Housing Problem :: essays research papers

Many economists argue that market solutions ar more efficient than brass agencies in providing services even when it comes to deserve goods. In the discussion of lodgement problem, I would disagree with the economists view. house is a very complicate issue that I confide it will work the best by the cooperation of market and government agencies. The Canadian government has worked for many years on the housing issue, but does not seem to have any capable solutions to solve the problem. The housing market, strange other industry, has a dominant feature of inelastic short-run supply. This feature of the housing market has make a great obstacle in coping with the problem. In fact, we whitethorn look at other countries experiences and subscribe how to deal with the problem effectively. Canadian governments housing insurance policy is based on the idea that everyone is entitled to decent and affordable housing. Housing is a necessity and everyone needs a place to live. It is fo r this reason that government set its goal to ensure everyone is living in housing of adequate quality at a price they can afford. However, the government has glum into wrong definition of decency and affordability. Firstly, decency is subjective according to different cultures. I count on that the Canadian government is setting a very high measure on living environment, and such a high standard may cause more difficulties in solving the problem. Secondly, Canadian government has incessantly reduced its standard in defining affordability. It was consider affordable if housing cost no more than 20% of your income. Nevertheless, the standard has been reduced to no more than 40% until recently. Such dramatic change of the figure has made the goal become ambiguous. Practically, the government has tried many methods in dealings with the housing problem. Housing code enforcement is a method that tries to regulate nominal conditions for rental housing. However, this method does not s eem to work because it brings additional be to the tenant. On the other hand, the government tries to help people become homeowner by benefits in kind, such as imposing tax liberty on first home down payment and low involvement rate on mortgages. However, the method does not really aim at helping the poor. Moreover, the government tries to increase the supply of housing by construct new shelters and buying existing apartments. Yet, none of these work efficiently. The reason that create new shelters does not work is because most of these new housing projects be expensive and time consuming.