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Lecture 6

GGRB05 - Lecture 6.pdf

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Denisse Macaraig

GGRB05 – Lecture 6: Urban Housing and Residential Location Final Exam: August 20, 2011, 9-11am, SW128 Multiple Choice, Short Answer, Critical Analysis Last Week - The built form matters, it affects what the city achieves - Public/Private spaces, where are funds subsidized? - Connections between transportation and urban form - Effects of auto dependence and automobility - Solutions for smart growth and the challenges to retrofitting suburbia URBAN HOUSING and RESIDENTIAL LOCATION Reading: Chapter 10 and 11 Some Questions - How is housing produced? - How do housing markets work? - Why do they fail to supply housing for everyone? - How do neighbourhoods change? - How does government play a role in the housing markets? Some Thoughts - Housing takes up the most amount of raw space - City centre is significantly smaller than the suburban - Political economy is how the Government and Private interests work together to produce society (the relationship) - Housing tied directly to the economic success or failure of society Some Context - Shelter is a basic human need - Environment matters - Physical, social, health, is connected to the lack of or poor housing options - 1/3 of the population in MDRs face challenges in terms of housing (inadequate housing at market prices) - Housing is like other commodities exchanged in the free market - Supply and demand affects prices - There are successes and failures - Government intervention is needed to help provide minimum standards of housing, and is seen as a public responsibility Residential Mobility - Life cycle events - Your type of housing matters depending on your life style - Residential relocation is either forced (involuntary) or voluntary - Forced: demolition, eviction, etc. - Voluntary: o Adjustment  Housing, neighbourhood, accessibility o Induced  Employment, life cycle - Political - Environmental - It’s a personal choice - Developed, Undeveloped, urban, suburban, own, rent, etc. - Most people move by choice Neighbourhood Change - Housing is a major land use and it directly impacts the built form - As housing stock gets older, it has to get updated, renovated, etc. - Most important reason for relocation is associated with characteristics of housing unit (space, quality, design, shift from renting to owning, etc.) - Large areas of North American housing are what we can consider “mature suburbs” - Approaching 40 years old - Lack of new investments lead to other issues Major Theoretical Approaches - 4 main analytical perspectives - Neoclassical economics and demography - Socio-political views - Political economy - Feminism - These ongoing processes provide insight to different aspects of housing issues and its changing processes Neoclassical Economics and Demography - Economists analyze housing in terms of supply and demand, which focuses on consumer demand - Sellers vs. Buyers - Focusing on “buyers” requires focus on demography - In Canada, immigration plays a role on demography Sociopolitical Views - Housing is the most expensive investment in your life - Housing is immobile and land is finite - We can make more of any commodity except for land, there’s only so much of it available - There are different stakeholders that come together to create this “housing market” and affect supply and demand Ex. mortgage, insurance, landlords, developers, government etc. Political Economy - The housing market is like a market, except that only “profitable” housing will be built - Housing does not just make up the city, it generates wealth - Actual capital is important, but with capitalism, inequalities will be produced Feminism - Women have different roles, such as child bearing, long hours of unpaid labour, etc. - Today they have just as much say as men do in choosing housing - Early-20 century, men chose the housing Housing Tenure - 3 Main types of housing tenure: 1) Owner occupier 2) Private rental 3) Public (social) housing Owner Occupation - Majority of housing (owner occupied) in Canada is 63%, the US is 67%, and Britain is 68% - Most people who own homes live in them - Most are single-family detached or semi-detached houses, but the amount of condos are increasing rapidly - Government plays a role in helping the poor buy a home through housing financial support Ex. Mortgage interest tax relief, lower property taxes, etc. Private Rental - In nearly all MDRs, there is a reduction in the number of private rentals units - Rent control policies reduce profits of building rental housing - Government subsidies favouring ownership - Developers won’t just build any type of housing, they build what’s pro
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