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