Brick by Brick
Building Better Housing Policies
The report brings together evidence, international experience and policy insights for the design of housing policies. Emphasis is placed on three broad aspects: inclusiveness, efficiency and sustainability. Inclusive access to housing has become increasingly challenging in many OECD countries due to a large extent to rising housing costs, which reflects the failure of housing supply to meet demand, particularly in jobs-rich urban areas. Geographical constraints play a role, but in many cities regulations, including on land-use and zoning provisions, also constrain supply. At the same time, some regulations on tenant-landlord relations can discourage the development of rental markets, pushing up rents. Moreover, the transition to a low-carbon economy poses challenges for a sector that accounts for 17% of CO2 emissions and 37% of fine particulate matter emissions globally. Almost two-thirds of countries worldwide still lack mandatory building energy codes. Frontloading efforts is critical as dwellings have a very long lifespan. The report lays out evidence-based options for concerted policy action to address these challenges, while recognising complementarities and trade-offs amond the different objectives of housing policies. The report is part of the OECD Housing Tookit, which includes an interactive online dashboard of housing indicators and country snapshots.
Boosting Housing Market Efficiency
The economy’s capacity to align housing supply with demand is crucial to limit excessive price and rent increases, contribute to macroeconomic stability and facilitate residential mobility. This chapter focusses on the fundamental drivers of housing supply and demand to assess the relevance of housing policies in pursuing housing affordability. Simulations illustrate the expected benefits from adopting best practices in terms of rental market regulations, property taxation and the governance of land-use. The chapter concludes with a discussion of potential risks and benefits for housing affordability induced by the ongoing transformation, accelerated by the COVID-19 crisis, towards smart cities, urban sprawl and decarbonisation.
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