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Housing Policies: Better
Targeting Those Most in Need
Christophe André
Economics Department
OECD
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Outline of the presentation

General economic background

Housing and welfare systems

Homelessness: trends and policy orientations

Conclusions: how to target those most in
need?
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
General economic background
Trends in most OECD countries

Rising costs and shortages of housing

Rising income inequality and poverty

Deepest recession since the 1930s

Fiscal crisis
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Housing cost overburden rate, 2009 (% of population)
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Income inequality
Gini coefficients of income inequality, mid-1980s and late 2000s
0.50
0.45
Increasing inequality
Countries where inequality widened
0.40
Little change
in inequality
0.35
0.30
0.25
Decreasing
inequality
0.20
0.15
Source: OECD, Divided We Stand: Why Inequality Keeps Rising (2011).
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
OECD output growth and unemployment
GDP growth over the past 5 years (annualised)
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Unemployment rate
General government financial balance
Per cent of GDP (2011)
20
15
10
5
0
-5
-10
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
NOR
HUN
KOR
EST
CHE
MEX
SWE
LUX
FIN
DEU
DNK
AUT
CZE
ITA
AUS
BEL
PRT
ISR
ISL
CAN
NLD
SVK
POL
FRA
SVN
NZL
ESP
GBR
GRC
JPN
USA
IRL
-15
Welfare systems and social housing
Stylised facts




Nordic model: extended welfare and flexibility –
Universal social housing
Continental Europe: significant welfare but less
flexible and universal – Diverse levels and
organisation of social housing
English speaking countries: safety net approach –
residual social housing
Transition economies: privatisation of housing at
different speeds (e.g. cze,pol / est,svk)
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Tenure structure across countries
Per cent of dwelling stock
Owner
Private rental
Public rental
Co-operative
Others
%
100
90
80
70
60
50
40
30
20
10
0
Source: Andrews, Caldera Sánchez and Johansson, “Housing Markets and Structural
Policies in OECD countries”, OECD Economics Department Working Papers, No. 836.
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Types of social housing systems
Based on eligibility and allocation criteria
Broad-based system
Size: Percentage of
social housing in the
total dwelling stock
Targeted system
No income limit: Waiting
list
Income limits:
Waiting list with some
combination of priority
groups
Income limits:
Needs/priority based
allocation
Luxembourg
Estonia
Korea
Mexico
Norway
Slovak Republic
Switzerland
United States
Australia
Italy
Portugal
Hungary
Greece
Slovenia
6-10%
Belgium
New Zealand
Ireland
Canada
Germany
Israel
11-20%
Sweden
Poland
Spain
Czech Republic
Finland
France
United Kingdom
Denmark
Netherlands
Austria
0-5%
More than 20%
Source: OECD Housing Market questionnaire.
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Public spending on housing

Tax reliefs: tend to be regressive

Grants for social housing: generally declining

Housing allowances: under pressure

Public finances increasingly tight -> need for
more focus
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Homelessness: Trends



Difficult to measure. But seems to be
rising in many countries
The recession and budget cuts are likely
to make things worse
Main causes for homelessness:
Relationship breakdown and eviction
 Personal vulnerabilities (addictions, mental
health problems…)

European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Homelessness: Policy orientations

People with no special needs:
Welfare safety net
 Support for housing (allowances, social housing)
 Forbearance (mortgage/rent arrears)/Prevention


People with special needs
Housing First (rather than Staircase models)
 Additional social services
 Coordination with landlords

European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Homelessness and social housing


Disconnect between homelessness policies
and social housing: path dependency,
“policy silos”, stigma, financial risk…
Social housing for people with special
needs?
Difficult for them to access market housing
 Could face hardship in private rental
 Coordination with social services

European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Conclusions: how to target the most in need?

System approach to housing policies: is
more social housing needed or are the
problems elsewhere?

Allocation of social housing is key

For people with special needs: need for
better coordination with social and health
services
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012
Thank you !
European Research Conference
Access to Housing for Homeless People in Europe
York, 21st September 2012