Housing in Metropolitan America - Term Paper Example

?Housing in Metropolitan America Introduction Houses, not only provide shelter to an individual, but also measure one’s financial capa It is oneof the basic needs of man that allows him to survive in this constantly changing world. As a country’s population continues to grow, the importance of housing to its sustainability is becoming a serious matter. In the United States, the population of those who can afford to buy a house has lessened. One main reason to this is the decline on the availability of affordable housing units. The purpose of this study is to analyze the different aspects that contribute to the decline of the available housing units in metropolitan America and to offer right options for the formulation of policies that will help increase the number of the affordable housing units. The US Department of Housing and Urban Development (HUD) A vast majority of the American population are greatly affected by the decrease in the availability of affordable housing units. Homelessness is one major concern of the government nowadays that is the reason why HUD was formed (“Homelessness” n.pag.). HUD was established in the year 1934, with the top mission to increase home ownership in America. To help each family realize the importance of owning a home that is often the basis of a family’s rank in the society. As the demands change, more people instead of choosing to buy a house opt to just rent to fit the budget on hand. In line with this HUD’ s second core mission is to provide assistance to low-income renters by rendering subsidies that will allow them to pay affordable rent (Thompson 2-4). Role of Housing in Sustaining Metropolitan America Many people are struggling to budget their finances to pay for their necessities, including the amount of money paid for home rental, much more when it comes to buying a house. A big number of homeless people especially in known nations like the United States of America might sound unusual, for some this indicates poverty. It is a sad thing to know that while helping the less fortunate countries to develop, the government is unable to deal with the concerns of its own nation, like providing enough affordable housing units to the low income earners. If this situation worsens, many citizens will be affected that will surely become a major problem of the government. This will eventually affect the entire nation’s reputation. The government’s failure to solve this problem will surely result to a growing number of homeless people. Socio-Economic Aspects Owning a house requires a large amount of investment, mostly, ranging from two to four times of a person’s annual income. One third of the United States households are renters. There are only a few, who are capable of acquiring a home at this point in time where the US economic condition remains stagnant (Gabyion n.pag.). It has always been the dream of the American people to live in a house of their own. Today this dream seems to become impossible. The reason is that jobs in America are seldom to be found, not because of people’s inaccuracy but because jobs are not enough for everybody. If no jobs are available then owning a house is still an unclear vision. The incapacity of people to afford inflated home prices is undeniable even to those who are employed, hardly figuring out how to budget expenses that includes the payment of high priced houses (Snyder n.pag.). Figure 1 In Figure 1, the graph shows a difference between the rate of increase in nominal home prices and nominal rents from the year 1983-2009. The number of home owners increased to an amount that is a bit smaller from the increase in house prices. The increase in house prices and home owners should have been the same (“Housing Bubble Graphs” n.pag.). There are about 30 million households in America that are experiencing housing difficulties, almost half of the households are listed to receive government aid, but then only 4.1 million are able to acquire these benefits. There are only 76 rental units available for occupancy in every 100 low income earners. For them to avail of an average U.S. two-bedroom rental unit they must reach earnings of at least $12.28 per hour that is equivalent to three times of the country’s minimum wage (“Affordable Housing Statistics” n.pag.). Physical Aspects The relation of health to housing should not be limited to its structure. The environment that surrounds the house or the community where it is located has to be examined well to prevent threats in health. Subjective aspects of housing have been connected with factors like safety, privacy and a sense of belongingness (Oswald and Wahl 226). Some houses may be affordable to the low income earners but then its physical deficiencies make it unsuitable for living. One out of every seven poor families experience awful housing conditions due to the absence of hot water, electricity, toilet without even having a bathtub or shower. Overcrowding in some houses with occupants greater than the number of rooms, this is happening to about 6.1 million households. A report made for Congress in 2003 by the US Department of Housing and Urban Development has showed a statistics of 5.1 million families living in terrible houses. Unfortunately no government assistance are given to them, these renters are living in houses with severe physical deficiencies, that includes 3.6 million children , 1.6 million elderly adults and 1.3 million disabled adults (“Affordable Housing Statistics” n.pag.). The expensive rate of rent paid by poor families, results to having a small amount of money left for the family to spend on their necessities, most importantly for food and for a doctor’s visit. Therefore the lack of affordable housing units for the poor may lead to diseases and illnesses (Freeman n.pag.). Recommendations "The housing market is still a big drag on the economy as a whole," says U.S. President Barack Obama (Snyder n.pag.). Even the president admits that America’s housing market is undergoing difficulties. There is an urgent need for policies that will help regulate the availability of affordable housing units, most importantly to those who deserves to avail of it, the poor families and the low income earners. The government must provide assistance to families who are less fortunate, giving them shelters that are of good condition to avoid any health related problems. The increasing number of people losing their jobs has caused foreclosures in houses due to unpaid mortgages, more jobs are needed to sustain houses that are under mortgages, also to those who are renters paying monthly rent who badly needs a stable job. A policy that will set rules on the production of houses that are affordable and with good quality must be formulated. An increase on the housing budget is needed so that the construction of low cost housing units will be implemented, hopefully soon. Conclusion The US Department of Housing and Development is the government’s arm that is tasked to handle plights in housing. It is their job to listen to the complaints of the citizens and to try to provide solutions to their housing dilemmas. A person would never want his own house to be foreclosed by lending companies as much as the renters would never allow instances where their things will be thrown outside the house or apartment because of payment discrepancies. It is never too late to ask for the government’s assistance. The crisis in the US housing market if not urgently solved will leave more homeless Americans. This is a serious matter that involves the welfare of everyone in America. Works Cited “Affordable Housing Statistics.” habitat.org. Habitat for Humanity International, 2011. Web. 11 May 2011. . Freeman, Lance. “America’s Affordable Housing Crisis.” American Journal of Public Health 92.5 (2002): n. pag. Web. 11 May 2011. . “Homelessness.” portal.hud.gov. U.S. Department of Housing and Urban Development, 2011. Web. 10 May 2011. . Gabyion. “Importance of Housing.” www.docstoc.com. Docstoc, 2010. Web. 11 May 2011. . Oswald, Frank, and Wahl Hans-Werner. “Housing and Health in Later Life.” www.gigusa.org. Freund Publishing House Ltd., 2004: 226. Web. 11 May 2011. . Parsons, James. “Housing Bubble Graphs.” www.jparsons.net. my blog roll, 2011. Web. 11 May 2011. . Snyder, Michael. “15 Signs the U.S. Housing Market is Headed for a Complete and Total Collapse.” www.businessinsider.com. Business Insider, 20 Aug. 2010. Web. 10 May 2011. . Thompson, Lawrence. “Home Ownership and Assisting Low-Income Renters.” A History of HUD. HUD Publications. United States, 2006. 2-4. mysite.verizon.net. Web. 10 May 2011. . Read More