Rental Housing - UN-Habitat

Many governments have neglected rental housing mainly for ideologicalreasons. Over the years politicians have queued up to attest that owneroccupiersare better citizens than tenants (see section V.C.). Many politicianshave argued that owners are more mature than tenants and contribute more toboth economy and society. They are politically conservative and contribute tothe economy both through their savings and their investment. Building homesfor owner-occupation creates jobs and is generally good for the economy. Littleempirical support has been provided for these arguments but they seemed toappeal to the electorate.This report demonstrates that most of those arguments are highly flawed.Owner occupation offers families a great deal but the advantages are greatlyexaggerated. Criticisms of rental housing are equally exaggerated ignoring boththe advantages that renting offers, to both tenants and landlords, andperpetuating false myths about the nature of landlordism. And, the key aim ofgovernment policy in most countries, to achieve universal homeownership, is adangerous myth. No country can reach such a goal. The experience of theUnited States of America demonstrates that in this sense, the “AmericanDream” is unachievable (see appendix 7).This report does not make an attempt to claim that renting is anything buta partial answer to the housing problems so many people are facing. Nor will itdeny that much of rental accommodation is inadequate, or contest that many ofthe buildings in which tenants and sharers live would fail any conscientioushousing inspection. Its argument is less visionary than pragmatic. Governmentsshould not close their eyes to reality as so many in developing countries tendto. They should not perpetuate the myth of the achievability of universalhomeownership. They should accept that millions of households live in rentalhousing and that at some point in their family lives most people need rentalaccommodation. Governments should formulate rules, credit programmes andforms of assistance to create more rental housing and to improve the existingstock. To put it directly, many politicians should change their attitudesregarding current housing policies, and should try to do something practical tohelp those members of their society who will always live in rental housing. Thecurrent policy void in so many countries is undesirable and unethical.Hopefully, it is also under review.I.B. Defining termsOwners are defined in this report as those with the legal or de facto right tooccupy, let, use or dispose of their dwelling. This includes those who are in theprocess of acquiring the right to ownership (e.g., through payments on amortgage). Ownership always relates to the tenure of a dwelling but not alwaysChapter I: Introduction 3