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Housing in Cities in the COVID-19 era

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The COVID-19 crisis has exposed and worsened housing challenges in many cities in OECD countries. Housing inequality – marked by differences in prices, quality, location, and accessibility – came abruptly to the fore during government-implemented lockdowns and “stay at home” measures.

At the initial peak of the crisis, cities, regions/states and national governments deployed emergency safety measures such as suspending evictions and relocating homeless populations, while some landlords suspended or cancelled rent. However, temporary measures will not solve housing inequality long-term.

This webinar explored what local and national governments can do to offer adequate and more affordable and sustainable housing for all.

Housing in Cities in the COVID-19 era

  1. 1. AZIZA AKHMOUCH HEAD Cities, Urban PoIicies and Sustainable Development Division CENTRE FOR ENTREPRENEUSHIP, SMEs, REGIONS AND CITIES, OECD
  2. 2. Michael Hancock Mayor of Denver, USA Michaela Kauer Director of Vienna’s EU Liaison Office, Brussels Daniela Grabmüllerová Deputy Minister, Ministry of Regional Development, Czech Republic Sjoerdje van Heerden Scientific Officer, Joint Research Centre, European Commission
  3. 3. LAMIA KAMAL- CHAOUI DIRECTOR CENTRE FOR ENTREPRENEUSHIP, SMEs, REGIONS AND CITIES, OECD
  4. 4. SOO-JIN KIM DEPUTY HEAD Cities, Urban PoIicies and Sustainable Development Division CENTRE FOR ENTREPRENEUSHIP, SMEs, REGIONS AND CITIES, OECD
  5. 5. HOUSING IN CITIES IN THE COVID-19 ERA Soo-Jin KIM 10 December 2020 Centre for Entrepreneurship, SMEs, Regions & Cities
  6. 6. © OECD 7 Housing is often a highly urban problem House prices in cities have generally increased faster than national averages Evolution of real house prices, %, Q2 2012 - Q2 2020 0 10 20 30 40 50 60 Cities Towns and suburbs Rural More people live in overcrowded housing in cities % of total population living in overcrowded housing in Europe, by degree of urbanisation Centre for Entrepreneurship, SMEs, Regions & Cities Source: European Union Statistics on Income and Living Conditions (EU-SILC survey)Source: OECD National and Regional House Price Indices (accessed 10 Dec 2020) National average evolution
  7. 7. © OECD 8 Getting the right kind of housing in the right place in cities Centre for Entrepreneurship, SMEs, Regions & Cities Source: OECD (2015), Urban Policy Reviews: Mexico – Transforming Urban Policy & Housing Finance High vacancy rates in several metropolitan areas in Mexico Source: OECD (2018), Housing Dynamics in Korea: Building Inclusive & Sustainable Cities Most substandard housing is concentrated in cities in Korea
  8. 8. © OECD 9 Where you can afford to live within a city determines your life chances Centre for Entrepreneurship, SMEs, Regions & Cities Source: OECD (2016), Making Cities Work for All … and to climb up the income ladder In the Netherlands, children who grew up in the poorest neighbourhoods (bottom 20% of income) ended up earning on average 5-6% less than those who grew up in the most affluent neighbourhoods. Source: OECD (2018), Divided Cities: Understanding Intra-Urban Inequalities A neighbourhood with 1% more white-residents offers each of its residents access to 18 more jobs within a 30-minute commute by public transport. … to access jobs
  9. 9. © OECD 10 COVID-19 exposed & exacerbated urban housing challenges Centre for Entrepreneurship, SMEs, Regions & Cities OECD (2020), Regions and Cities at a Glance Cities’ stronger potential to shift to remote working might affect housing markets % of jobs amenable to remote working Lockdowns revealed unequal housing conditions in cities
  10. 10. © OECD 11 Emergency housing solutions are accelerating broader urban transformation for the long run Centre for Entrepreneurship, SMEs, Regions & Cities Available in 5 languages: English http://oe.cd/covid-cities-en French http://oe.cd/covid-cities-fr Spanish http://oe.cd/covid-cities-es Portuguese http://oe.cd/covid-cities-pt Japanese http://oe.cd/covid-cities-jp SmartSustainableInclusive Freeze / cancel rents Shelter homeless Energy efficiency Building Information Modelling (BIM) Construction robotics Green urban neighbourhoods Build social housing
  11. 11. © OECD 12 Cities have limited resources to supply housing directly, but a range of indirect instruments to steer housing outcomes Centre for Entrepreneurship, SMEs, Regions & Cities OECD (2020), Regions and Cities at a Glance Cities have a tight spending power in housing 0 10 20 30 40 50 60 70 80 90 100 Defence Public order and security Health Environmental protection Recreation, culture and religion Housing and community amenities Economic affairs Social protection General public services Education Share of total municipal expenditure, % Misalignment across national/local housing policies or between housing & other policy sectors is likely to generate trade-offs & jeopardise overall recovery/resilience OECD Regional Development Working Papers, No. 2020/03 "Housing policies for sustainable and inclusive cities: How national governments can deliver affordable housing and compact urban development"
  12. 12. JOIN US  Soo-Jin.Kim@oecd.orgHow’s housing in your city?
  13. 13. Time to hear from you !
  14. 14. Michael Hancock Mayor of Denver, USA Michaela Kauer Director of Vienna’s EU Liaison Office, Brussels Daniela Grabmüllerová Deputy Minister, Ministry of Regional Development, Czech Republic Sjoerdje van Heerden Scientific Officer, Joint Research Centre, European Commission
  15. 15. Michael Hancock Mayor of Denver, USA Michaela Kauer Director of Vienna’s EU Liaison Office, Brussels Daniela Grabmüllerová Deputy Minister, Ministry of Regional Development, Czech Republic Sjoerdje van Heerden Scientific Officer, Joint Research Centre, European Commission
  16. 16. Michael Hancock Mayor of Denver, USA Michaela Kauer Director of Vienna’s EU Liaison Office, Brussels Daniela Grabmüllerová Deputy Minister, Ministry of Regional Development, Czech Republic Sjoerdje van Heerden Scientific Officer, Joint Research Centre, European Commission
  17. 17. MINISTRY OF REGIONAL DEVELOPMENT CZ Daniela Grabmüllerová Czech Republic Housing in Cities in the Covid-19 era - Czech Republic
  18. 18. Extraordinary year 2020  Housing price growth continues …  High demand versus insufficient supply  Slow new housing construction  Record volume of mortgages  Record demand for recreational real properties  Short-term rentals decline (Prague, etc.)
  19. 19. Temporary measures  Extraordinary social allowances - immediate social help (still very low unemployment rate = 3.8%)  Rent moratorium  Loan installment moratorium  Legal protection against eviction  Longer deadlines for services and energy billing  Some hotels as temporary dormitories …
  20. 20. Lessons learned  Reform of Construction Code - speeding up the building permitting process = new Building Act  Use of brownfields in large cities  Support for rental housing; short-term rentals regulation  Support for not for profit (cooperative) housing + houses for seniors
  21. 21. Thanks for your attention. Daniela.Grabmullerova@mmr.cz
  22. 22. Michael Hancock Mayor of Denver, USA Michaela Kauer Director of Vienna’s EU Liaison Office, Brussels Daniela Grabmüllerová Deputy Minister, Ministry of Regional Development, Czech Republic Sjoerdje van Heerden Scientific Officer, Joint Research Centre, European Commission
  23. 23. Time to hear from you !
  24. 24. oe.cd/champion-mayors ChampionMayors@oecd.org @OECD_local linkedin.com/company/oecd-local OECD Cities Policy Responses to COVID-19 (2020) THANK YOU FOR JOINING US OECD Urban Policy Reviews: Mexico 2015 OECD Housing Dynamics in Korea, Building Inclusive and Smart Cities (2018) OECD Regional Development working paper on Housing Policies for sustainable and inclusive Cities (2020)

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