1887

OECD Regional Development Working Papers

Working papers from the Regional Development Policy Division of the OECD cover a full range of topics including regional statistics and analysis, urban governance and economics, rural governance and economics, and multi-level governance. Depending on the programme of work, the papers can cover specific topics such as regional innovation and networks, the determinants of regional growth or fiscal consolidation at the sub-national level.

English

Housing policies for sustainable and inclusive cities

How national governments can deliver affordable housing and compact urban development

In a context marked by rapid urbanisation, growing housing demand and the worsening impacts of climate change, national governments play a vital role in delivering environmentally sustainable cities with adequate and affordable housing. This paper reviews national housing policy instruments from around the world, analysing their impacts on compact urban development and housing affordability. First, the paper proposes a framework to better understand the housing market in cities by outlining drivers of housing supply and demand as well as the constitution of the housing market and its segments: homeowners and renters, single- and multi-family homes, market and below-market price segments. Next, the paper analyses a range of policy options available to national governments, which are summarised and evaluated according to their impacts on compactness and affordability. Last, the paper provides short-, medium- and long-term policy recommendations to align national housing policies with the goal of delivering more sustainable and inclusive cities. The paper is one of the first attempts to consider the intersection of physical urban form and housing affordability from a national policy perspective.

English

Keywords: affordable housing, urban form, housing market, housing policy, urban policy, compact urban development
JEL: R21: Urban, Rural, Regional, Real Estate, and Transportation Economics / Household Analysis / Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand; R52: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Government Analysis: Land Use and Other Regulations; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General; O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; R31: Urban, Rural, Regional, Real Estate, and Transportation Economics / Real Estate Markets, Spatial Production Analysis, and Firm Location / Housing Supply and Markets; R38: Urban, Rural, Regional, Real Estate, and Transportation Economics / Real Estate Markets, Spatial Production Analysis, and Firm Location / Production Analysis and Firm Location: Government Policy
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