Affordable Housing: The Problems Facing Low Income Earners

Shelter is a basic need. It is essential to provide adequate shelter to prevent physical harm, health complications and to offer a place for people to socialize and even live as a family. In most cases, the size of the shelter is determined by the number of people living in it, the location of the home and the financial ability of the buyer.

For this reason, most people prefer to rent before they can look for homes that are ideal to mortgage. Affordable housing is designed to meet the needs of low income earners in a certain region, by providing them with shelter they can mortgage based on their financial ability.

It is not only available to people who want to buy homes but also to those who want to rent. To get the average rate that stands as a reasonable cost, the price of the property should not exceed thirty percent of the family’s income. This is the rate that is commonly used in most states and countries.

However, one of the problems that is pulling this plan back is the disparities in achieving the average rate. For instance, if the value of property stands at $50,000 in a certain state, this may stand as an affordable housing price for most of the lower income earners and a larger group of the high income earners, leaving out another group that is below these two. This means that what was seen as reasonable may not be so for the poor people.

This challenge makes most of the plans biased because it is the high income people who end up benefiting. Another challenge is the rapid urbanization that has become a common problem in many countries. The plans that have already been implemented in the cities may not hold for long if the increase in urbanization goes on.

This is not entirely on the negative because some people are also moving from the low income levels to the upper class and this is making them opt for shelter that will befit their new status. Availability of land to set up ideal homes that are within the means of the poor is also affected by urbanization. Most of the land is being sold to private developers who are in a position to set up property for the upper class since this means more profits for the developers.

This has led to segregation in the schemes because most of the low income earners can only afford to rent or buy homes provided by the government, and these are mostly in the projects or schemes. This can even lead to segregation of one race or community. If the governments come in to purchase land for schemes and communities, the property they get may not be the best or the price may not be right.

They may get land that is distantly located from the centers or the social amenities and the price may be doubled by the sellers on the notion that the government is a big spender. However, as long as it is for the benefit of the low earners, it is possible to acquire a substantial piece of land.

Another challenge that may set in is the mismanagement of the affordable housing schemes. This may lead to lack of maintenance funds or even closure of some schemes due to bankruptcy. The essence of providing shelter for the common person should be guided by the needs and the price tag the person can pay.