How can the housing construction market be stimulated as part of a housing policy that is an important segment of a counter-cyclical, anti-crisis, Keynsian, pro-growth, investment but also green socio-economic policy and is one of the key determinants of a significant increase in the economy's resilience to economic, financial but also climate crises?
The construction and housing sectors are cyclical sectors, i.e. the economic situation in these sectors, including the level of investment, is usually strongly correlated with the economic situation in the economy as a whole. When central banks raise interest rates, loans on offer from commercial banks become more expensive, including investment loans taken out with banks by developers building housing estates and mortgages with which citizens buy property. In view of the fact that in many countries bank loans have been increasing in price for several months or more, so the scale of new investments in the construction sector has declined strongly. On the other hand, when the economy is in crisis, many sectors are in decline then unemployment rises, incomes, consumption and investment fall. In view of the above, the activation of the construction of houses and flats within the framework of housing policy, which is an important segment of socio-economic policy, can also be an important factor in the anti-crisis measures of the government during the economic downturn. In such a situation, the activation of investment processes for the construction of houses and housing estates can be an important factor in limiting the scale of the development of an economic downturn and economic crisis. Efficient stimulation of the housing construction market within the framework of housing policy, which is an important segment of counter-cyclical, anti-crisis, Keynsian, developmental, investment-oriented socio-economic policy, can be one of the key determinants of a significant increase in the economy's resilience to economic crises. Periods of economic decline occur every few years as part of business cycles and large, trans-national financial and economic crises occur every dozen or more years. In addition to such crises, the scale of a kind of new crisis is growing, which will also influence the development of economic processes in the future. The development of technology, civilisation, consumption of raw materials in manufacturing processes, the level of environmental pollution, deforestation, the extinction of many species of flora and fauna, the decline in the biodiversity of natural ecosystems, greenhouse gas emissions, etc., have all significantly accelerated since the mid-20th century. The result of the increase in civilisational greenhouse gas emissions since the mid-20th century is an accelerating process of global warming, the increasing scale of the negative effects of this process year after year, and the growing risk and scale of a global climate-ecological catastrophe, which may already occur at the end of this 21st century. Therefore, economic policy should be transformed into a green transformation policy for the economy and, within the framework of a Keynsian, development-oriented, investment-oriented, green socio-economic policy, one of the key segments of which would be the activation of green transformation investments in the construction sector and the development of sustainable low-energy, zero-energy and low-carbon construction. The green transformation process in the building sector on the one hand on carrying out thermal modernisation of existing buildings and replacing heat and electricity sources with renewable and zero-carbon energy sources. On the other hand, the development of sustainable low-energy, zero-energy and low-carbon buildings is based on the construction of new houses, housing estates, industrial buildings, public institutions, office buildings and others, taking into account the application of new green building technologies, energy efficiency standards, supply of energy exclusively from renewable and emission-free energy sources and adherence to the principles of closed-loop economics.
In view of the above, I address the following question to the esteemed community of scientists and researchers:
How can the housing construction market be stimulated within the framework of a housing policy that constitutes an important segment of a counter-cyclical, anti-crisis, Keynsian, pro-development, investment but also green socio-economic policy and is one of the key determinants of a significant increase in the resilience of the economy to economic, financial but also climate crises?
And what is your opinion on this?
What do you think about this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Best regards,
Dariusz Prokopowicz
Housing policy is an important segment of socio-economic policy, as it can have a significant impact on the housing construction market. A well-designed housing policy can stimulate the housing construction market by providing incentives for developers and investors to build new homes. This could include tax breaks or subsidies for developers, as well as programs that provide low-interest loans or grants to help finance the construction of new homes. Additionally, a housing policy could also provide incentives to encourage people to buy existing homes, such as offering tax credits or other financial assistance. By stimulating the housing construction market through these measures, it can help create jobs and boost economic growth in the long run.
Ref:
- https://localhousingsolutions.org/housing-policy-framework/
- https://www.brookings.edu/blog/the-avenue/2018/05/02/nine-rules-for-better-housing-policy/
- https://ighhub.org/solutions/policy/housing-policy
In a broad sense, housing policy is the combination of all actions taken by a government to influence the health of the housing market. The major goal of these initiatives is to give individuals access to inexpensive housing that must also meet quality standards. In addition to these, the governments may seek stability, domestic economic competitiveness, and even industrial stimulation domestic economic competitiveness, and even industrial stimulation are other objectives the governments may seek in addition to these. For instance, during the interwar period, house rents in Germany were constrained to control the workers' demands for pay increases and to lower the cost of domestic goods.
Housing is essential to socio-economic policy, significantly impacting the construction market. The construction market is critical to a healthy economy, providing jobs, housing, and other services. A well-thought-out housing policy can help stimulate the construction market and contribute to a more robust economy. Housing policies should be designed to promote investment in the construction market. It can be done by incentivizing developers to build new housing in areas that need it. Tax breaks, reduced regulations, and other forms of support can encourage investors to take on projects that will create new homes and jobs. Incentives can also be made for buyers to purchase new homes by providing tax credits, low-interest loans, and other forms of assistance. In principle, it will help people afford a new home, leading to increased demand for housing and a corresponding increase in the construction market. Along with providing incentives, housing policy should also focus on expanding the availability of affordable housing by incentivizing developers to build affordable housing in areas where it is needed; This can include tax credits, low-interest loans, and other forms of assistance. It can also have zoning regulations that encourage developers to build affordable housing in areas that need it. These policies help ensure everyone can access affordable housing, leading to increased construction activity. Finally, housing policy should focus on creating a stable housing market and incentivizing developers to buy and maintain existing housing, which can help prevent the market from becoming too volatile. It can also include policies that protect tenants from unfair eviction and other forms of discrimination, which can help to ensure that housing is available to those who need it. A well-thought-out housing policy can help to stimulate the housing construction market and contribute to a more robust economy. By providing incentives for developers to invest in the construction market, increasing the availability of affordable housing, and creating a stable housing market, housing policy can help ensure everyone has access to safe and affordable housing.
References:
Crawford, M. (2021). A Comprehensive Guide to Housing Policy. Retrieved June 4, 2021, from https://www.housingpolicy.org/housing-policy/
National Low Income Housing Coalition. (2021). Housing Policy Solutions. Retrieved June 4, 2021, from https://nlihc.org/issues/housing-policy-solutions
The National Association of Realtors. (2021). Housing Policy and Program Guide. Retrieved June 4, 2021, from https://www.nar.realtor/housing-policy-and-program-guide
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