GGR 357 H1F Geography of Housing and Housing Policy DR. AMANDA HELDERMAN May 12, 2008 INTRODUCTION...
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Transcript of GGR 357 H1F Geography of Housing and Housing Policy DR. AMANDA HELDERMAN May 12, 2008 INTRODUCTION...
GGR 357 H1F
Geography of Housing and Housing Policy
DR. AMANDA HELDERMAN
May 12, 2008INTRODUCTION TO HOUSING
HOUSEHOLDS & HOUSING
Introduction
• The lecturer: Dr. Amanda Helderman• The syllabus: available hard-copies in class• The literature: see syllabus and slides• The assignment: will be made available online• Timelines• Academic conduct• Interpretations of the concept of housing and the
importance of studying housing• Households and housing
Contact information
Contact info: Dr. Amanda HeldermanOffice: Sidney Smith Hall, 5.XXContact: Just before and after each sessionE-Mail: [email protected]: (TBA)
Course topics/ syllabus
• Households and housing (today)• Tenure choice and socio-economic inequalities• Intergenerational transmission of homeownership • Unequal opportunities and social exclusion • Segregation on the housing market • Neighbourhood transitions • Access to housing: housing allocation • Housing affordability and quality • The meanings of home and attitudes towards
homeownership • The role of the state and other actors in the public
domain
Literature
Text book:– Hulchanski, D. and M. Shapcott. 2004. Finding room:
Policy options for a Canadian rental housing strategy. Toronto : University of Toronto Press. (ISBN: 0-7727-1433-9)
Additional texts:– Listed in syllabus– Available through course website: http:// (TBA)
Text book sale
Hulchanski, D. and M. Shapcott. 2004. Finding room: Policy options for a Canadian rental housing strategy. Toronto : University of Toronto Press. (ISBN: 0-7727-1433-9)
Available through lecturer $15.00 Exact change only, on Wednesday
More announcements
Additional reading in the syllabus is required reading
Dare to be critical of the readings!– Text book– Papers from international journals
Assignment
• Individually written, unique research paper• Demographics and housing issues in Torontonian
neighbourhoods • Immediately relevant topic to this course• Due Date: June 20, 2008 • Do not exceed 1,500 words!• Hard copy and digital copy (word only)• The paper should at least describe the demographic,
socio-economic and physical characteristics of the area• Demographic and socio-economic characteristics of the
neighbourhood: http://www.toronto.ca/demographics/ • Physical characteristics of the area: map• ALL RELEVANT LIT SHOULD BE USED!
Assignment
The assignment will be available on the course website– See syllabus
Writing courses – Be aware of waiting times! Contact the writing
centre ASAP Assistance from instructor (at least two weeks
in advance): – By providing 1-page draft outline well in advance of
appointment after class– By appointment after class– By email: [email protected]
Timelines
MIDTERM EXAM: Monday June 2, 2008, this room
DUE DATE PAPER: Friday, June 20, 2008– Drop box Office of Geography/ Program in Planning– Name student, student number, my name, course
June 23-27, 2008: FINAL EXAMINATIONS: – Exact date to be announced
Academic conduct
Doubt about proper academic conduct?– See undergraduate handbook
Paper/ written assignment– Original work for this course only (see handbook)– Appropriate referencing (see course website)– No wiki-pedia!– Individually written, unique paper– Authentic work
Academic conduct
Exams (midterm and final)
– Two hours– No cheating (obviously!)– No aids– Doctor’s notes within reasonable time– 2 short answer questions, 3 essay questions of
which 2 must be answered– No points for questions not answered
Concepts of housing
Why is housing important?
?
Concepts of housing
What is housing?
Concepts of housing
Basic concept of housing often refers to “shelter” Housing sector: housing is a physical product of a large
sector of the economy Housing market: virtual market in which housing
changes owners and occupants Housing stock: existing housing units in a certain area
of different types, not all equally accessible for everyone
Concepts of housing
Alternative definitions/ meanings:– Physical product/ facility: “bricks and mortar”
Concepts of housing
– Commodity/ Economic good: exchange good– Investment good: asset
Concepts of housing
– Sector of the economy: industry/ construction
Concepts of housing
– Social/ collective good: in social networks and in consumption of services
– Building block for neighbourhoods
Defining Housing
Complexity of housing: all alternative definitions are applicable at the same time, some meanings are separated and confused
Broad definition: BUNDLE OF SERVICES (for builders, owners and renters)– Physical facility– Shelter– Consumption of services: public, schools,
environment, etc.– Location/ accessibility
The services delivered by housing
Access to/ occupancy of housing delivers:
1. Shelter from the elements2. Value/ wealth equity for owners3. Shelter from ‘taxes’ e.g. capital4. Accessibility to services (e.g. schools)5. Accessibility to work6. Accessibility to neighbourhood7. Social status8. Right to privacy/ exclusion
Role of location!
Services…
Inputs and services
Production relations
Physical facility (material)
Capital investment
Labour and entrepreneurship
Land and location
Environment/ neighbourhood
Shelter
Equity
Satisfaction and status
Environment
Accessibility
Labour-intensive
Social relations
The importance of housing
Why is housing important and why is housing a unique commodity?
– High cost– Durability– Fixity (location)– Limited adaptability– Complex and diverse housing stock– Links to services– Imposed by government regulation– Externalities/ exogenous influences– Importance to quality of life– Importance to self identity
Segmentation of housing
Immobility and physical durability of housing limits the degree of substitution possible between different types and styles of housing
This may lead to the segmentation of the urban housing stock and the operation of sub-markets
This restricts choices open to some consumers of housing
Recurring theme in housing research, and also in the next few classes
The importance of housing
Housing is the built environment for intraurban migration and mobility
Housing competes with other uses in the urban land market for accessibility and space
Housing is the principal mechanism through which urban neighbourhoods change, and one of the stimulants of change (session on neighbourhood transitions)
– Moves of households/ activities, demographic change– New (demographic/ economic/ social/ cultural)
developments– Aging of real estate– Fluctuations in house prices
Literature Basic Housing Concepts
Bourne, L. (1981), Concepts, Context and Information. In: The Geography of Housing, chapter 2.– Of interest in this chapter: Hägerstrand’s time-space
theory
Slides and literature will be made available through course website– URL will follow on Wednesday
Households and Housing
Immigration – household formation - housing demand Concepts for residential relocation Residential relocations and life course theory Moving distance and motives for moving
Introduction
Popular topics in recent research
Labour market interactions Decision making Housing choices
The importance of the micro level The importance of the macro level
Household and Housing
Why is it important to study households and housing?– Households create a set of circumstances in local
housing markets by their combined behaviour
Matching process: adjustments in housing consumption usually takes place through residential relocations– Important for understanding housing market
dynamics
Residential relocations
Dissatisfaction Life events/ triggers Macro level factors
Consecutive homes
People generally move: From smaller to larger dwellings From rented to owner-occupied dwellings From apartments to single family dwellings
Housing satisfaction: Each home is assumed to fit the household’s need better than the previous home
– Benefits should outweigh the costs to undertake a move– Expanding households: Need for space– Incomes rise with age: resources accumulate over time
Models for housing market behaviour
Traditionally in terms of streams of relocations, and origins and destinations (aggregate patterns):
Gravity models Push/pull models Markov Chains
Gravity models: interactions between places
Assumptions based on the characteristics of places:
– Size of places– Distance between places
Push/pull models: flows of individuals
Assumptions based on individuals assessments of:
– conditions that push the person to consider moving; – attractions of the place of destination; and – intervening factors that affect the cost of the move
(Recurrent) Markov chain: aggregate model
“Models moves between different homes and calculates probabilities of moving to each home in the chain”
Example: hermit crabs
Moves/ residential mobility
Vacancy
Other approaches
Micro-economic approaches Life cycle/ Life course perspective
(Individual) economic approaches
Sjaastad: “The costs and returns of human migration”
– Migration as an investment in human capital– Anticipated stream of benefits alternative location vs.
obtainable benefits current location– Migration as an adjustment mechanism that may narrow
geographic income differentials– Opportunity costs– Monetary and non-monetary (psychological) costs
Larry Sjaastad
Economic decision making
Monetary Non-monetary
-Moving costs -Attachment to home-Foregone earnings -Travelling
-Job search-Training for new job
Non-monetary costs
Psychological attachment to the home:
-Place of family tradition-Familiar environment-Status-Personal adjustments in the home-Identification with the home as a safe place from which to venture out into the world
Life cycle approach
Rossi, 1955, Why families move
“Changes in the household lead to adapting the housing situation to new needs in the household”
Life cycle approach
Brown & Moore, 1970
Dissatisfaction/ stress to be relieved by relocating Decision is a two step process
– Relocation decision– Search for and evaluation of alternative dwellings (place
utility: site utility and situation utility)
Dissatisfaction due to changes in the household and macro factors are not the only factors determining a relocation decision…
Life course perspective
Incorporates life cycle perspective, individual economic perspective, and macro factors
Parallel careers in which triggers for moves may occur: Household career, Labour career, Educational career and Housing career.
Offers the opportunity to link demographic events with demographic behaviour with the goal to uncover causal processes
Life course, parallel careersChild birth
HH
LB
ED
HS
Cohabation
Enrolling into higher education
Child birth
Job change Job change
Divorce/ separation Remarriage
Widowhood
Life course: paradigm shift in the social sciences
Convergence of theory and empirical work Devoted attention to the individual household Brought the topic of residential relocations into the
centre of housing studies
Linking individual action with social change and social structure
Demographic events introduced as milestones and critical transitions in people’s lives
UNIVERSAL: these events apply for almost everyone, and occur everywhere and throughout history
Life course perspective
Young adults (20-35) are by far the most mobile segments of the population
Still shaping their parallel careers Larger probability that they go through an important
transition that requires a residential move Average mobility decreases while the individual
progresses through the life course stages
Life course stages
Life course stages:
1. Home making2. Child bearing3. Child rearing4. Post child
Moving distance and motives
Most moves are short distance moves Predominant motive: adjustment of housing
characteristics For shorter distances, job change may not be necessary
Changing jobs may necessitate a move Long distance moves may be facilitated by employers
and governments
Moving distance and motives
distance
frequency
other
job
household
housing
The environment of the home
(Partial displacement)
After: Roseman, 1971
H
W
NH
The environment of the home
H
W W
NH
(Complete displacement)
After: Roseman, 1971
Three topics in recent research
1. Changing jobs and changing homes2. Decision making by multiple household members3. Sub-optimal housing outcomes
Changing jobs and changing homes
Commuting costs and commuting times affect residential relocations and job mobility
Particularly complicated relocation decisions for dual income households (two locations of work)
Mincer, 1978: Tied movers (move for sake of partner’s career) Tied stayers (kept from moving b/c partner)
Decision making by multiple household members
Individual decision making involves all individual aspects of alternatives
Household decision making considers the dwelling and location aspects separately for all household members:
-Dwelling: number of rooms, type of home, costs, tenure
-Location: commuting times, type of neighbourhood, frequency public transport
Members of current and potential households (marriage, divorce etc.)
Importance of life course theory for housing decision outcomes
Suboptimal outcomes of decision making processes:– Changed income/ resources– Changed need for space– Limited time available– Limited knowledge of place of destination– Preference for a certain type of housing (tenure)
Sub-optimal housing outcomes
Settling for a less preferred dwelling:
Present housing situation Enrolling into higher education Changing jobs Marriage Divorce
The importance of the micro level
Households create a set of circumstances in local housing markets by their combined behaviour
Brown & Moore, 1971: “Studying the micro level is important for identifying key factors that are important at the aggregate level and for creating a conceptual basis for the design of models”.
The importance of the macro level
Metropolitan housing market: affordability and availability
National economic circumstances Demographic circumstances Housing policy, wealth levels and tenure structures Personal level: resources and restrictions, motives Macro level: opportunities and constraints, choice set
Literature Households and Housing
- Bourne, L.S. (1981), Concepts, context and information. In: The Geography of housing. Chapter 2. p. 13-38.
- The Canada Mortgage and Housing Corporation (2007), Demographic and Socio-economic Influences on Housing Demand. In: Canadian Housing Observer 2007. pp. 23-36.
- Clark, W.A.V. & F.M. Dieleman (1996), Housing and the life course. In: Households and housing. Choice and outcomes in the housing market. Rutgers: the state university of New Jersey. Chapter 2. pp. 22-38.
- Dieleman, F.M. (2001), Modelling residential mobility; a review of recent trends in research. Journal of Housing and the Built Environment (16), pp. 249-265.