
Contents
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Introduction Introduction
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Rising Cost of Housing Rising Cost of Housing
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The Social Protection Function of Housing Policy The Social Protection Function of Housing Policy
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Public Investment in Housing Public Investment in Housing
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Measuring Housing Costs and Affordability Measuring Housing Costs and Affordability
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Housing and Social Protection Outcomes Housing and Social Protection Outcomes
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Housing Wealth and Social Equality Housing Wealth and Social Equality
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Economic Benefits of Housing Wealth Economic Benefits of Housing Wealth
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Public Policy on the Distribution of Housing Wealth Public Policy on the Distribution of Housing Wealth
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Conclusion Conclusion
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References References
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38 Housing
Get accessTony Fahey is Professor Emeritus of Social Policy at University College Dublin Ireland.
Michelle Norris is Professor and Director the Geary Institute for Public Policy at University College Dublin Ireland.
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Published:08 December 2021
Cite
Abstract
This chapter identifies the provision of affordable housing as a key challenge for contemporary welfare states. Rising house prices have undermined many of the mechanisms governments traditionally used to promote housing affordability and have made the challenge of affordability more urgent and more difficult. These forces have also intensified long-standing tensions regarding the role of housing in welfare states, particularly its contribution to achieving two primary distributional aims of social policies: providing a social safety net for the economically vulnerable and mitigating broader social inequalities. Much research on the first aim has focused on policy inputs—particularly social housing provision—rather than on the outcomes they achieve. Consequently, we know less about the affordability benefits generated by social housing than we should. However, in many countries, reductions in exchequer capital subsidies for social housing provision mean that the sector is now largely self-funded from tenants’ rents. Therefore, the large social housing sectors in Western Europe are no longer a guarantee of affordable rents. Subsidies for home ownership are often criticized as a regressive measure, which conflicts with social policy’s equality aim. However, homeowner housing remains the most widely and progressively distributed form of wealth and its contraction in the face of strong house price inflation in recent decades will precipitate increased wealth inequality. Policy responses to this inflation have concentrated on regulating home buyers’ access to mortgage credit, which may impede their ability to buy. Therefore, policies are also needed to improve the supply side of housing and make it more responsive to demand.
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