Housing

Housing is the shelter used as a dwelling or living space. It serves many essential functions for individuals, families, or groups. People use housing to prepare food and store their belongings. It provides a space to care for children and the elderly. Most importantly, housing allows people to maintain their privacy. It is also a place for rest, personal maintenance, and leisure.

There are two primary categories of housing: market housing and non-market housing. Market housing is bought and sold on the open market. Prices and rent for these homes are determined by supply and demand. This category includes apartments, condominiums, and private houses owned by individuals or corporations. Non-market housing is managed by governments or non-profit organizations. The goal of non-market housing is to provide affordability for low-income families. This includes public, social, and cooperative housing. These homes are often subsidized, which means the rent is lower than the market rate.

History shows how our view of housing has changed over time. In the 19th century, social reform movements began to focus on housing. They viewed it as a fundamental human need, separate from work or education. In 1948, this idea became official through the Universal Declaration of Human Rights. Article 25 recognized housing as a human right. It established that housing is necessary for an adequate standard of living. Between the 1950s and 1970s, the global supply of adequate housing expanded. This happened because of public subsidies and the direct construction of publicly owned housing.

Since the 1980s, the way people access housing has shifted significantly. Home mortgages have become the most common way for families to acquire homes. Governments have moved toward facilitating the private mortgage market instead of building homes directly. Since the early 2000s, the securitization of mortgage debt has increased globally. This process has helped frame housing as an investment property. However, this shift has also contributed to a shrinking supply of adequate housing. This creates a complex relationship between housing as a home and housing as a financial asset.

Macroeconomics also play a massive role in determining housing prices. For example, the Consumer Price Index can influence costs. Research from 2018 shows that a 1% increase in this index leads to a $3,559,715 increase in housing prices. This can raise the property price per square foot by $119.3387. The money supply, known as M2, also has a positive relationship with prices. In Hong Kong, studies show that as M2 increases by one unit, housing prices rose by 0.0618. Interest rates also cause significant changes in the market.

Interest rates can cause housing prices to drop sharply. In the HAC model, a 1% increase in the best lending rate can cause prices to drop between $18,237.26 and $28,681.17. In the United States, a 1% increase in the real interest rate can decrease property prices from $9,302.845 to $4,957.274. Similarly, a 1% rise in the overnight Hong Kong Interbank Offered Rate can drop prices to about 3,455.529. These fluctuations show how deeply housing is tied to global financial systems. Changes in lending and debt affect whether people can afford to live in certain areas.

Finally, housing is a major social determinant of health. High-quality housing environments contribute positively to an individual's well-being. Conversely, poor-quality housing can harm both physical and mental health. Physical issues can arise from dampness, mold, inadequate heating, or overcrowding. Mental health can suffer from a lack of personal space or housing instability. Children are especially vulnerable to risks like lead exposure or injuries from structural deficiencies. Poor health within a family can even impact housing debt and family assets. Safe and stable housing is therefore essential for optimal health and social opportunity.