Housing

Across the OECD, people are finding it difficult to afford the cost of housing, especially in cities where house prices and rents have often risen more quickly than national averages. Housing prices have eased somewhat in most countries since the height of the COVID-19 pandemic, but high borrowing costs are putting home ownership out of reach for many, and the outlook for renters is just as pessimistic. The housing challenge looms especially large for people with low or unstable incomes, youth, families with children and seniors, and homelessness remains a persistent challenge.  

Several policy levers can deliver progress across multiple housing objectives, including social housing investment, land-use planning and housing taxation. However, trade-offs between policy objectives need to be considered and managed carefully, notably between the quantity, affordability, quality and sustainability objectives. Aligning housing policies across and within levels of governments and through spatial planning that spans across functional territories is key to fostering inclusive, efficient and sustainable housing markets.

Economic performance and environmental sustainability hinge on the housing markets’ ability to supply large enough numbers of homes where there is demand without undue urban sprawl. Housing market inefficiencies can erode affordability, result in social and economic exclusion, hinder residential and labour mobility and exacerbate pressures on ecosystems. It is vital to ensure housing markets work properly and that good quality, affordable housing is available where needed. 

Over 2 million people were officially counted as homeless across OECD countries, according to the latest government data. Nonetheless, homelessness remains hard to measure and compare across countries, due in part to large differences in how countries define and collect data. 

Although many governments have put in place strategies and specific measures to prevent homelessness and to provide better support to people experiencing homelessness, more needs to be done to design, implement, evaluate, and scale up effective public policies. This includes a stronger emphasis on prevention, taking a ‘Housing First’ policy approach, and improved access to tailored support and wraparound services that address social, health and employment needs.