensibly improvedaffordability but the housing markets have been dominated by thelowering of loan to values applicable to new mortgages which hasfurther raised the hurdles to potential first-time purchasers. At the same time as young households are increasingly rationedout of owner-occupation, public sector expenditure cut-backs inmany countries result in limited new social housing. Instead, valuefor money imperatives will mean new funding models for affordablehousing that require greater use of public-private partnerships.The private rented sector could potentially meet the demand for thenew generation of long-term renters. However, there are doubts - inthe UK at least - that this sector will be able to expandsignificantly or provide an appropriate type and standard ofhousing. This is an essential advanced text for students and researchersof land economy and land management; property and real estate;housing policy; and urban studies.