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Public housing
Public housing
from Wikipedia

Public housing in Bishan, Singapore. Singapore's public residential developments range from studio units to executive condominiums, contributing to a 90% home-ownership rate, one of the highest in the world.
Public-housing complex in Tseung Kwan O, Hong Kong. The Kin Ming Estate comprises ten housing blocks, providing housing for approximately 22,000 people. In 2020, 2,112,138 were identified residents of public housing,[1] which is 28% of the total population.
A local-authority 20-storey tower block in Cwmbran, South Wales.

Public housing, also known as social housing, is subsidized or affordable housing provided in buildings that are usually owned and managed by local government, central government, nonprofit organizations or a combination thereof. The details, terminology, definitions of poverty, and other criteria for allocation may vary within different contexts, but the right to rent such a home is generally rationed through some form of means-testing or through administrative measures of housing needs.[2] One can regard social housing as a potential remedy for housing inequality. Within the OECD, social housing represents an average of 7% of national housing stock (2020), ranging from ~34% in the Netherlands to less than 1% in Colombia.[3][4]

In the United States and Canada, public housing developments are classified as housing projects that are owned by a housing authority or a low-income (project-based voucher) property. PBV are a component of a public housing agency. PBVs, administered by state and local housing agencies, are distinct from Section 8 Project-Based Rental Assistance (PBRA), a program through which property owners' contract directly with the Department of Housing and Urban Development (HUD) to rent units to families with low incomes.[5]

Affordable housing goals can also be achieved through subsidies. Subsidized housing is owned and operated by private owners who receive subsidies in exchange for providing affordable housing. Owners may be individual landlords or for-profit or nonprofit corporations.[6]

History

[edit]
Boundary Street in 1890; three years later, the London County Council began slum clearance.

Social housing had existed sporadically prior to modern developments. The oldest still in use is the 16th-century Fuggerei in Augsburg, Bavaria.

The origins of modern municipal housing lie in the dramatic urban population increase caused by the Industrial Revolution of the 19th century. In the large cities of the period, many social commentators, such as Octavia Hill and Charles Booth reported on the squalor, sickness and immorality that arose. Henry Mayhew, visiting Bethnal Green, wrote in The Morning Chronicle:

... roads were unmade, often mere alleys, houses small and without foundations, subdivided and often around unpaved courts. An almost total lack of drainage and sewerage was made worse by the ponds formed by the excavation of brickearth. Pigs and cows in back yards, noxious trades like boiling tripe, melting tallow, or preparing cat's meat, and slaughter houses, dustheaps, and "lakes of putrefying night soil" added to the filth.[7]

Some philanthropists began to provide housing in tenement blocks, and some factory owners built entire villages for their workers, such as Saltaire in 1853 and Port Sunlight in 1888. It was in 1885, after the report from a royal commission in England, that the state first took an interest. This led to the Housing of the Working Classes Act of 1885, which empowered Local Government Boards to shut down unhealthy properties and encouraged them to improve the housing in their areas.

The City of London Corporation built tenements in the Farringdon Road in 1865.[8] The world's first large-scale housing project[9] was built in London to replace one of the capital's most notorious slums – the Old Nichol.[10] Nearly 6,000 individuals were crammed into the packed streets, where one child in four died before his or her first birthday. Arthur Morrison wrote the influential A Child of the Jago, an account of the life of a child in the slum, which sparked a public outcry. Construction of the Boundary Estate was begun in 1890 by the Metropolitan Board of Works and completed by the then-recently formed London County Council in 1900.[11]

The success of this project spurred many local councils to embark on similar construction schemes in the early 20th century. The Arts and Crafts movement and Ebenezer Howard's garden city ideas led to the leafy London County Council cottage estates such as firstly Totterdown Fields and later Wormholt and Old Oak. The First World War indirectly provided a new impetus, when the poor physical health and condition of many urban recruits to the British Army was noted with alarm. In 1916, 41% of conscripts were unfit to serve. This led to a campaign known as Homes fit for heroes and in 1919 the Government first compelled councils to provide housing, helping them to do so through the provision of subsidies, under the Housing Act 1919.[12] Public housing projects were tried out in some European countries and the United States in the 1930s, but only became widespread globally after the Second World War.

Africa

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South Africa

[edit]

South Africa has a significant amount of public housing, and the country's social democratic government, majority run by the African National Congress, continues to build more, in an effort to ensure that all residents have adequate housing.[13]

Constitutionally-enshrined right to housing

[edit]

The Constitution of South Africa recognizes the right to housing, and states that access to adequate housing is a basic human right.[14]

The Constitution further states that the Government of South Africa is obligated to take reasonable steps, in the context of its available resources, to progressively achieve this right. This includes, through reasonable legislative and other measures, the implementation of housing programs and policies.[14]

Current state of housing access

[edit]

Social housing in South Africa falls under the mandate of the Department of Human Settlements (DHS), which is headed by the government's Minister of Human Settlements,[15] and had (as of the 2022/2023 financial year) over 500 employees.[16] The Department had a 2024/2025 fiscal year budget of R33.6 billion.[13]

What constitutes adequate housing is outlined in the Housing Act 107 of 1997, the BNG 2004 policy, and the National Housing Code 2009 (NHC), which provide for the facilitation of a sustainable housing development process. The NHC specifies the minimum size of houses as 40 square meters of floor area with 2 bedrooms; a separate bathroom with a toilet, a shower and a hand basin; a combined living area and kitchen space with a wash basin; and an electrical installation, where electricity supply is available.[14]

The DHS' Master Spatial Plan (MSP) is aimed at achieving a creative balance between spatial equity, economic competitiveness, and environmental sustainability to overcome the legacy of apartheid. The MSP states that all spatial development programs should incorporate spatial justice (integration); spatial sustainability (e.g., location and access to employment opportunities); spatial resilience (e.g., mixed use, incremental development); spatial quality (e.g., diversity and choice); spatial efficiency (e.g., optimal use of limited resources); and good administration under the guidance of Spatial Planning and Land use Management Act (SPLUMA Act).[14]

Anyone in South Africa over the age of 21, with a household income not exceeding R3,500 per month, can apply for social housing, provided they do not already own a home under a separate scheme (such as a home loan from a bank). Only one government-provided home per applicant is allowable. Married persons, as well as single parents with dependents, can apply together. Applications can be submitted at the Housing Office of the resident's local municipality. Generally, homes received from the government may not be sold within the first 8 years of ownership.[14]

For qualifying poor or low-income households, the government of South Africa also provides subsidized waste management and sanitation services, as well as 6 kl of free water, and 50 kwh of free electricity, per household, per month.[17]

As of 2022, approximately 29.9% of South Africans resided in social housing.[17]

The country has made significant progress in the provision of housing. The number of official households doubled between 1996 and 2022. The number of formal dwellings increased from 65.1% to 88.5% over the same period.[17]

In the same period, the number of people living in an informal dwelling decreased from 16.2% to 8.1%, and the number of people living in traditional dwellings decreased from 18.3% to 3.1% - a marked improvement. Access to electricity at home also improved considerably, rising from 58.1% in 1996 to 94.7% in 2022. These data from Statistics South Africa (Stats SA), obtained from census research, show the positive results of the South African government's efforts towards housing access across the country.[17]

Historical provision of housing

[edit]

During the apartheid period in South Africa, spanning around 40 years, the national government at the time was run by the right-wing, conservative, Afrikaner nationalist National Party. The party intentionally only worked to ensure adequate housing for white people. As was the case in all facets of life, people of color were not afforded the protections that white people were, nor did they benefit in the same way from government funding.

This resulted in a severe lack of safe, quality housing for non-white residents in South Africa. That is an issue which persists into the present day, due to generational (hereditary) privilege, and those from previously disadvantaged communities still having to wait for adequate housing, as part of a backlog of applicants that South Africa's national, provincial, and municipal governments are continuously attending to.

Apartheid featured high poverty rates amongst black South Africans, due to racial segregation and discrimination, and this was (and still is) intrinsically connected to housing, in that adequate housing is known to provide a foundation for improving one's life through having additional security, becoming educated, and seeking employment.

The post-apartheid government has sought to build social housing with a focus on those living in poverty, and those with low incomes. This focus has been placed on building homes in urban areas, with higher levels of economic opportunity as compared to rural areas (Bantustans), where people of color were forcibly placed after being removed from existing housing, as part of racial segregation measures.[18]

The Reconstruction and Development Program (implemented by the Cabinet of South Africa's first President, Nelson Mandela), as well as the Breaking New Ground program, provided over 3.5 million new homes during the period 1995 through 2020, but they did not fully meet demand, and some houses were built away from urban areas.[19][20] The housing shortage was estimated to be 3.7 million units in 2021.[21] The Department of Human Settlements, which facilitates national housing development, has sought to transition from a housing-focused development model to a holistic view, including services.[22]

Americas

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Brazil

[edit]
Social housing in Eunápolis, Brazil.

Minha Casa Minha Vida ("My House, My Life"), the Brazilian federal government's social housing program, was launched in March 2009 with a budget of R$36 billion (US$18 billion) to build one million homes.[23] The second stage of the program, included within the government Growth Acceleration Program (PAC, Programa de Aceleração do Crescimento) was announced in March 2010.[24] This stage foresaw the construction of a further two million homes.

All funds for Minha Casa Minha Vida properties were provided by the Brazilian public bank, Caixa Econômica Federal.[25] The bank financed development and provided mortgages for qualifying families.

As of September 2018, 4.5 million homes were built and distributed to the population. The project has been criticized for its placement and quality of the houses.[26] Houses are built far from the city centre to reduce housing costs which consequently reduces access to the labor market; a study of randomly selected houses of the MCMV project in Rio de Janeiro showed a reduced likelihood of being formally employed in job-seekers but income was not affected in those who were already employed.[27]

In addition to addressing the housing deficit, Minha Casa Minha Vida sought to stimulate the economy by generating employment in the construction sector. According to the Brazilian Chamber of Construction Industry (CBIC), the program created millions of jobs, directly and indirectly, contributing to the country's economic growth during its initial phases. However, critics argue that the program's focus on mass production sometimes overlooked the importance of integrating new housing developments with adequate infrastructure, such as schools, healthcare facilities, and transportation networks, which are essential for fostering sustainable urban development.[28]

Canada

[edit]
Moss Park in Downtown Toronto.
Habitations Jeanne-Mance in Downtown Montreal.

In Canada, public housing is usually a block of purpose-built subsidized housing operated by a government agency, often simply referred to as community housing, with easier-to-manage townhouses. Many cities in Canada still maintain large high-rise clustered developments in working-class neighborhoods, a system that has fallen out of favour in both the United States and the United Kingdom. However, many public housing corporations still offer a variety of buildings and communities ranging from individual houses to townhouse communities and mid-rise and high-rise apartments in both working-class and middle-class neighborhoods that house a significant number of low-income Canadians.

Following the decentralisation of public housing to local municipalities, Social Housing Services Corporation (SHSC) was created in the Province of Ontario in 2002 to provide group services for social housing providers (public housing, non-profit housing and co-operative housing). It is a non-profit corporation which provides Ontario housing providers and service managers with bulk purchasing, insurance, investment and information services that add significant value to their operations.

Recently,[when?] there has been a move toward the integration of public housing with market housing and other uses. Revitalization plans for properties such as in the notorious Downtown Eastside of Vancouver, Regent Park, in Toronto, and Rochester Heights in Ottawa, aim to provide better accommodations for low-income residents, and connect them to the greater community. The aim of the reconstruction plans are often to better integrate it into the traditional grid of streets, improve leisure and cultural amenities. However, the residents of these communities often have had little effective input in the plans and have had mixed reactions to the construction.

In 2014, Vancouver, long considered one of the least affordable cities in the world,[29] changed the definition of social housing to mean rental housing in which a minimum of 30 percent of dwelling units are occupied by households that cannot pay market rents, due to lack of income.[30]

Mexico

[edit]
Multifamiliar Miguel Alemán.

At the end of the Second World War, enriched by US investments and an oil boom, Mexico had its first demographic boom, in which the primary destination for rural immigrants was Mexico City. Mario Pani Darqui, a famous architect at time, was charged to build its first large-scale public housing project. Built for the Dirección de Pensiones Civiles y Retiro (the National Pensions office, today ISSSTE), the Centro Urbano (or Multifamiliar) Presidente Alemán (1947–50) in the Colonia del Valle and the Centro Urbano (or Multifamiliar) Benito Juárez (1951–52) in the Colonia Roma, introduced formal ideas from Le Corbusier's Ville Radieuse into the urban fabric.

His later project, the Conjunto Urbano Tlatelolco Nonoalco built in 1960–65, was meant to develop one of the poorest parts of the city, Santiago Tlatelolco, which was becoming a slum. Unfortunately, after a while, instead of giving the residences to the previous residents of Tlatelolco, corruption took place and most of the dwellings were handed to state employees.

During the earthquake of 1985, both the Benito Juárez and Nonoalco-Tlaltelolco complexes suffered major damage, with some buildings collapsing. Today most of the Multifamiliar Benito Juárez has been demolished.

Mexico has had experience with housing projects since Porfirio Díaz's regime (1877–1880, 1884–1911). One of those still remains and is the Barrio of Loreto in San Ángel, Álvaro Obregón in Mexico City, that was a project for a paper factory workers.

Another notable public housing project is the Conjunto Habitacional Independencia, located near Tizapán neighborhood, on most of the land that once was the Matsumoto Hacienda. The project was developed during Adolfo López Mateos presidential period, started in 1959 and completed in 1960. The development included an integral design considering landscaping, and premises that could provide basic services to the residents: a clinic, a sports complex, theater, movie theater, a supermarket, a kindergarten, three elementary schools, among others. It functioned as public housing until 1982, when the houses and apartments were sold to the residents.

Puerto Rico

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Neighbourhoods in Puerto Rico are often divided into three types: barrio, urbanización (urbanisation) and residencial público (public housing).[31] An urbanización is a type of housing where land is developed into lots, often by a private developer, and where single-family homes are built.

More recently, non-single-family units, such as condominiums and townhouses are being built which also fall into this category.[31] (In Puerto Rico, a condominium is a housing unit located in a high-rise building. It is popularly called an apartamento (English: 'apartment'), whether or not its resident owns the unit or lives in it as a renter.)

Public housing, on the other hand, are housing units built with government funding, primarily through programs of the US Department of Housing and Urban Development (HUD) and the US Department of Agriculture (USDA).[32] These have traditionally been multi-family dwellings in housing complexes called a Barriada or a Caserío (and more recently a Residencial Publico), where all exterior grounds are shared areas.

Increasingly, however, public housing developments are being built that consist of other than the traditional multi-family dwellings with all exterior grounds consisting of shared outside area, for example, public housing may consist of single family garden apartments units. Finally, a home that is located in neither an urbanizacion nor of a public housing development is said to be located in (and to be a part of) a barrio.[31]

In Puerto Rico, a barrio also has a second and very different meaning official meaning: the geographical area into which a municipios is divided for official administrative purposes. In this sense, urbanizaciones as well as public housing developments (as well as one or several barrios in the popular sense) may be located in one of these 901 official geographic areas.[33]

United States

[edit]
The 20-story John F. Hylan Houses in the Bushwick section of Brooklyn, New York City.
The Ramona Gardens projects in Los Angeles, California.

In the nineteenth and early twentieth centuries, government involvement in housing for the poor was chiefly in the introduction of building standards. Atlanta, Georgia's Techwood Homes, dedicated in 1935, was the nation's first public housing project.[34] Most housing communities were developed from the 1930s onward and initial public housing was largely slum clearance, with the requirement insisted upon by private builders that for every unit of public housing constructed, a unit of private housing would be demolished.

This also eased concerns of the establishment by eliminating or altering neighborhoods commonly considered a source of disease, and reflected progressive-era sanitation initiatives. Moreover, public housing, along with the Federal Highway Program, demolished the older, substandard housing of communities of color across the United States.

However, the advent of makeshift tent communities during the Great Depression caused concern in the Administration. The Federal public housing program was created by the 1937 Act, in which operations were "sustained primarily by tenant rents."[35] As a result, public housing in its earliest decades was usually much more working-class and middle-class and white than it was by the 1970s. Many Americans associate large, multi-story towers with public housing, but early projects were actually low-rise, though Le Corbusier superblocks caught on before World War II.

A unique US public housing initiative was the development of subsidized middle-class housing during the late New Deal (1940–42) under the auspices of the Mutual Ownership Defense Housing Division of the Federal Works Agency under the direction of Colonel Lawrence Westbrook. These eight projects were purchased by the residents after the Second World War and as of 2009 seven of the projects continue to operate as mutual housing corporations owned by their residents. These projects are among the very few definitive success stories in the history of the US public housing effort.

Public housing was only built with the blessing of the local government, and projects were almost never built on suburban greenfields, but through regeneration of older neighborhoods. The destruction of tenements and eviction of their low-income residents consistently created problems in nearby neighborhoods with "soft" real estate markets.

Initiatives in housing policy were implemented in ways that perpetuated stigma against African Americans. Initially, public housing was intended to be built widespread, and as such be mixed-income, but lobbyists who did not want to see public housing decrease their housing values blocked such housing from going up[36]. These early NIMBY movements limited where public housing was concentrated: predominantly in low-income neighborhoods. With the introduction of suburbs and expansion of choices for the white working class, the demographics of public housing changed from more class and racially integrated to predominantly impoverished, single-parent, welfare, and people of color[37]. This led to stigmatization of public housing, through pushing the narrative that people living in public housing were "Welfare Queens", or otherwise living in a state of abject poverty and terrible conditions[37]. These demographic changes also decreased support for housing, leading to the government cutting funding for the program[38]. Because of funding cuts and mismanagement by public housing authorities, public housing started to reflect modern associated characteristics of "soul-crushing" buildings or "humanitarian disasters"—to which the 1993 HOPE VI project's response was demolition[37].

The federal Housing and Urban Development (HUD) department's 1993 HOPE VI program addressed concerns of distressed properties and blighted superblocks with revitalization and funding projects for the renewal of public housing to decrease its density and allow for tenants with mixed income levels.[39][40] The project paired together the demolition of public housing stock and private development, leading to the displacement of many residents.[41] One of the biggest components of this was the repealing of the "one-for-one" replacement rule, which said that for every unit of housing destroyed a new one must be built[42]. HOPE VI's reasoning for repealing this policy was that it was hindering the construction of new, mixed-income units: since the public housing buildings were so massive, those behind HOPE VI believed that trying to match the 'one-for-one' rule would make building new housing extremely difficult[42]. The long-term effect of this was that more housing was demolished than built, and many people were displaced without being guaranteed a spot in the new housing that would get built. This led to the widespread displacement and reshuffling of public house residents: namely, low-income, Black, single-parent families[37]. Narratives that public housing projects were full of crime, drugs, and poverty were used to further justify demolition and destruction of public housing. Such associations between crime, surveillance and policing, and the projects increased in 1996.

Projects continue to have a reputation for violence, drug use, and prostitution, especially in New Orleans, Washington, D.C. Chicago and Detroit, leading to the passage of a 1996 federal "one strike you're out" law, enabling the eviction of tenants convicted of crimes, especially drug-related, or merely as a result of being tried for some crimes.[43] Specifically, the Clinton era established, through HUD, the Public Housing Drug Elimination Program, which led to the cracking down of public housing, leading to more policing and surveillance for low-income people of color[44].

Turn to subsidized housing

[edit]

In the 60s and 70s, the popularization of neoliberalism caused a turn away from public sector solutions towards private or public-private solutions. This, in conjunction with the narrative of public housing being obsolete, led to both the turn away from public housing and towards subsidized housing solutions.

Houses, apartments or other residential units are usually subsidized on a rent-geared-to-income (RGI) basis. Some communities have now embraced a mixed income, with both assisted and market rents, when allocating homes as they become available.

A significant change in the program took place in 1969, with the passage of the Brooke Amendment. Rents now became set at 25% of a tenant's income with the result that the program began serving the "poorest tenants."

Other attempts to solve these problems include the 1974[45] Section 8 Housing Program, which encourages the private sector to construct affordable homes, and subsidized public housing. This assistance can be "project-based", subsidizing properties, or "tenant-based", which provides tenants with a voucher, accepted by some landlords. This policy option represented a turn away from the public-sector policy of public housing, instead turning towards the private market to address housing needs. The program, in conjunction with HOPE VI, was intended to create income-integrated communities, by giving residents the choice of where to move[42]. However, the housing voucher program has historically had long wait times and limited choice on where one can actually move[46]. Additionally, it was found that many people of color did not want to move away from their families, communities, and systems of support, as well as experiencing stigma and difficulties with landlords, safety, or expenses[46]. This leads to the program doing little to actually create a more racially-integrated city demographics, mostly reproducing inequality while simultaneously not having enough valid housing units for the long list of applicants[47].

Asia

[edit]

China

[edit]
An "Old Public House" in Pengpu Xincun, Shanghai.
A low-rent house in Ningnan County, Sichuan.

The public-owned housing system was established when the Chinese Communist Party started a planned economy in the 1950s as part of its Great Leap Forward. The system was funded by the central government's budget and were administered and distributed by state-owned enterprises. The occupants of the public housing were usually the employees of the enterprises and their family, who were subject to pay rent at a very low price. The size and the type of room the households received were dependent on their job title or administrative level. The central government found it difficult to upkeep the public housing due to the low rent it received; the distribution policy that was intended to be "equalitarianism" was actually corrupt.[48]

The Chinese government commercialized the housing market after the economic reform started in 1978 by Deng Xiaoping. The public houses that were constructed before that the economic reforms were categorized as "Old Public Houses" (Chinese: 老公房). "Old Public Houses" were, in principle, not supposed to be privately sold, but the household could sell it after purchasing the ownership of the building (not the property), and such transactions were subject to be review by local housing authorities and the State-owned Assets Supervision and Administration Commission.[49] However, an informal filing system and unclear policies resulted in problems of corruption and family dispute.[50][51]

The concept of the low-cost rental housing can be traced to a 1998 policy statement,[clarification needed] but did not truly take off until 2006 due to limited funding and administrative problems. The provision of more affordable housing is one of the key components of China's Twelfth Five-year Plan, which targets the construction of 36 million homes by 2015. That program's costs will be split between the private and public sector and are estimated at five trillion yuan by China International Capital Corporation.[52]

Hong Kong

[edit]
Clague Garden Estate, a public housing estate in Tsuen Wan, Hong Kong

In Hong Kong, public housing is one of the major housing policies of the government. Nearly half of Hong Kong's 7.5 million population lives in public housing.[53] The two main public housing providers are the Housing Authority and the Housing Society.

The most common types of public housing in Hong Kong are public rental housing (PRH) and subsidised sale flats produced under the Home Ownership Scheme (HOS). In 2016, approximately 31 per cent of Hong Kong households lived in PRH flats while 15 per cent resided in subsidised sale flats (of all types).[54]

The origin of large-scale public housing in Hong Kong can be traced to the resettlement programme launched by the Hong Kong government in the 1950s in response to the increasing prevalence of squatter settlements, which emerged as a result of a great influx of refugees following the Communist revolution in China. The squatter villages were considered unsafe as they were susceptible to disastrous fires, including a 1953 blaze in Shek Kip Mei that rendered over 50,000 people homeless overnight.[55]

Large-scale resettlement estates were built throughout the 1950s and 1960s. In 1973, the government of Sir Murray MacLehose launched the Ten-Year Housing Programme, which aimed to provide the entire population with "satisfactory housing" within a decade. The government also launched the Home Ownership Scheme (HOS) in 1976 to enable lower-income households to purchase flats.[56]

Many public housing estates were built as part of new town development programmes. During the 1980s, most of the earliest resettlement estates (from the 1950s and early 1960s) were also rebuilt to modern standards. Public housing remains a key concern of the Hong Kong Government, which plans to construct some 330,000 units between 2022 and 2032.[57]

India

[edit]

86.6% of the Indian population lives in own houses. There are various public housing projects by both state and central governments in small scale.

Kerala has started an initiative of public housing called Life which is a part of their welfare mission, Nava Kerala Mission which aims to be one of the biggest public housing initiatives undertaken on a state level in India is schemed to build houses for an estimated 4.32 lakh (432,000) families in Kerala who do not own any land or houses. The handover of 3,23,894 houses were completed till date under the mission.[58]

Indonesia

[edit]
Apartment buildings in Indonesia

Indonesia has undertaken One Million Houses program for low-income people. The program has been implementing since 2015 to achieve an ambitious target of building 10 million houses. The proportion of the housing is 70 percent for low-income people and 30 percent for non-low-income people. This program is a joint movement between the Central Government, regional governments, real estate developers and the community. The program is targeted to reach one million housing units annually.[59][60] In 2015, about 700,000 homes were built, increasing to approximately 800,000 in 2016 and around 904,000 by the end of 2017.[61][62]

Iran

[edit]

Iranian Minister of Road and Urban Development promised to deliver 4 millions apartment unit and flats and failed its aim.[63][64][65][66][67][68][excessive citations] Registration scheme is closed for only males aged 23–45 without prior land ownership history.[69]

Japan

[edit]
Public housing in Japan

Danchi (団地, literally "group land") is the Japanese word for a large cluster of apartment buildings or houses of a particular style and design, typically built as public housing by government authorities.

The Japan Housing Corporation (JHC), now known as the Urban Renaissance Agency (UR), was founded in 1955. During the 1950s, 1960s, and 1970s, the JHC built many danchi in suburban areas to offset the increasing housing demand during the post-World War II economic boom.[70] It introduced the Japanese salaryman to a life around the nuclear family in contrast with the multi-generation homes before the war.[71]

The rent payment for a danchi is much cheaper than that of an apartment or a mortgage, but for a public danchi the prospective tenant must usually participate in a lottery to be assigned an open apartment. Residents in UR danchi do not have to pay key money or contract renewal fees, making the residences cheaper than comparable housing even if the monthly rents are equivalent.[72]

Singapore

[edit]
The Pinnacle@Duxton is one of Singapore's most well known public housing projects for its design.

In Singapore, the public housing program, particularly the planning and development of new public housing and the allocation of rental units and resale of existing ownership units, is managed by the Housing and Development Board. Day-to-day management of public housing communities has been delegated to Town Councils headed by the local members of parliament.

In 2018, 78.7% of Singaporean residents live in public residential developments, ranging from studio units to executive condominiums provided by the HDB, a major factor in Singapore having one of the highest home-ownership rates – over 90% of the resident population – in the world.[73]

Taiwan

[edit]
Minglun Social housing located in Taipei.
Zhonghe Anbang Social Housing located in Zhonghe District, New Taipei City that houses 630 housing units and was completed in 2023.
Social housing in Taiwan.

After Kuomintang's retreat to Taiwan, Taiwan experienced a population surge and, beginning in the 1980s, faced issues with ageing military dependents' village. To address these housing needs, the government constructed various types of public housing projects across the country. Starting in 1976, approximately 390,000 housing units were built, providing accommodation for around 1.58 million people.[74] These projects were largely managed by specialised local government agencies, such as the National Housing Bureau.[75] Taiwan’s public housing is generally categorized into three types:

  • Rebuilt Military-Dependent Villages: These communities were primarily named with the suffix "New Village" (新村) (e.g., Matsu New Village) and aimed at replacing deteriorating military housing.
  • Housing for Civil Servants and their Families: These communities served public employees and their families.
  • Public Housing for Private Purchase: A limited number of units were made available for public purchase by private citizens.

In the late 1990s, due to an oversupply of housing units in the private market, the government decided to halt large-scale public housing projects, except for the continued redevelopment of military-dependent villages. This shift aimed to prevent issues like collusion between officials and developers, as well as competition with private developers.[76]

Since the 2010s, with real estate speculation driving urban housing prices up, the government has focused on new types of public housing initiatives. These include affordable housing units for sale through public-private partnerships and social housing projects intended for rental, such as Taiwan’s "Social Housing" (社會住宅) initiative. However, there have been recurring concerns about potential collusion between government officials and developers in these new projects.[77]

Vietnam

[edit]

From the 1960s to the 1980s, Vietnam built Khu tập thể (KTT), socialist-modeled apartment blocks on the periphery of cities for civil servants, state-owned companies' workers, and military personnel.[78] Market reforms in the late 1980s resulted in the partial privatization of the KTT, which were sold to low- and low-middle income populations.[78] The KTT have since become dilapidated, due to a lack of municipal funding for repairs and maintenance, and been the target of demolition, displacement, and redevelopment for high-income populations.[78]

In the 2010s, Vietnam has experienced a surge in property prices, with the affordable housing stock shrinking by 7% of the entire housing stock from 2014 to 2016, and apartment prices rising by 90% between 2017 and 2020.[79][80] Developers are not interested in social housing projects since they are not profitable, even amidst rising demand from workers, so the Ministry of Construction requires funding to build 294,600 social housing units in the 2021 – 2025 period.[81]

Europe

[edit]

European Union

[edit]
Brand new panel buildings in Warsaw, communist Poland, 1977

According to a 2018 discussion paper of the European Commission, in 2015, 11.3% of the EU-population lived in households that spent 40% or more of their disposable income on housing.[82]

In January 2019, the former European Commission President, Romano Prodi, declared that public investment in social infrastructure during the euro area crisis reached a 20-year low, with investment in social infrastructure in the EU estimated at €170 billion per year and the minimum infrastructure investment gap in these sectors estimated at €100 to €150 billion, representing a total gap of at least €1.5 trillion between 2018 and 2030.[83]

Housing projects in Europe can be found in urban areas, as well as in suburban areas.

The EU was moving to support more affordable, energy-efficient and accessible housing with the financial contribution of the CEB and of the EIB through its European Fund for Strategic Investments. Public funding was planned to be directed primarily on affordable housing and secondly in the education and lifelong learning, health and long-term care sectors.[83]

In Europe, there is a significant shortage of investment in social housing and a pressing need to renovate existing units.[when?] Annual investment in housing is predicted at €57 billion for new building and energy-efficiency modifications. The projections do not include the refugee situation caused by the Russian invasion of Ukraine.[84][85][86]

Austria

[edit]
Karl Marx-Hof, a Gemeindebau constructed during the Red Vienna period in Döbling, Vienna (2009).

Public housing was an important issue right from the foundation of the Republic of German-Austria in 1918. The population was faced with a great deal of uncertainty particularly as regards food and fuel. This led to a significant number of less affluent people to move to the periphery of towns, often building makeshift homes to be closer to where they could grow food. They were called Siedler ('settlers'). As the political situation became stabilised with foundation of the First Austrian Republic in September 1919, the Siedler movement started creating formal organizations like the Austrian Association for Settlements and Small Gardens.[87] The electoral victory of the Social Democratic Party of Austria in the elections for the Viennese Gemeinderat (city parliament) gave rise to Red Vienna. Part of their programme was the provision of decent homes for the Viennese working class who made up the core of their supporters. Hence the German word Gemeindebau (plural: Gemeindebauten) for "municipality building". In Austria, it refers to residential buildings erected by a municipality, usually to provide public housing. These have been an important part of the architecture and culture of Vienna since the 1920s.

Belgium

[edit]

Social housing is a responsibility of the regions in Belgium. The regions do not directly own the houses, semi-private social housing corporations do. The government regulates and mostly finances these corporations. Below a certain income limit, people are eligible for social housing. Because there is a major shortage of social housing in Belgium, other priority conditions are often imposed, such as having children to care for.[88] Social housing accounts for approximately 6.5% of the Belgian housing market. This is much lower than neighbouring countries such as the Netherlands and France. As of 2018, Flanders, Wallonia and Brussels are responsible for 280,687 social houses, 212,794 people are on the waiting list. For the people on the waiting list there are other possibilities such as subsidies and sociale rental agencies in Flanders.[89]

Denmark

[edit]

In Denmark, public housing is called alment boligbyggeri and is owned and administered by approximately 700 self-governing, democratic and non-profit organizations by and for the tenants themselves. Many of the public housing organizations in Denmark are rooted in the early history of the labor unions and currently forms about 20% of the total housing stock with about 7,500 departments countrywide. A membership of a housing organization is usually required to obtain a rental and they are granted with regard to length of membership.[90][91]

Although the buildings are owned and administered by self-governing and economically independent organizations, the State of Denmark is strongly regulating public housing in the country. By law, the municipalities have access to 25% of the rentals, usually reserving them for the poor, the unemployed, the disabled or mentally ill or any other group dependent on social benefits from the municipality. Over the years, these regulations have created many 'vulnerable residential areas' within the country. Danish public housing has never had any income restrictions, but in recent years new state regulations has made it mandatory for several of them to favor fully employed renters and disfavor unemployed or part-time employed people. This is a relatively new effort by the state to counter the ghettoisation, which is now an officially recognized problem countrywide.[90][91]

As in Sweden, state and municipal policies carried out throughout the first decade of the 21st century, has led to an increased privatization of public housing. In many areas, residents have been offered to buy their own flats, thereby effectively changing the status of the property. The privatization of public housing was initiated as part of an ideological program by the right wing governments of the early 21st century and was launched a few years after the closure of the former Ministry of Housing Affairs in 2001.[92] The former ministry was re-opened as Ministry of Housing, Urban and Rural Affairs in October 2011, when a new coalition government led by social-democrats was formed.[93][94]

Finland

[edit]

The right to housing is guaranteed in the Finnish constitution, and public housing in Finland is largely funded through loans which are subsidized and guaranteed by the government. Roughly one third of Finland's housing stock has been built this way.[95] Rents for public housing apartments in Finland are typically significantly lower than market-rate housing. Eligibility to live in public housing in Finland is based on a need-based evaluation, and those with very low incomes and those who are experiencing homelessness are given priority.[96]

A public housing apartment building at the Sandelsinkatu street in Siilinjärvi, Finland

The earliest public housing project in Finland was in Helsinki. In 1909, four wooden houses designed by the architect A. Nyberg were built on Kirstinkuja (formerly Kristiinankatu) for the city's workers. The residents were mainly working-class families with several children. The apartments had an average of five people per room, sometimes up to eight. The tiny apartments were equipped with running water, a pantry and an attic cupboard. Every apartment had its own toilet in the cellar. Electric lighting was installed in 1918.

The homes and lives of worker families in Helsinki from 1909 to 1985 are presented in a museum near the Linnanmäki amusement park.

In 2008, Helsinki launched its Housing First policy, with the goal of ending homelessness by prioritizing unconditional housing.[97] With municipal, state, and NGO support, and coupled with health and medical services, the program reduced homelessness by 35% between 2008 and 2019.[97]

France

[edit]
Public housing of the rue Jean Fautrier in the 13th arrondissement of Paris.

After World War II, the population increased at a rate previously unknown, the rural exodus increased, while war damage had reduced the number of houses in many cities. Rental prices dramatically rose, and the government made a law in 1948 to block them, effectively ending the economic benefits of housing investment. Rents were gradually deregulated until debate in the 1980s led to the current rental law of 1989 theoretically balancing landlord and tenant relations. However, there was a major homelessness crisis in the winter of 1953–4 and the necessary laws were gradually mobilized producing high levels of construction almost continuously from the 1960s. Social landlords were a major source of expertise as well as construction actors with links to national and local bodies.[98] The construction industry was at the time inadequate so political support was needed.

It is incorrect to refer to French social housing as public housing. The origins of French social housing lie in the private sector, with the first State aid provided to limited-profit companies by the loi Siegfried in 1894. The originally socialist idea was promoted by some French employers in the 2nd half of the 19th century. Public housing companies followed before World War I.[98] There are still different social housing movements, public, private and some cooperative. Social landlord organizations all have similar regulation and similar access to government loans but there are significant differences.[99]

The government launched a series of major construction plans, including the creation of new towns (villes nouvelles) and new suburbs with HLM (Habitation à Loyer Modéré, "low-rent housing"). The state had the funds and the legal means to acquire the land and could provide some advantages to the companies that then built its huge housing complexes of hundreds of apartments. Quality was also effectively regulated, resulting in decent or even top quality housing for the standard of the 1950s and 1960s. The construction of HLMs were subject to much political debate. Much smaller developments are now the norm. This housing is now generally referred to as l'habitat social, a slightly wider sphere than just housing.

France still retains this system, a recent law making it an obligation for every town to have at least 20% HLM. Nowadays HLM represents roughly half of the rental market (46% in 2006).[100] Social housing is not all for disadvantaged people who are just one of the target groups. Part of the funding can be provided by employer-employee groups to provide housing for local employees. The 20% target can include intermediate housing for better off groups, although its object is to produce social mix.[101] Gentrification and the very basis of social housing allocation are divisive issues as well as the extent of local control of housing.[102] This housing has always been a multi-actor activity and recent local government reorganization continues to change the political landscape.

While they succeeded in giving lower-income families a place to live in the drive to provide popular housing, this system also led to the creation of suburban ghettos, with a problem of disrepair. There has been a long-term problem of gradual impoverishment of social tenants[103] There, deprived strata of the population, mostly of immigrant origin and suffering massive under-employment, might in the past have been left to simmer away from the more affluent urban centres, sometimes becoming rife with social tensions and violence. This affects a minority of social housing but has a high profile and still produces serious tension.

Tackling this problem at its roots is all but simple, and social mix policies can break up populations seen as difficult by redevelopment. This has not had the hoped for results. It has also been sought to resolve the problem of access to the system by disadvantaged people by a new system where certain groups can apply to court to be housed if refused, the "right to housing". This tends to intensify the controversy over social housing allocation, who should be housed.[104] The French tradition of 'universal' social housing allocation – housing for everyone is called into question by EU competition law restricting subsidy except for the disadvantaged. In any event, the system is certainly effective in producing construction, although not with the excesses seen in the recent credit crunch elsewhere.[citation needed]

According to a study by the Banque des Territoires in 2025, building new or renovated social housing seems impossible given the budgetary equation in France.[105]

Germany

[edit]

Between 1925 and 1930, Germany was the site of innovative and extensive municipal public housing projects, mostly in Berlin, Hamburg, Cologne and Frankfurt. These housing estates (Siedlungen), were made necessary by the dreadful living conditions of pre-war urban tenements. The 1919 Weimar Constitution in Article 155 stated that the state would "promote the object of assuring to every German a healthful habitation", but few homes were built until the economy stabilised in 1925.[citation needed]

The new German housing estates were low-rise, no more than five stories, and in suburban settings. Residents were provided access to light, air, and sun. The size, shape, orientation and architectural style of Germany's public housing were informed by the recent experience of the Viennese, the Dutch, the anti-urban Garden City Movement in Britain, the new industrialized mass-production and pre-fabrication building techniques, the novel use of steel and glass, and by the progressive-liberal policies of the Social Democrats.[citation needed]

In 1930 in the industrial city of Dessau, the Laubenganghäuser ('Houses with Balcony Access') were designed by Bauhaus director Hannes Meyer for a housing cooperative that wanted apartments it could let for no more than a quarter of the occupant's income. Working on a tight budget inspired money and space saving innovations, such as using balcony walkways for access to the apartments rather than having internal corridors and clever use of the internal space in the 47 m2 (510 sq ft) apartments.[106][107]

Bruno Taut, Uncle Tom's Cabin Estate, Wilskistrasse, Berlin.

Architects Martin Wagner, Bruno Taut and others built the Berlin Modernism Housing Estates, now a World Heritage Site, consisting of thousands of homes built in and around Berlin, including the Horseshoe Estate (named for its shape), and Uncle Tom's Cabin estate (named after a local restaurant).[108] In Frankfurt the architect Ernst May lead the New Frankfurt public housing project, in which over 12,000 apartments were built 1925–1930. May ran his own sizable research facility to investigate, for instance, air-flow in various floorplan configurations, construction techniques, etc. The Austrian architect Margarete Schütte-Lihotzky applied the principles of Taylorism to the kitchen workspace and developed the Frankfurt kitchen while working for Ernst May.[109]

Berlin-Marzahn, the largest East German Neubaugebiet ("New development area"), 1987.

Beyond technical research, May also published two magazines and embarked on a significant public-relations project, with films and classes and public exhibitions, to make Neues Bauen acceptable to the public. In the late 1920s, the principles of equal access to Licht, Luft und Sonne ('light, air and sun') and the social effects of a state-guaranteed Existenzminimum ("minimum subsistence level") became a matter of lively popular debate all over Germany. One indirect result of this publicity was the American housing movement: a young Catherine Bauer attended one of May's conferences in 1930, and wrote her influential book Modern Housing (1934) based on research done in Frankfurt and with Dutch architect JJP Oud.[110]

Increasing pressure from the rising Nazis brought this era to an end in 1933. A majority of the German public housing experts had social democrat or communist sympathies and were forced out of the country.[citation needed]

In East Germany, the communist administration built monolithic Plattenbau apartment blocks and estates. Most new residential buildings from the 1960s onward were built in this style, as it was a quick and relatively cheap way to address the country's severe housing shortage, which had been caused by wartime bombing raids and the large influx of German refugees from further east.[citation needed]

Hungary

[edit]
Panelház in Budapest-Kispest.

Panelház (short form: panel) is the name of a type of block of flats (panel buildings) in Hungary. It was the main housing type built in the Socialist era. From 1959 to 1990 788,000 panel flats were built in Hungary. About 2 million people, about one fifth of the country's total population, live in these flats. The Hungarian government and local municipalities began a renovation program during the 2000s. In the program they have insulated these buildings, replaced the old doors and windows with multi-layer thermo glass, renewed the heating system and colored the buildings in a more pleasant way.[111]

Ireland

[edit]

In Ireland, public housing and halting sites (sites used by semi-nomadic Traveller communities) have been built by local authorities and are known as Local Authority Accommodation. Dublin Corporation and the former Dublin County Council provided the lion's share of Irish local authority housing, with County Longford having the largest ratio of local authority to private housing in the state.

Large-scale social housing was erected in the 1930s and 1960s, with both cases following slum clearance.[112] Critics argue that the National Building Agency focused too much on housing delivery, and failed to deliver retail and other services.[112]

The government has promoted tenant purchase on favourable terms, and many former social housing areas are now completely or almost completely privately owned. Housing associations, or independent, nonprofit charities, now play a significant role in rental social housing provision.[113] As the Irish state's ability to borrow is diminished government policy favours an increased role for private financing of housing associations instead of capital grants for local authorities. Ireland currently faces a severe shortage of social and council housing, and is experiencing a housing and homelessness crisis.[114]

Netherlands

[edit]

In the Netherlands, the rent for the cheaper rental homes is kept low through governmental oversight and regulation. These types of homes are known as sociale huurwoningen.

In practice this is accomplished by non-profit private housing foundations or associations (toegelaten instellingen). Due to frequent mergers the number of these organizations dropped to around 430 by 2009. They manage 2.4 million dwellings. The majority of low-rent apartments in the Netherlands are owned by such organisations. Since the policy changed in 1995 the social housing organizations have become financially independent, focusing on their role as social entrepreneurs.[115] In most Dutch municipalities there came to exist a certain minimum capacity of social housing throughout the last decades. In many cities such as Amsterdam, The Hague, Rotterdam and Utrecht the percentage of social housing approaches or even passes 50 percent. The public (financial) supervision is done by the central fund for housing (Centraal Fonds Volkshuisvesting).[115]

The Dutch housing policy is based on a concept of universal access to affordable housing for all and the prevention of segregation. As of 2020, the Dutch government is attempting to build 10,000 housing units for the homeless, by 2022.[116] There is a Homeownership Guarantee Fund to support the National Mortgage Guarantee, which provides access to finance and purchase owner-occupied housing.[117]

Romania

[edit]
Government built housing in Bucharest, Romania.

The skyline of many Romanian cities became dominated by standardized apartment blocks under the former communist government's policy of tower bloc construction. Beginning in 1974, systematization consisted largely of the demolition and reconstruction of existing villages, towns, and cities, in whole or in part, with the stated goal of turning Romania into a "multilaterally developed socialist society". In 2012, 2.7 million flats date from the communist period, accounting for 37% of total housing in Romania and for about 70% in cities and towns. Subsequent to post-communist privatization, the homeownership rate in this form of housing reached of 99.9%.[118] The new Home Owner Associations (HOAs) were challenged internally by the cumulative effect of defaulting contributions, lack of affordability and the established practice of casual resident service in HOAs, which often triggered mismanagement. On the other hand, HOAs were challenged from outside by non-effective mechanisms to address their internal problems, such as non-existent fast court procedures against defaulting, poor financial assistance to socially disadvantaged households and a private sector unprepared to take on condominium management.[119]

Spain

[edit]
Public housing, winner of an environmental design award, in El Astillero, Cantabria, Spain.
Public housing in La Coruña, Galicia (Spain).

Spaniards' reluctance to home rental, and government spending cuts in the 1980s, reduced rented public housing in Spain to a minimum. Rented public houses were relatively common in the Franco era (1939–75). With the advent of democracy and the 1978 Constitution, the right to housing became guaranteed, and the management of social housing depended mostly on the autonomous regions.[120] This resulted in a wide variety of laws, which make the issue highly dependent on the region.

In spite of this, a scheme for viviendas de protección oficial (VPO) has been widely used, consisting of local councils allowing for building contractors and developers to build in public sites or with public loans on condition that a certain percentage of apartments remain subsidized and under control of the local authorities. This is known as VPO de promoción privada ('privately developed'), as opposed to the VPO de promoción pública ('publicly developed'), in which the whole property is owned and managed by a government authority. Publicly developed housing is made almost exclusively for owner-occupation, not rent, and made up 11% of the housing stock in 2010.[120]

A new plan (Plan estatal español de vivienda y rehabilitación para el período 2009–2012) was put forward by the Rodríguez Zapatero government, aiming to make near a million homes available for public housing, relying both on new construction and refurbishment of unused houses.

Major parts of Spanish cities have been expanded [citation needed] in the last 20 years with projects heavily dependent on public and collective housing projects, which has stressed its importance inside the main architecture schools, that have answered the challenge with the development of several specialized courses and formation plans, such as the Madrid UPM – ETH Zurich combined MCH Master in Collective Housing.[121]

Sweden

[edit]
Tower block buildings in Rosengård, Malmö

Swedish public housing, handled by allmännyttiga bostadsföretag (public-good housing companies), consists mainly apartments owned by the local council. Unlike many other countries, Swedish public housing has never had any income restrictions. Instead, for large parts of the period between 1920 and 1990 (for instance, during the era of Million Programme), public housing companies such as Svenska Bostäder were the major operators in housing projects as well as in projects aiming to acquire old and worn down buildings. Although not carrying out housebuilding nor acquisition projects in recent times, the policies lead to a ubiquitous presence of publicly owned buildings throughout the cities of Sweden, including attractive urban areas, with a rather wide range of income among the tenants.

New regulations, implemented in the first decade of the 21st century, have enabled tenants in public housing to buy their buildings, which has led to a significant loss of public housing in attractive urban areas.

Slovakia and Czechia

[edit]
Sídlisko III in Prešov, Slovakia.

Forms of housing projects may vary in Slovakia. In the former Czechoslovakia (now Czech Republic and Slovakia) during the communist era, a construction of large housing estates (Slovak: sídlisko, Czech: sídliště) was an important part of building plans in the former Czechoslovakia. The government wanted to provide large quantities of fast and affordable housing and to slash costs by employing uniform designs over the whole country. They also sought to foster a "collectivist nature" in people. People living in these housing projects can either usually own their apartments or rent them, usually through a private landlord. There's usually a mix of social classes in these housing projects.[122]

United Kingdom

[edit]
A variety of social housing in Salford, Greater Manchester, England.
Park Hill in Sheffield, Yorkshire, England.
A local-authority 20-storey tower block in Cwmbran, South Wales.

In the United Kingdom public housing is often referred to by the British public as "council housing" and "council estates", based on the historical role of district and borough councils in running public housing. Mass council house building began in about 1920 in order to replace older and dilapidated properties.[12] This followed the 1919 'Addison' Act and the provision of central state subsidies; some local authority or municipal housing was provided before 1914.[123]

Housing was a major policy area under Wilson's Labour government, 1964 to 1970, with an accelerated pace of new building, as there was still a great deal of unfit housing needing replacement. Tower blocks, first built in the 1950s, featured prominently in this era. The proportion of council housing rose from 42% to 50% of the nation's housing total,[124] while the number of council homes built increased steadily, from 119,000 in 1964 to 133,000 in 1965 and to 142,000 in 1966.[citation needed]

Allowing for demolitions, 1.3 million new homes were built between 1965 and 1970.[125] To encourage home ownership, the government introduced the Option Mortgage Scheme (1968), which made low-income house buyers eligible for subsidies (equivalent to tax relief on mortgage interest payments).[126] This scheme had the effect of reducing housing costs for buyers on low incomes.[127]

Since the 1970s, non-profit housing associations have been operating an increasing share of social housing properties in the United Kingdom. From 1996 they have also been known as registered social landlords (RSLs), and public housing has been referred to as "social housing" to encompass both councils and RSLs. Despite being non-profit based, RSLs generally charge higher rents than councils. However, the Westminster government introduced a "rent re-structuring" policy for housing associations in England in 2002, which aimed to bring council and RSL rents into line in England by 2012.[128] Local planning departments may require private-sector developers to offer "affordable housing" as a condition of planning permission (section 106 agreement). This accounts for another £700m of government funding each year for tenants in part of the United Kingdom. As of 2012, housing associations are now also referred to as "private registered providers of social housing" (PRPs).[129]

1970s council housing in Haringey, North London.

Local authorities have been discouraged from building council housing since 1979 following the election of Conservative leader Margaret Thatcher as prime minister. The Parker Morris standard was abolished for those that were built, resulting in smaller room sizes and fewer facilities. The Right to Buy was introduced, resulting in the move of some of the best stock from public tenanted to private owner occupation.[citation needed]

Since the year 2000, "choice-based lettings" (CBL)[130] have been introduced to help ensure social housing was occupied speedily as tenants moved. This can still favour the local over the non-local prospective tenant. In a number of local authority areas, due to the shortage of council housing, three out of four properties may be designated for priority cases (those living in poor overcrowded conditions, with medical or welfare needs, or needing family support) or homeless applicants in order to meet the councils' legal obligations to rehouse people in need. The percentage of properties set aside for vulnerable groups will vary dependent on the demand for council housing in the area. All local authorities have a Housing Strategy to ensure that council houses are let fairly and fulfil the council's legal obligations; deal with people in need; and contribute to sustainability of housing estates, neighbourhood regeneration, and social inclusion.[131]

The 1997–2010 Labour government wished to move council housing away from local authority management. At first, this was through large-scale voluntary transfers (LSVT) of stock from councils to housing associations (HAs). Not all council property could be transferred, as in some local authorities, their housing stock was in poor condition and had a capital value less than the remaining debts from construction costs—in effect, the council stock was in negative equity.[132] In some local authority areas, the tenants rejected the transfer option.[133]

The Labour government introduced a "third way": the arms-length management organisation (ALMO), where the housing stock stays with the local authority but is managed by a not-for-profit organisation at arm's length from the local authority. It also introduced the Decent Homes programme, a capital fund to bring social housing up to a modern physical standard. To use this fund, the manager, whether ALMO or HA, had to achieve a 2 or 3 star rating from its inspection by the Audit Commission.[134] This was intended to drive up management standards. Council landlords cannot access this funding, another incentive to transfer management of council housing to an ALMO or HA.

Governments since the early 1990s have also encouraged "mixed tenure" in regeneration areas and on "new-build" housing estates, offering a range of ownership and rental options, with a view to engineering social harmony through including "social housing" and "affordable housing" options. A recent research report[135] has argued that the evidence base for tenure mixing remains thin. Social housing occupants may be stigmatised and forced to use a poor door that is separate and less convenient than the door the unsubsidised occupants use and social housing may be less desirably situated.[136]

After the adoption of austerity policies in 2010 the traditional "safety net" model was maintained by the devolved administrations like the Scottish and Welsh Parliaments and the Northern Ireland Assembly.[137]

Most UK social housing tenants have the right to swap homes with another tenant even if their landlords are different. This is called a "mutual exchange".[138] As of 2017, in England, local authorities can destinate homeless households in local tenancies, whereas in Scotland social housing remained the first chosen policy.[139] According to the Museum of Homelessness, in 2020 the UK recorded at least 976 deaths among homeless people.[140] In 2019 England and Wales estimated 778 deaths with an increase of 7.2% on the previous year.[141]

Former Soviet Union

[edit]
12-story residential buildings of late USSR, Moscow, Russia
Refurbished 5-story Khrushchyovka, winter in Tallinn, Estonia

In the Soviet Union, most of the houses built after World War II were usually 3–5 stories high, with small apartments. In these boroughs, the goal was saving space and creating as many apartments as possible. Construction starting in the 1970s favored 9- and 16-story concrete panel municipal housing in major cities, 7–12 stories in smaller urban areas. These housing projects are still used in some countries, especially in countries in central and eastern Europe, and most of them are slowly being renovated.

Oceania

[edit]

Australia

[edit]
Public housing high-rise in the Inner-City Sydney Sydney suburb of Waterloo, two of 11 such towers in three different estates spread across the suburbs of Waterloo, Redfern and Surry Hills

Public housing in Australia, also referred to as "housing commission", is managed by the states, with funding provided by both the state and federal governments. Policies vary by state, but generally, eligibility is based on personal or household income, asset limits and residency requirements. The allocation of public housing is typically done through a priority system where the applicants in the greatest need are housed first.

There are over 300,000 public housing dwellings in Australia, consisting of low-density housing on master-planned estates located in suburban areas, and also inner-city high-rise apartments in Melbourne and Sydney.

In recent decades, rooming and relief housing for the homeless have both been privatised, and in recent years this housing has been sold off to avoid maintenance costs and capitalise on sales in Australia’s booming property market. In Melbourne, public housing stocks have been in decline for some time, sparking the 2016 Bendigo Street housing dispute in which homeless people are being housed by the community campaign in homes left empty by the state government.

In 2016, a study by the Australian Housing and Urban Research Institute found an interesting effect of providing public housing to those living in poverty and who are at risk of losing their homes. When poor Western Australians were granted access to public housing, they began to rely on the region's healthcare system less, with immense savings for Western Australia. The reduction in the stress on hospitals, emergency rooms, and other forms of medical care projected to over $16 million saved for Western Australia per annum.[142]

Recently, in a move to address the public housing crisis, Prime Minister Anthony Albanese announced an allocation of $2 billion to states and territories specifically for the development of social housing. This measure is part of the federal government's commitment to tackling housing affordability and homelessness across Australia. The Housing Minister has proposed a guaranteed annual expenditure of $500 million on public housing. However, this policy is contingent on garnering crossbench support to ensure its implementation.[143]

New Zealand

[edit]
Unlike many other countries, much New Zealand state housing of the 20th century was in the form of detached single-family houses similar to private housing. This is a 1947 development in Oranga, Auckland.

Private companies (such as the New Zealand Company) which fostered early organised European settlement in New Zealand constructed immigration barracks to serve as temporary accommodation for their new arrivals.[144]

The Workers' Dwellings Act of 1905 resulted in the New Zealand Government commissioning the building of 646 houses.[145]

In 1937 the First Labour Government launched a major public-housing system—it became known as "state housing"—for citizens unable to afford private rents. Most state housing built between 1937 and the mid-1950s consisted of detached two-to-three-bedroom cottage-style houses; only 1.5% of state houses in 1949 formed part of apartment blocks, all of them in Auckland or in greater Wellington. After World War II ended in 1945, local authorities also started providing social housing, mainly for elderly people with low incomes.

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

Public housing refers to government-owned or -subsidized multi-unit residential developments constructed and operated to provide affordable rental units to low-income households, seniors, and individuals with disabilities at rents below market rates. Originating in the early amid rapid urbanization and slum conditions, these programs expanded globally after to alleviate housing shortages and promote , with the formalizing its federal initiative through the 1937 Housing Act aimed at and employment generation during the . While early low-rise designs offered functional shelter, postwar high-rise projects in cities like St. Louis's Pruitt-Igoe exemplified defining failures, plagued by maintenance neglect, architectural flaws, and socioeconomic isolation that fostered crime and dependency, culminating in mass demolitions from the 1970s onward. In contrast, Singapore's , launched in 1960, represents a standout achievement, housing approximately 80% of residents in subsidized flats that transition to private ownership, yielding high homeownership rates, social cohesion, and minimal decay through rigorous planning and enforcement. Empirical analyses indicate varied causal impacts, with concentrated public housing often correlating to elevated and persistent in distressed locales due to resident selection and locational biases, though dispersed or mixed-income variants demonstrate potential for neutral or reductive effects on neighborhood disorder.

Definition and Fundamentals

Core Definition and Variations

Public housing refers to residential accommodations owned, managed, or financially subsidized by authorities to offer affordable rental options primarily to low-income households, seniors, and individuals with disabilities. In the United States, it operates as a federally funded program administered locally through public housing agencies, providing approximately 1.1 million units as of 2023, with rents typically capped at 30% of tenants' adjusted income. This model emphasizes direct provision of housing stock rather than cash transfers, distinguishing it from voucher-based subsidies like Section 8, though both aim to address housing affordability gaps. Variations in public housing systems arise from differences in national policies, targeting criteria, and delivery mechanisms. Residual models, prevalent in countries like the and the , limit access to the most economically disadvantaged via strict income thresholds and means-testing, often resulting in concentrated within segregated developments. In contrast, universal or broad-access systems, such as Singapore's (HDB) framework established in 1960, extend subsidized units—including schemes with 99-year leases—to about 80% of the population, integrating middle-income groups to foster social mixing and long-term stability. European approaches, exemplified by the (30% social housing stock) and (24%), rely on non-profit cooperatives and municipal to maintain larger proportions of affordable units, often with rents set at 70-80% of market rates and minimal residualization. These variations reflect underlying incentives: residual systems prioritize fiscal targeting but risk stigmatization and maintenance underfunding, while universal models leverage scale for cost efficiencies, as evidenced by Singapore's per-unit construction costs averaging SGD 200,000-300,000 in recent projects, supported by centralized land acquisition. Hybrid forms, such as Vienna's municipally regulated stock comprising 25% of housing, incorporate standards and integration policies to mitigate density-related issues observed in mid-20th-century high-rises. Across systems, empirical data indicate that tenant selection and structures significantly influence occupancy rates, with U.S. public housing vacancy averaging 6-8% pre-2020 due to operational challenges.

Stated Objectives versus Empirical Goals

Public housing programs are typically established with the explicit aims of supplying safe, decent, and affordable rental units to low-income households, elderly individuals, and those with disabilities, thereby mitigating housing instability and . In the United States, federal initiatives under the Department of Housing and Urban Development (HUD) seek to furnish over 2.2 million such units while promoting access to supportive services that enhance resident self-sufficiency. Proponents also assert broader socioeconomic benefits, including reduced housing cost burdens for recipients and positive neighborhood spillovers, such as bolstered local and activity through stabilized low-income demand. Empirical assessments, however, reveal substantial divergences from these objectives, particularly in how public housing structures tenant selection and site allocation, which inadvertently amplify concentration rather than dispersing it. Large-scale developments often cluster high densities of very low-income families—averaging incomes at 24% of area medians—isolating residents from economic opportunities, quality schools, and social networks that could foster upward mobility. This spatial segregation correlates with elevated youth risk behaviors, including higher incidences of and substance issues, as documented in multiple studies reviewing public housing locales. Further data underscore perpetuated dependency cycles misaligned with self-sufficiency goals: children raised in public housing exhibit lower adult earnings compared to peers from similar backgrounds without such assistance, even after controlling for family income. While some analyses detect marginal improvements in metrics like test scores or birth weights for select cohorts, these are overshadowed by broader patterns of entrenched , including amplified negative externalities from density, such as diminished cohesion and heightened maintenance costs due to challenges. Program designs prioritizing income-based eligibility over work incentives or mixed-income integration exacerbate these outcomes, as subsidies tied to static poverty thresholds discourage labor force participation and geographic mobility. Critiques grounded in program mechanics highlight systemic flaws: public agencies, ill-equipped for real estate development roles, face chronic underfunding and local barriers, leading to deteriorating that contravenes "decent " mandates despite initial intents. Although advocates cite stability gains, causal evidence links concentrated — a direct byproduct of site-bound, income-segregated allocation—to amplified social costs, including and disparities, undermining the purported equity and welfare enhancements. This gap persists across jurisdictions, as policies favoring large projects over scattered-site or alternatives fail to align with evidence favoring deconcentration for long-term socioeconomic uplift.

Economic Principles and Incentives

First-Principles Economic Analysis

Public housing constitutes a direct supply-side intervention in the housing market, where governments construct and operate dwelling units offered at rents below production costs, subsidized primarily through general taxation. This approach diverts public funds from alternative allocations, such as or direct support, imposing opportunity costs estimated at $8 billion annually in federal capital and operating subsidies for the approximately 1 million public housing units as of 2024. Taxation to finance these subsidies generates deadweight losses by reducing private investment and labor supply, as resources are reallocated from higher-value uses signaled by market prices to politically determined priorities. Unlike market transactions, where prices equilibrate to reflect and preferences, public housing provision ignores these signals, often resulting in overproduction of low-quality units in suboptimal locations due to bureaucratic rather than consumer-driven . From an efficiency standpoint, in-kind provision through public proves inferior to tenant-based vouchers, which attach subsidies to individuals rather than tying them to specific structures. Empirical analyses of U.S. programs reveal that public housing delivers only $0.88 in housing consumption per spent, compared to $1.14 for vouchers, with the latter achieving comparable or superior housing quality at 40-50% lower administrative costs by leveraging private landlords' incentives for and . Public housing boosts recipients' non-housing consumption by 51-55% but increases housing services by just 5%, reflecting rigid allocation that undervalues tenant preferences for and amenities, whereas vouchers raise housing consumption by 18% and non-housing spending by 35%, allowing better matching to individual needs. This inefficiency stems from the principal-agent problems inherent in management, where operators lack profit motives to minimize costs or innovate, leading to chronic under- and operational deficits requiring ongoing bailouts. Public housing distorts tenant incentives by decoupling housing costs from personal effort, fostering where eligibility tied to low income discourages work or skill-building that could elevate earnings and disqualify aid, thereby perpetuating dependency cycles observed in long-term residency patterns. Tenants, lacking stakes, exhibit reduced , exacerbating property deterioration absent market-enforced accountability, while concentrated developments segment the rental market, suppressing private investment in adjacent low-end stock as subsidized units siphon demand. In contrast, private markets historically supplied through unsubsidized innovation, such as row homes built en masse before widespread interventions, underscoring how public housing crowds out responsive private supply and entrenches segregation of low-income households from economic opportunities.

Perverse Incentives and Design Flaws

Public housing systems often incorporate means-tested rent structures, where tenants pay a percentage of their —typically 30%—toward costs, with subsidies covering the remainder. This creates steep benefit phase-outs, effectively imposing high marginal rates on additional earnings, as increased can disqualify families from assistance or reduce subsidies faster than wages rise. Empirical analyses indicate these mechanisms generate work disincentives; for instance, a U.S. Department of and Urban Development review found that receipt of housing assistance correlates with a modest reduction in among recipients, as the financial penalty for earning more discourages labor force participation. Similarly, econometric studies comparing public housing to vouchers estimate that such programs diminish labor supply by altering incentives, with public housing exhibiting stronger disincentive effects due to its immobility and tied nature. These incentive distortions foster dependency traps, where long-term residency—averaging over 20 years in some U.S. systems—becomes entrenched, as exiting risks losing stable, low-cost shelter amid high private-market rents. Government oversight exacerbates this by centralizing allocation without market discipline, leading to inefficient resource use and fraud vulnerabilities, as documented in congressional critiques of programs like Section 8, which perpetuate waste through poor targeting and administrative bloat. From a causal standpoint, absent personal equity stakes, tenants underinvest in upkeep, while agencies face diluted accountability, resulting in deferred maintenance and physical decay that mirrors pre-existing conditions despite initial investments. Architectural and planning flaws compound these issues, particularly in mid-20th-century high-rise projects designed for density over community cohesion. Features like isolated elevators, windowless corridors, and elevated "streets" in the sky—pioneered in models such as Le Corbusier's —inhibited natural surveillance and social ties, enabling unchecked criminal activity; U.S. projects like Pruitt-Igoe in , demolished in 1972 after just 18 years, exemplified how such designs amplified and proliferation. Concentrating low-income, often single-parent households in vertical monocultures intensified negative peer effects, with studies linking public housing density to elevated crime rates—up to 50% higher than surrounding areas—due to amplification rather than per se. Demolitions and deconcentration efforts, such as Chicago's 1990s Plan for Transformation, empirically reduced local crime by dispersing residents, underscoring how spatial isolation causally entrenches social pathologies.

Historical Development

Early Precursors and 19th-Century Initiatives

The Industrial Revolution's acceleration of urbanization in Britain during the early resulted in overcrowded slums, with cities like housing over one million residents by 1851 amid inadequate sanitation and high mortality rates from diseases such as . Philanthropic responses emerged as precursors to systematic housing provision, emphasizing private initiative to supply sanitary dwellings for the "respectable" working classes without fostering dependency. The Society for Improving the Dwellings of the Labouring Classes, founded in 1845, constructed early model blocks in , such as those showcased at the 1851 , featuring improved ventilation, water access, and separate family units to promote moral and physical health. These efforts prioritized self-supporting operations, with rents set to cover costs and strict tenancy rules excluding the idle or intemperate to ensure upkeep. A landmark initiative was the Peabody Donation Fund, established in 1862 by American financier with an initial £150,000 donation specifically for London's poor, leading to the first blocks completed in 1865 that accommodated 286 families in basic but durable flats. By 1900, the Trust had built dwellings for over 23,000 residents across multiple estates, operating on a no-profit to reinvest surpluses. Model Dwellings Companies (MDCs), private entities like the Metropolitan Association for Improving the Dwellings of the Industrious Classes (formed 1845) and the Artizans', Labourers' & General Dwellings Company (1867), expanded this model, constructing over 30,000 units by century's end through investor capital aiming for 5-7% returns while enforcing hygiene standards. These ventures demonstrated that affordable housing could be viable without subsidies, though limited to employed tenants and often criticized for high rents excluding the poorest. Similar philanthropic experiments occurred elsewhere, such as industrialists' workers' colonies in Germany's Ruhr region, where firms like Krupp provided company housing from the 1860s to stabilize labor forces.

20th-Century Expansion and Ideological Drivers

![Karl-Marx-Hof in Vienna, constructed between 1927 and 1930 as part of Red Vienna's social housing initiative][float-right] The expansion of public housing in the early 20th century was propelled by responses to urbanization-induced overcrowding and post-World War I housing shortages, particularly in Europe and the United Kingdom. In the UK, the Housing, Town Planning, &c. Act 1919, known as the Addison Act, subsidized local authorities to construct homes "fit for heroes," resulting in approximately 214,000 units built by 1923 to alleviate slum conditions and tuberculosis outbreaks linked to poor sanitation. This legislation reflected ideological commitments to state intervention in welfare provision, influenced by progressive reformers who viewed municipal housing as a means to foster social stability and reduce class tensions through improved living standards, though critics later noted it prioritized quantity over quality amid economic constraints. In the United States, public housing emerged during the as part of policies aimed at economic recovery and slum eradication. The National Industrial Recovery Act of 1933 initially funded limited demonstration projects, but the established permanent local housing authorities to develop low-rent projects for families earning below specified income thresholds, with initial construction peaking at over 170,000 units by 1941. Ideologically, proponents drew on reformist ideals of government responsibility for basic needs, blending Keynesian stimulus for job creation with paternalistic goals of moral upliftment via "decent, safe, and sanitary" dwellings, though implementation often reinforced through site selection and tenant policies. Continental Europe saw ideological experimentation in social democratic models, exemplified by Austria's "" initiative from 1919 to 1934, where the Social Democratic Workers' Party oversaw the construction of over 60,000 units, including the massive complex housing 5,000 families. This expansion was driven by Marxist-inspired collectivism, aiming to empower the through state-subsidized, collectively managed housing that symbolized class solidarity and resistance to capitalist exploitation, with architectural features like communal facilities intended to cultivate communal values. Modernist influences, propagated by figures like , further shaped designs toward functionalist high-rises and superblocks, predicated on the rationalist belief that redesigned urban environments could engineer behavioral improvements and eliminate social ills. These drivers, while rooted in empirical observations of industrial-era , often overlooked market dynamics and individual incentives, prioritizing utopian social engineering over sustainable economic models.

Post-1945 Implementation and Mid-Century Shifts

Following , many Western governments initiated large-scale public housing programs to address acute shortages caused by wartime destruction and population growth. In the United States, the authorized the construction of 810,000 units of low-rent public housing over six years, coupled with requirements that mandated the demolition or renovation of one substandard dwelling for each new unit built. This legislation expanded the number of public housing agencies and aimed to provide decent housing for low-income families, though actual construction fell short of targets due to funding constraints and shifting priorities. In the , the 1945 Labour government prioritized housing reconstruction, responding to a deficit of approximately 700,000 homes from pre-war levels due to bombing. Between 1945 and 1951, over 1 million council housing units were completed, with annual production peaking at around 200,000-300,000 units in the late and early under policies emphasizing prefabricated and traditional to meet ambitious targets of 240,000 homes per year. authorities managed these efforts, focusing on low-rise estates initially, though wartime innovations like temporary prefabs were widely deployed. Across , similar expansions occurred amid reconstruction needs. In , post-1945 shortages prompted a building surge, with social housing production averaging 100,000 units annually during the 1960s and 1970s under policies like the Habitation à Loyer Modéré () system. addressed war damage and refugee influxes by constructing millions of units through state-subsidized programs, emphasizing rapid, functional designs in the 1950s. Sweden's model integrated public housing into broader welfare planning, with the 1965 committing to one million new dwellings by 1975, often in high-density configurations. Mid-century shifts from the onward reflected modernist architectural influences and urban pressures, transitioning from low-rise, garden-style developments to high-density tower blocks and slabs to maximize and accommodate growing urban populations. In the , this manifested in high-rise projects under programs, displacing communities but concentrating low-income residents. UK policies under the 1956 and 1961 Housing Acts encouraged multi-story flats, with over 300,000 system-built high-rises erected by the late 1960s, later critiqued for construction defects and . European nations followed suit, prioritizing quantity over integration, which by the 1970s prompted policy reevaluations toward mixed-tenure and tenant management amid emerging maintenance costs and social challenges.

Empirical Outcomes

Metrics of Success: Housing Access and Stability

Public housing programs aim to enhance access to affordable units for low-income households, typically defined as those earning below 50% of area , by providing subsidized rentals at or below 30% of household income. In the United States, these programs house approximately 1.2 million households across over 3,300 public housing agencies, with 91% of residents qualifying as very low-income in 2016 data. rates remain high, averaging 94-96% nationally, reflecting strong and efficient utilization of existing despite chronic underfunding. However, access is severely constrained by limited supply; only about one in four eligible low-income renter households receives any form of federal rental assistance, with many public housing waiting lists closed to new applicants and average wait times exceeding two years as of 2024, reaching up to 18 years in high- areas like . Stability metrics indicate that public housing offers measurable improvements over market-rate alternatives for admitted residents, primarily by capping housing costs and averting immediate . Empirical studies show that public housing reduces severe housing cost burdens—defined as spending over 50% of income on rent—from near-universal levels among unassisted extremely low-income households to more manageable thresholds, enabling resource allocation toward other needs. Average tenancy durations support this, with households staying a of 4-5 years overall, extending to 9 years for elderly residents and 12 years in large systems like New York City's, compared to shorter, more volatile private rentals for similar demographics. Despite these gains, stability is undermined by elevated eviction risks, with public housing tenants facing annual eviction filings at rates of 7.6%, higher than the national average for all and comprising a disproportionate share of cases relative to the program's scale. Such filings often stem from non-payment due to income fluctuations or administrative factors, though programs like models demonstrate that prioritizing permanent subsidies over preconditions can further bolster retention and reduce public costs associated with instability. Globally, coverage remains patchy; data reveal that one-third of low-income tenants face overburden (over 40% of income on housing), with public interventions covering only a fraction of needs in most nations outside exceptional cases.

Evidence of Failures: Crime, Dependency, and Poverty Concentration

Public housing developments, particularly large-scale projects , have frequently resulted in the concentration of , exacerbating social pathologies through spatial isolation of low-income residents from broader economic opportunities and middle-class . This phenomenon, documented in analyses of mid-20th-century urban projects, fosters environments where rates exceed 40% in affected neighborhoods, compared to national averages under 15%, limiting residents' exposure to networks and educational resources essential for upward mobility. Such isolation correlates with intergenerational transmission of disadvantage, as children in these settings exhibit lower and higher dropout rates due to peer effects and diminished access to quality schools. Empirical studies link this poverty concentration to elevated crime rates, with public housing complexes showing violent crime incidences 2-3 times higher than surrounding areas. For instance, data from Los Angeles, Phoenix, and Washington, D.C., between 1986 and 1989 revealed drug-related offenses in public housing at rates significantly exceeding nearby non-housing census tracts, alongside spikes in violent crimes like homicide and robbery within or adjacent to developments. Deconcentrating public housing residents via programs like HOPE VI has demonstrably reduced citywide violent crime by redistributing aid away from high-density projects, implying that the original concentrated model amplified criminal activity through reduced informal social controls and increased opportunities for illicit networks. Welfare dependency persists at high levels in public housing, with over 70% of subsidized households reporting no wage income, perpetuating reliance on government transfers rather than labor market participation. Administrative data from nationwide housing assistance programs indicate long tenures—averaging 8-10 years or more—driven by income eligibility rules that phase out benefits as earnings rise, creating disincentives for work and trapping residents in cycles of aid dependence. This dynamic is compounded by project designs that cluster welfare-dependent families, normalizing non-employment and correlating with higher rates of substance abuse and family instability, as observed in evaluations of intergenerational poverty in federal housing. Reforms shifting to vouchers have shown modest improvements in self-sufficiency, but legacy projects continue to embody these structural flaws.

Theoretical Debates and Controversies

Concentration of Poverty and Social Isolation

Concentration of refers to the geographic clustering of low-income households in neighborhoods where the poverty rate exceeds 40 percent, often amplified by public housing policies that site large-scale developments in already distressed urban areas. Sociologist , in his 1987 book The Truly Disadvantaged, argued that such concentration isolates residents from mainstream economic opportunities and social norms, fostering an characterized by persistent joblessness, single-parent households, and . Wilson posited that the exodus of working-class blacks from inner cities in the 1970s and 1980s, due to and , left behind a residual population increasingly detached from job networks and positive , with public housing projects serving as key loci of this isolation. Empirical analyses support correlations between high-poverty public housing and adverse outcomes, such as block groups around high-rise developments exhibiting poverty rates up to 77 percent, compared to citywide averages far lower. Social isolation in these settings manifests as reduced exposure to employed individuals and institutional resources, contributing to breakdowns in informal social controls and heightened vulnerability to and disorder. Studies of U.S. public housing from the mid-20th century onward how concentrated developments, often comprising over 90 percent low-income tenants, limited residents' access to quality schools, jobs, and mixed-income interactions, perpetuating cycles of . For instance, in Chicago's Cabrini-Green and , demolished in the and early , residents faced extreme isolation, with neighborhood poverty rates exceeding 50 percent and minimal integration with broader society. Efforts to deconcentrate poverty through mobility programs provide quasi-experimental evidence on causal effects. The Gautreaux Assisted Housing Program, initiated in 1976 following a 1969 desegregation lawsuit against the , relocated over 7,000 families from high-poverty projects to low-poverty suburbs using Section 8 vouchers; participants showed improved rates (up to 25 percent higher for women), higher youth , and reduced welfare reliance compared to those remaining in concentrated areas. In contrast, the federally sponsored Moving to Opportunity (MTO) experiment, launched in 1994 across five U.S. cities and involving 4,600 low-income families, offered vouchers for low-poverty neighborhoods; long-term results indicated modest gains in mental and physical (e.g., 16 percent lower rates for adults) and reduced exposure to , but limited improvements in adult earnings or economic self-sufficiency, suggesting neighborhood effects are stronger for than income and potentially confounded by family-level factors. These findings imply that while concentration exacerbates isolation, deconcentration alone does not fully resolve underlying behavioral and structural barriers to upward mobility. Critics of the concentration thesis, including some economists, argue that selection effects—wherein motivated families of or succeed despite poor environments—overstate neighborhood causality, as evidenced by MTO's null findings on boys' outcomes and persistent differences. Academic sources advancing structural explanations like Wilson's have faced for underemphasizing cultural and familial influences, amid noted left-leaning biases in research that prioritize . Nonetheless, policies like the U.S. Quality Housing and Work Responsibility Act of mandated deconcentration by capping public housing poverty rates at 40 percent per project, reflecting empirical consensus on the risks of extreme isolation.

Dependency Traps and Work Disincentives

Public housing programs often structure subsidies such that tenants contribute approximately 30% of their adjusted toward rent, with the remainder covered by government assistance, creating effective marginal rates that can exceed 50-100% on additional earnings due to phased-out benefits. This mechanism discourages labor supply, as incremental increases lead to proportionally larger subsidy reductions, sometimes resulting in net financial loss for households—a phenomenon known as a "benefits cliff." Empirical analyses of U.S. programs, including public housing and vouchers, indicate that recipients reduce quarterly earnings by $285 to $329 and labor force participation by about 4 percentage points compared to eligible non-recipients. Studies further reveal stronger disincentives in traditional public housing, where tenants exhibit roughly 17% lower labor earnings than comparable low-income households, attributed to the stability of in-place subsidies that penalize job-seeking or wage growth. Public housing's concentration of multi-generational welfare-dependent families reinforces these effects through social norms and limited exposure to working-role models, fostering intergenerational transmission of non-employment. Cross-national evidence from echoes this, with public housing linked to greater disincentives than portable vouchers, as fixed-site assistance reduces mobility and job access. These dynamics contribute to dependency traps, where long tenures—averaging over 10 years in U.S. public housing—entrench by isolating residents from economic opportunities and diminishing incentives for self-sufficiency. While some research on younger recipients finds negligible effects, broader datasets across program types confirm modest but persistent reductions in market work, underscoring the need for reforms like earnings disregards to mitigate cliffs. Such traps are exacerbated in high-density projects, where administrative barriers and community-level rates amplify individual disincentives.

Fiscal Sustainability and Maintenance Challenges

Public housing programs worldwide grapple with escalating maintenance demands that outpace funding allocations, resulting in widespread deferred repairs and structural decay. , the backlog of necessary capital improvements for the approximately 1.1 million public housing units stood at an estimated $70 billion in 2019, ballooning to between $80 billion and $90 billion by 2024 due to inflation, aging infrastructure built primarily between the 1930s and 1970s, and insufficient annual appropriations from the Department of Housing and Urban Development (HUD). This underfunding manifests in routine failures during federal inspections; for instance, in , over one-third of public housing sites failed HUD health and safety assessments in 2023, citing issues such as pest infestations, mold, and leaking roofs that exacerbate resident health risks and reduce . Operating expenses further compound these issues, with empirical analyses revealing that public housing incurs higher per-unit costs than comparable private multifamily . A Harvard Joint Center for Housing Studies examination of U.S. data from the to early 2000s found that public housing operating costs averaged 20-30% above market-rate equivalents, attributable to factors including elevated vacancy rates, repair frequency, and bureaucratic delays that inflate administrative overhead. Similarly, evaluations of privatized in urban public housing projects, such as those under HUD's demonstration programs in the , indicated that even third-party private operators struggled to reduce costs below traditional public agency levels without revenue enhancements, due to persistent challenges like non-payment of rents (averaging 10-15% delinquency rates) and concentrated tenant profiles prone to . From a fiscal sustainability standpoint, the reliance on perpetual subsidies undermines long-term viability, as tenant contributions—capped at 30% of —rarely cover full operational needs, necessitating ongoing taxpayer infusions that have totaled over $50 billion annually in recent U.S. federal outlays for public housing operations and capital funds combined. Critics, including analyses from the , contend this structure fosters inefficiency akin to non-competitive public production, where construction costs exceed private benchmarks by 15-25% due to regulatory mandates and union wage premiums, while long-term dependency erodes fiscal resilience amid competing priorities like entitlement programs. In jurisdictions with maturing , such as post-World War II estates, similar patterns emerge: maintenance shortfalls have prompted partial demolitions or conversions to market rentals, as seen in the UK's high-rise estate refurbishments costing £10-20 billion since 2000, highlighting the causal link between subsidy-dependent models and ballooning public debt without proportional asset value preservation.

Successful Models

Singapore's Housing and Development Board System

The (HDB) was established on 1 February 1960 as Singapore's statutory board responsible for public housing development. Tasked with addressing acute housing shortages following in 1959—when only about 9% of residents lived in modern public housing—the HDB rapidly constructed affordable flats, completing nearly 55,000 units within its first five years and resolving the immediate crisis by the late . By 1989, over 80% of the resided in HDB flats, a figure that has stabilized around 80% today, with approximately 1 million flats housing about 5 million people. HDB operates a build-to-order system, constructing flats primarily for sale on 99-year leases with subsidies tied to income levels, financed largely through the (CPF), a mandatory savings scheme for retirement and housing. Eligibility prioritizes Singaporean citizens forming a family nucleus, with grants reducing purchase prices by up to SGD 80,000 for first-time buyers as of 2023. Resale is permitted after a five-year minimum occupation period, fostering a that has driven homeownership to 90%, one of the highest globally, while integrating public housing into wealth accumulation. To promote social cohesion, the Ethnic Integration Policy (EIP), introduced in , enforces quotas within blocks and neighborhoods—capping Chinese at 25%, Malays at 22%, Indians and others at 13%, with the remainder flexible—preventing ethnic enclaves observed in earlier settlements. Empirical outcomes include reduced poverty concentration and enhanced stability, as HDB's design emphasizes through rather than rental dependency, contributing to lower income inequality compared to pure rental models elsewhere. Upgrading programs, such as the Selective En bloc Redevelopment Scheme (SERS) and Programme (), have modernized older estates, with over 200,000 flats refurbished since the 1990s, maintaining asset values amid land scarcity. However, recent challenges include resale prices exceeding SGD 1 million in prime areas, straining affordability for younger buyers amid population growth and limited supply, prompting government interventions like increased Build-To-Order launches and cooling measures. Despite these pressures, HDB's framework has sustained high satisfaction rates, with surveys indicating over 90% of residents viewing their flats as good homes, underscoring its role in national resilience.

Vienna and Austrian Social Housing

Vienna's social housing system, embedded within Austria's broader limited-profit housing framework, originated in the interwar "" period from 1919 to 1934, when social democratic governance led to the construction of over 60,000 units housing approximately 200,000 residents through public investment and rent controls. This initiative addressed post-World War I housing shortages and urban poverty, establishing a model of large-scale, state-directed provision that persists today. Currently, about 60% of 's 1.9 million residents live in social housing, encompassing municipal dwellings managed by the City of Vienna and units operated by limited-profit housing associations (LPHAs), which prioritize cost recovery over . Nationally, Austrian LPHAs manage around one million dwellings, with two-thirds for rent, supported by a "third sector" structure distinct from both for-profit private and direct . The system's funding relies on a combination of mechanisms, including a 1% levy on Viennese wages—split between employees and employers—that generates resources for new and subsidies, with the city allocating roughly €530 million annually to development. LPHAs operate on cost-rent principles, where rents cover , , and operations without speculative gains, supplemented by revolving funds from prior subsidies and object-specific grants that mandate reinvestment. Rents in social housing average €7-8 per square meter, enabling an 80-square-meter to cost €500-600 monthly, compared to €10.50 per square meter in the private market, allowing renters to devote about 21% of household income to . Eligibility requires residency and income caps (e.g., around €57,000 annually for singles), but broad access—covering 80% of residents—and permanent tenancies without income-based promote tenure security across income levels, including middle-class households. Empirical outcomes highlight the model's role in mitigating housing unaffordability and social segregation; social housing dampens private rents by 30-40 cents per square meter for every 10% increase in not-for-profit stock, while avoiding U.S.-style concentration, with only 18% of low-income households in social units as of 2013 versus higher shares elsewhere. exhibits low rates and reduced neighborhood income inequality compared to early 20th-century levels of segregation and deprivation, attributed to mixed-income and ongoing funded by rental reserves. Annual of thousands of units by LPHAs sustains supply, fostering stability in a where remains low at 20%. Challenges include waiting lists exceeding 21,000 households, with delays often spanning years or decades based on location preferences, and criticisms of subsidizing higher earners, bureaucratic inefficiencies, and emerging maintenance shortfalls amid rising costs. Despite these, the system's emphasis on cost-based operations and broad eligibility has maintained affordability and quality, positioning it as a viable alternative to market-driven models in contexts of high demand.

Troubled Implementations

United States: From Projects to Vouchers

Public housing in the originated with the , also known as the Wagner-Steagall Act, which established a federal program for low-rent public housing administered by local public housing authorities (PHAs). The act aimed to provide decent, safe housing for low-income families amid the , authorizing subsidies for construction and operation of projects funded through bonds and limited federal loans. Initial developments focused on family units, but post-World War II expansion under the 1949 Housing Act shifted toward high-density, high-rise "superblocks" to maximize units on limited urban land, often isolating residents from surrounding communities. By the , over 1.5 million units existed nationwide, but many projects deteriorated rapidly due to underfunding, poor design, and resident turnover. High-rise projects like Pruitt-Igoe in St. Louis, completed in 1954 with 2,870 units, exemplified systemic failures, becoming centers of crime, vandalism, and concentrated poverty by the late 1960s. Maintenance costs soared as elevators and corridors—intended for efficiency—facilitated isolation and criminal activity, with vacancy rates exceeding 50% by 1972, leading to the project's demolition that year. Similar issues plagued developments like Chicago's Cabrini-Green, where homicide rates reached 18 per 1,000 residents in the 1990s, far above city averages, attributed to socioeconomic segregation and inadequate management rather than design alone. The 1969 Brooke Amendment capped rents at 25% of income, exacerbating fiscal strains on PHAs, while federal moratoriums on new construction in the early 1970s highlighted the model's unsustainability, as projects fostered dependency and social isolation without addressing root causes like joblessness. Policy shifted in the 1974 Housing and Community Development Act, introducing Section 8's Housing Choice Voucher program, which subsidized private-market rentals to promote tenant mobility and deconcentrate . By 2023, vouchers served about 2.3 million households versus 1.1 million in remaining public units, reflecting a deliberate pivot from supply-side projects to demand-side assistance. Empirical studies indicate vouchers yield better outcomes: recipients access neighborhoods with 20-30% lower rates than project dwellers, experience fewer instabilities, and report improved metrics, such as reduced emergency room visits. The 1990s initiative further accelerated demolitions, replacing 250,000 distressed units with mixed-income developments by 2010, though critics note persistent challenges like low voucher success rates (around 60% finding units due to landlord reluctance) and ongoing work disincentives from income-based rents. This transition underscores causal links between project concentration and adverse social outcomes, favoring vouchers for enabling choice while highlighting needs for broader reforms in maintenance and incentives.

United Kingdom: Council Housing and High-Rise Demolitions

![Cwmbran tower block, a typical example of mid-20th century UK council high-rise housing][float-right] Council housing in the originated with the Housing Act 1890, which empowered local authorities to build homes for the working classes, but expanded dramatically after under the Housing Act 1949 to address acute shortages. By the 1950s and 1960s, local councils constructed over 1.5 million units, including high-rise s promoted as modern solutions for density and affordability, with the first such blocks appearing in the early 1950s. These developments, often featuring system-built designs like prefabricated concrete panels, housed millions but soon revealed structural and social flaws, exemplified by the partial collapse of tower in on 16 May 1968, which killed four residents and prompted immediate safety reviews. High-rise council estates concentrated low-income populations, exacerbating and traps, as residents faced barriers to upward mobility due to geographic segregation from job markets and quality schools. Government data from the 1970s onward showed elevated rates in many estates; for instance, a 1981 study by the Department of the Environment identified "problem estates" with crime levels up to three times the national average, linked to rates exceeding 20% in some areas. Maintenance challenges compounded issues, with system-built blocks suffering from and , leading to high repair costs that strained local budgets; by the 1970s, over 200,000 such units required remediation. The 1980 Housing Act under introduced the scheme, allowing tenants to purchase homes at discounts up to 50%, which by 1997 transferred over 1.7 million properties from council ownership, reducing stock and shifting some maintenance burdens but leaving residual estates with aging, high-needs populations. Subsequent demolitions targeted failing high-rises; the Decent Homes Programme (2000-2010) funded upgrades or replacements, demolishing around 200 tower blocks by 2010, while post-Grenfell Tower fire in 2017, over 300 high-rises were identified for cladding removal or demolition due to fire safety risks, with costs estimated at £15 billion. These efforts reflect recognition of high-rises' role in fostering dependency and crime, as empirical analyses link vertical living to reduced community cohesion and higher anti-social behavior. By 2023, council housing comprised about 1.8 million units, down from a peak of 6.5 million in 1980, with ongoing demolitions in cities like and prioritizing low-rise replacements to mitigate concentrated deprivation. Studies attribute persistent challenges to welfare disincentives, where housing benefits averaging £5,000 annually per household discourage employment, perpetuating cycles of in remaining estates. Despite reforms, critics from conservative think tanks argue that without broader market incentives, council housing continues to entrench social divisions rather than alleviate them.

Other Western Examples: France and Sweden

In , the Habitation à Loyer Modéré () system, established post-World War II to address housing shortages through state-subsidized rentals, expanded rapidly during the 1950s-1970s "" economic boom, constructing large-scale grands ensembles—high-rise complexes in suburban banlieues accommodating millions. By concentrating low-income residents, often recent immigrants from , these developments fostered spatial segregation, with neighborhoods exhibiting unemployment rates exceeding 20-30% among youth, far above national averages, alongside elevated poverty and crime. Empirical studies link residence in such public housing to persistent joblessness via neighborhood effects, including stigmatization that deters employers and limits social networks for . Social tensions erupted periodically, with the first major banlieue riots in 1979 in Vaulx-en-Velin near Lyon, triggered by youth frustration over police interactions and economic marginalization, followed by widespread unrest in 2005 originating in Clichy-sous-Bois HLM estates after two teenagers' deaths during a police chase, resulting in over 10,000 vehicle arsons and €200 million in damages nationwide. Recurring violence, including 2023 riots after a police shooting in Nanterre, underscores unresolved issues of state neglect, inadequate services, and ethnic enclaves where foreign-born populations exceed 50% in some areas, perpetuating cycles of delinquency, drug trafficking, and academic failure. Sweden's , launched in 1965 to eradicate housing shortages by erecting approximately one million apartments by 1974—primarily modernist high-rises in peripheral suburbs like and Tensta—initially housed working-class Swedes but later concentrated socioeconomic challenges as mass from the 1980s onward funneled newcomers into these undersupplied public rentals due to regulated markets and welfare eligibility. This segregation amplified social isolation, with "vulnerable areas" numbering 59 by 2023, characterized by low , parallel societies, and criminal networks dominating local , where foreign-born residents and their children comprise up to 80% of populations and are overrepresented in . Gang-related violence has surged in these suburbs, with 363 shootings in 2023 claiming 53 lives—Sweden's gun homicide rate now 2.5 times the European average—and over 100 bombings in 2024, often unsolved (75-80% clearance rate deficit), linked causally to failed integration, poverty, and transnational networks exploiting ethnic enclaves for drug trade and recruitment of youth from immigrant families. Official data confirm lethal gun violence escalation since 2013 within immigrant-heavy public housing zones, challenging the model's sustainability amid welfare dependency and eroded public trust.

Emerging and Developing Contexts

China and State-Led Urbanization

's approach to public housing has been deeply intertwined with state-directed , which accelerated dramatically following economic reforms initiated in 1978. Under the pre-reform danwei (work-unit) , state-owned enterprises and government agencies provided to urban employees, allocating units based on employment status and party loyalty rather than market mechanisms. This housed much of the urban population but perpetuated inefficiencies, such as underutilization and poor maintenance, as allocation favored insiders over broader needs. The 1998 housing reform marked a pivotal shift, privatizing much danwei housing through sales to occupants at discounted prices, which enabled over 140 million urban households to gain by the early 2000s. Concurrently, the retained control over land supply and , directing local governments to fund via land lease revenues, fueling a boom that raised the urbanization rate from 17.9% in 1978 to 64% by 2020. This state-led model prioritized scale, with annual urban housing starts exceeding 10 million units in peak years of the 2010s, often through public-private partnerships under quotas set by the . To address affordability amid rising prices, the government launched targeted public housing programs, including low-rent housing (li ping fang) for the poorest, economically affordable housing for moderate-income groups, and public rental housing (gong zu fang) aimed at migrants and young workers. Between 2011 and 2015, authorities constructed over 36 million units of such affordable housing, with plans extending into the 14th Five-Year Plan (2021-2025) emphasizing shared-ownership models and subsidized rentals. By 2023, guidelines approved by the State Council sought to repurpose underused assets, like pandemic quarantine facilities, into affordable units, though implementation varies by locality due to fiscal pressures. Despite these efforts, challenges persist in the state-led framework. Local government debt, accrued from land-financed projects, reached 60 trillion yuan by 2023, constraining maintenance and new builds, while restrictions limit rural migrants' access to urban public housing, exacerbating inequality. Housing utilization efficiency in urban areas declined from 84% in 2010 to 78% in , reflecting over-supply in some regions and speculation-driven empty units, as local officials pursued GDP growth through construction targets rather than occupancy. Empirical data indicate that while state direction enabled housing hundreds of millions, causal factors like centralized quotas and revenue incentives have led to mismatches between , with quality issues in rushed projects undermining long-term .

India and Slum Resettlement Programs

's urban slums house an estimated 65 million people, representing about 17% of the urban as of the 2011 census, with rapid exacerbating informal settlements characterized by inadequate , , and overcrowding. resettlement programs aim to relocate or redevelop these areas, primarily through public-private partnerships where developers receive incentives like additional floor space index (FSI) to fund free or for eligible dwellers, while governments provide and grants. Key initiatives include the Slum Rehabilitation Authority (SRA) scheme launched in in 1995, which has approved 1,524 projects but completed only 197 by recent assessments, highlighting implementation bottlenecks. Nationally, the Pradhan Mantri Awas Yojana-Urban (PMAY-U), initiated in 2015 and extended to December 2024, incorporates In-Situ Redevelopment (ISSR) under its Beneficiary-Led Construction and other verticals, offering up to ₹1 per dwelling unit as a grant for slum upgrades on , targeting over 11 million urban poor households including slum dwellers. By June 2024, PMAY-U had sanctioned approximately 11.3 million houses, with about 8.8 million completed, though nearly 47% of the 9.7 urban-constructed units remained unoccupied due to issues like remote locations, poor amenities, and beneficiary ineligibility disputes. Empirical evaluations, such as World Bank analyses of programs, indicate that in-situ upgrades yield higher welfare gains than peripheral resettlement, as the latter often increases commute times by over 50% and correlates with 10-15% job losses among relocated households due to severed proximity to informal hubs. Despite incentives, program effectiveness is undermined by structural flaws: resettlement frequently displaces residents to underserviced outskirts, eroding livelihoods in location-dependent informal sectors like vending and construction, with studies in showing poor households prioritizing job access over formal tenure. Completed SRA projects in have provided secure tenure to over 150,000 households but suffer from high-density designs leading to ventilation deficits, , and rebound formation, as evidenced by post-relocation distress metrics in resident surveys. exacerbates delays, with funds diversion and political favoritism stalling 80-90% of projects; for instance, developer defaults and eligibility have left millions in limbo, per critiques of SRA governance. Only about 20% of slum households achieve upward mobility through such schemes, largely via personal savings rather than program design, underscoring reliance on market distortions over sustainable incentives. Overall, while providing initial , these programs often fail to address causal drivers like and regulatory hurdles, resulting in persistent poverty cycles absent complementary job and skill interventions.

Africa: South Africa and Post-Apartheid Efforts

Following the end of apartheid in 1994, the African National Congress-led government prioritized housing delivery as part of the (RDP), committing to construct at least one million low-cost houses within five years to address the legacy of in and massive housing shortages for black ns. The RDP subsidized free-standing units, typically small "matchbox" homes of around 30-40 square meters, targeted at households earning below a certain income threshold, with delivery peaking at over 235,000 units annually in 1998-1999. By February 2022, the government reported providing approximately five million opportunities since 1994, benefiting an estimated 5 million people through new builds, upgrades, and site allocations, though —reaching 53 million by the 2010s—has outpaced supply, with annual demand exceeding 200,000 units. In 2004, the policy shifted to Breaking New Ground (BNG), emphasizing integrated human settlements with better infrastructure, proximity to jobs, and informal settlement upgrades rather than isolated RDP enclaves, yet delivery slowed dramatically to 34,000 units in 2022-2023 amid fiscal constraints and administrative hurdles. Despite these efforts, outcomes have been mixed, with widespread reports of substandard —such as poor materials leading to rapid deterioration—and remote locations that fail to connect residents to employment centers, perpetuating and dependency on informal backyard shacks within RDP sites. Informal settlements, housing over 10% of the population, persist due to incomplete upgrades and new influxes, while the backlog reached an estimated 2.4 million units by 2024. Governance failures, including , fraud in tender processes, and abandoned projects due to poor , have exacerbated inefficiencies; for instance, allocations for 2025/26 faced opposition over R34 billion in funds vulnerable to mismanagement, with trust deficits eroding program credibility. Recent ministerial reviews highlight cuts of R14 billion over three years and capacity shortages as key barriers, prompting calls for systemic reforms like accelerated private partnerships, though and political patronage continue to undermine equitable delivery. Empirical assessments indicate that while RDP provided initial , it has not fostered upward mobility or sustainable communities, as evidenced by ongoing resident dissatisfaction and resale of units to non-qualifying buyers, signaling a need for market-oriented alternatives over state-centric subsidies.

Reforms and Alternatives

Shift to Vouchers and Mixed-Income Approaches

In the United States, the Housing Choice Voucher Program, commonly known as Section 8, emerged as a key alternative to traditional public housing projects starting with the Housing and Community Development Act of 1974, which authorized tenant-based subsidies allowing low-income households to rent privately owned units while paying approximately 30% of their income toward rent, with the government covering the remainder up to a threshold. This shift aimed to deconcentrate poverty by enabling recipients to select housing in diverse neighborhoods rather than isolating them in government-built high-rises plagued by maintenance failures and social disorder. Empirical studies indicate that vouchers reduce and housing instability among participants, with one analysis showing substantial declines in and severe rent burdens. However, success rates in leasing units vary by locality, often hovering around 60-70% in urban areas due to landlord reluctance amid administrative burdens and perceived risks, though program expansions have improved access in some markets. Complementing vouchers, the program, launched by the Department of Housing and Urban Development in 1992, funded the demolition of over 250,000 distressed public housing units by 2010 and their replacement with mixed-income developments integrating market-rate, subsidized, and sometimes homeownership units to foster and reduce associated with concentrated . These reforms were driven by evidence from the onward linking large-scale projects to elevated and , prompting a policy pivot toward leveraging private developers for revitalization. Longitudinal data reveal positive intergenerational effects, with children from HOPE VI-affected families earning 14% more at age 26 compared to peers in non-revitalized projects, attributed to improved neighborhood environments enhancing formation. Neighborhood rates in redeveloped sites dropped by about 2.9 percentage points post-intervention, sustaining over time, though critics note incomplete resident relocation tracking and potential displacement of vulnerable tenants without adequate vouchers. In the , parallel reforms under the Housing Act 1980's scheme enabled council tenants to purchase units at discounts, reducing public stock by over 2 million units by the 2010s and shifting emphasis to housing associations managing mixed-tenure estates with private market integration. Subsequent stock transfers to non-profit associations in the 1990s-2000s incorporated mixed-income elements to revitalize failing high-rises, mirroring U.S. deconcentration goals amid evidence of in mono-tenure estates. Evaluations show mixed results, with improved property conditions but persistent challenges in achieving income diversity due to selective tenant screening and market pressures. Overall, these and mixed-income strategies prioritize market mechanisms over centralized provision, yielding empirical gains in resident mobility and child outcomes but falling short in scaling supply amid shortages, as demand often exceeds available affordable units.

Private Sector Incentives and Deregulation Proposals

Proponents of private sector involvement in affordable housing argue that market-driven development, supplemented by targeted incentives, can outperform government-led construction by leveraging profit motives and efficiency gains, provided regulations do not excessively distort supply. The (LIHTC), enacted in 1986 under the Tax Reform Act, exemplifies this approach by offering federal tax credits to private investors and developers who finance rental projects with at least 20% of units reserved for households earning no more than 50% of area or 40% for those at 60%. These credits, allocated annually by states and equating to roughly $12-14 billion in value as of 2023, cover 40-70% of non-land development costs for qualifying projects, enabling the production of over 3 million affordable units since inception. Empirical analyses reveal LIHTC's mixed efficacy: while it has expanded low-income rental stock, studies indicate high administrative costs—up to $50,000 per unit in some markets—and suboptimal targeting, as developments often locate in higher- areas with weaker job access, potentially exacerbating spatial mismatch for residents. Compared to direct rental vouchers, LIHTC proves less cost-effective per unit of housing assistance delivered, with new construction subsidies favoring supply expansion over immediate tenant aid, though it avoids some public housing pitfalls like concentrated . Additional incentives, such as density bonuses allowing 10-20% extra units in exchange for affordable inclusions or local tax abatements, aim to further stimulate private builds but face criticism for revenue losses to municipalities without guaranteed supply boosts. Deregulation proposals emphasize reducing land-use barriers to amplify responsiveness to demand, positing that excessive and permitting inflate costs by 20-30% in many U.S. markets through restrictions on , height, and multifamily construction. Peer-reviewed evidence supports this causal link: jurisdictions with laxer , like , exhibit higher housing elasticity—supply increases more readily with price rises—yielding lower affordability gaps than heavily regulated peers. Reforms such as upzoning single-family zones for duplexes or eliminating minimum parking mandates have spurred construction in states like and post-2019 legislation, with short-term unit increases of 5-15% in affected areas, though long-term price reductions depend on scale and enforcement. Critics of heavy , drawing from federal assessments, advocate streamlining federal environmental reviews under NEPA and standardizing building codes to cut approval timelines from years to months, potentially unlocking 1-2 million additional units annually nationwide. Such measures prioritize supply expansion over subsidies, aligning with first-principles where reduced barriers lower equilibrium rents without ongoing fiscal commitments, though implementation faces local resistance from incumbents preserving property values. Empirical cross-market comparisons confirm that outperforms incentive-heavy models in high-demand regions by fostering broader private investment unencumbered by quotas.

Lessons for Policy: Empirical Data on What Works

indicates that traditional models of concentrated public housing, characterized by large-scale, low-income rental projects, often perpetuate cycles of and social dysfunction. Studies link such concentrations to elevated rates, with and violent crimes rising in tandem with density in these developments. For example, public housing projects historically housed residents in neighborhoods where over 40% of the lived below the poverty line, fostering isolation from economic opportunities and amplifying negative peer effects on youth. Demolitions of distressed projects, as in the case of over 250,000 units removed via programs like between 1993 and 2010, have correlated with neighborhood revitalization, including reduced vacancy rates and increased values, though resident relocation outcomes vary. Randomized controlled trials underscore the advantages of housing vouchers over project-based housing for enabling residential mobility and improving long-term outcomes. The Moving to Opportunity (MTO) experiment, conducted from 1994 to 2010 across five U.S. cities with over 4,600 families, found that vouchers restricting use to low-poverty neighborhoods (<10% poverty rate) yielded sustained benefits, including 16-31% reductions in extreme for adults and improved , particularly among females who experienced better and earnings into adulthood. In contrast, unrestricted vouchers showed more modest gains, highlighting the causal role of neighborhood quality in breaking poverty traps. Vouchers also alleviate housing cost burdens, reducing the risk of severe affordability stress by 20-30% for low-income households compared to waitlist controls. Mixed-income redevelopment emerges as another evidence-based approach, with demonstrating intergenerational mobility gains. A national analysis of children in demolished projects (1990s-2000s) revealed they earned 14% more at age 26 than peers in non-demolished public housing, attributable to dispersal into diverse neighborhoods and access to better schools and jobs, though only about 20% of original residents returned to redeveloped sites. These effects persisted despite initial disruptions, with affected youth showing higher rates and reduced . However, success hinged on coupling with vouchers or supportive services, as mere relocation without incentives often left families in similar high-poverty settings. Internationally, Singapore's (HDB) system illustrates the efficacy of subsidized home over pure rental models, housing 82% of citizens in self-owned units since the . Empirical data from resale transactions (1990-2020) show sustained asset appreciation, with flats yielding capital gains that fund upward mobility, alongside high resident satisfaction (over 90% in surveys) due to incentives and ethnic quotas preventing ghettoization. This contrasts with rental-heavy systems, where tenant transience correlates with underinvestment and decay. Policy implications favor deconcentration via vouchers or ownership subsidies, mixed-income integration to dilute effects, and rigorous enforcement of standards, while eschewing isolated mega-projects that empirically amplify social costs without addressing root causes like labor market barriers.

References

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