AFFORDABLE HOUSING
Our research shows a staggering backlog of 3.7 million affordable housing units across cities and townships . This challenge is exacerbated by urban sprawl , which hinders economic growth and strains fiscal resources .
• Investing in Affordable Housing : Prioritising affordable housing in city centres drives economic growth , enhances infrastructure , and strengthens the fiscal foundation for long-term development .
• Combatting Urban Sprawl : Building on the outskirts exacerbates economic exclusion and limits job opportunities , while in-city housing boosts local business and job creation .
• Private Investment ’ s Role : TUHF ’ s inclusive development finance model proves that small-scale , in-city affordable housing projects can significantly reduce the housing backlog and stimulate local economies .
Urban densification , especially through residential investment , drives local economies , enhances access to business opportunities , and facilitates job creation by leveraging existing physical , social , and administrative infrastructure . This leads to an increase in property values and civil discipline in making service payments , which ultimately strengthens the local and national fiscus over time . With a mediumterm perspective , the state benefits from a stronger fiscal foundation , which enables further investment in infrastructure and housing development .
Investing in affordable housing in cities : A strategic imperative Some municipalities may argue that constructing new developments on the outskirts is cost-effective , but in truth this only exacerbates urban sprawl and perpetuates cycles of economic exclusion and poverty . Research consistently shows that individuals residing on the periphery are more likely to remain marginalised , unemployed , and economically disadvantaged . Low-density housing far from city centres stifles opportunities for business development and job creation . Those who do find work often face exorbitant commuting costs , which limits their ability to pay essential expenses such as rates , taxes , and utility bills .
TUHF , therefore , stands by our conviction that affordable housing investment should not be relegated to the periphery of cities . While it may require higher upfront costs , the long-term benefits - such as stimulating local economic growth and positive fiscal impact - far outweigh the initial expense .
The disconnect between policy and practice Urban densification is a stated policy priority at all levels of government . However , the gap between policy and practice remains wide .
50 REI MAGAZINE DECEMBER 2024 / JANUARY 2025