Adding to Rental Supply: Review of International

Transcript:Adding to Rental Supply: Review of International:
Adding to Rental Supply: Review of International Rental and Social Housing Policies and Programs STEVE POMEROY FOCUS CONSULTING INC. & CARLETON UNIVERSITY CENTRE FOR URBAN RESEARCH AND EDUCATION (CURE), OTTAWA, CANADA 1 InterAmerica Development Bank IDB International Symposium Mexico City, July 12-13, 2016 Outline Some context Comparative trends in rental housing Overview of recent research examining rental programs and policies across six countries Steve Pomeroy Focus Consulting Inc. 2 Context “A well-operating private rental sector is now seen as a necessity for post industrial economies worldwide as households have become less ‘traditional’, mobility and migration have grown and the labour market increasingly requires a flexible workforce” {Scanlon and Whitehead 2010} Steve Pomeroy Focus Consulting Inc. 3 Concept of Housing as a System Three main parts of the Housing system Ownership Traditional detached/attached homes Condominiums (owned apts) Private Rental Sector Social Rented Sector Distribution in Canada Canada residential construction dominated by ownership (freehold and condominium) Focus Consulting Inc 2016 5 Rental Housing Production 6 Rental Policies in Canada Social Rental Series of public funded supply programs 1949 through 1994 – loans to cover 100% cost plus ongoing operating subsidy to support operations while keeping rents low (30% income) Some small Housing Allowance programs at provincial level (sub-national) All federal funded funding ended 1994 (until 2001) Since 2001 modest scale capital grant program to facilitate production of “affordable rental” – but no more ongoing subsidy Focus Consulting Inc 2016 7 Rental Policies in Canada Market Rental Mortgage insurance to cover rental loans from 1964 Series of public funded stimulus programs mainly 1974 through 1985 Favourable tax treatment of rental investment until 1993 (and temporary tax initiative 1974-81) No incentives of stimulus policies since 1985 Some new initiatives (low rate finance) now under consideration Focus Consulting Inc 2016 8 Focus Consulting Inc 2016 9 International Experience Rental includes private and social Steve Pomeroy Focus Consulting Inc. 10 Definition of “social” not necessarily consistent Political-Economy Influences Explanations for the formation of distinct welfare states and housing systems respectively Esping-Andersen’s ‘The Three Worlds of Welfare Capitalism’ Kemeny’s classification of dualist/unitary housing markets These influences are reflected in the relative scale and form of each countries private and social rental sectors Focus Consulting Inc 2016 11 Trend in OECD Rental Sector (Post war-1990’s) Steve Pomeroy Focus Consulting Inc. 12 Trend in OECD Rental Sector 1990’s to 2012 (private only) Steve Pomeroy Focus Consulting Inc. 13 Trend