HOUSING COSTS PUT SQUEEZE ON CITY DWELLERS .
××××××××××××××××××××
City dwellers around the world pay $650 bn more in housing costs than they
can afford yearly , as rapid urban growth meets a constrained supply , according
to a report .
÷÷÷÷÷÷÷
Some o the world's leading urban areas face the biggest housing cost
problems , with New York , Tokyo and London among the worst affected , the
McKinsey Global Institution said .
Beijing , Sao Paulo and Buenos Aires are among those facing the biggest
crunch among lower income cities .
÷÷÷÷÷÷÷÷
McKinsey looked at the cost of housing as a proportion of household income
, showing the extent to which a city's residents face financial pressure .
For the first time in history , more than half's the world population lives
in urban areas and the proportion is set to rise to two-thirds by 2050 ,
according to the UN .
Housing affordability has become "a huge social and economic issue
affecting billions ", said Jan Mischke , a senior executive at McKinsey . "
More and more cities are growing fast , they are quite likely competing for
talent and workers " .
Around the world , 330 m urban households lack decent
housing or ate cutting back on basic spending to cover their
housing costs .
By 2025 , this number will grow to 440m - a third of the world's urban
population - unless governments do more to build and subsidise housing .
÷÷÷÷÷÷÷÷÷÷÷÷
The study recommends reducing building and maintenance
costs and cutting the cost of finance for both home buyers and housing
developers .
Governments should also do more to free up sites for development , with
land costs in leading global cities accounting for up to 60% of the cost of
building a home , according to Mr. Minscke . " Land markets tend to be
government controlled , either directly - for ex. Singapore - or as in London
and New York where the government is a significant land owner and the prime
actor in regulating land use .Some cities are taking steps to reduce housing
costs , and N.York mayor Bill de Blasio's plan to build 200,000 homes in the
next decade goes next to Germany's system of rent controls .
÷÷÷÷÷÷÷÷÷÷÷÷÷
Cities like London and N.York were victims of their own success. These
cities are under significant pressure because they are engine rooms for growth
.
Cities cannot survive unless they have adequate provision for key workers
like teachers , nurses , bus drivers and cleaners to live within commuting
distance of their work !!
