Housing affordability: a major problem for many cities

Housing affordability issues are confronting many cities, particularly those that are economically successful. For many, the gap between what people can afford to pay for housing and how much they earn is widening. The rising cost of buying or renting a dwelling located close to jobs and services is having an adverse impact not only on the economic productivity and competitiveness of cities but also on the social cohesion and wellbeing of many communities. What is emerging is increasing spatial patterns of locational disadvantage and inequality within cities. The challenge for cities, however, is not just about providing more dwellings. It is about delivering a range of dwelling types to meet different household needs and budgets and, importantly, in locations close to jobs, services and public transport. It is also about providing security of tenure, well designed good quality housing that is healthy and safe to live in and developing an infrastructure investment pathway that builds more social housing in locations where it is needed. This chapter examines the way cities like London, Melbourne, Vancouver BC and Berlin are dealing with housing affordability issues.