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: Helderman@geog.utoronto.caWebsite: (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: Helderman@geog.utoronto.ca

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.