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Chapter 5 shows that German housing programs reached a turning point in the mid-1970s. Initially, these programs reinforced the postwar export-oriented growth regime by alleviating housing shortages and creating low-cost housing that limited wage demands and inflation. However, as housing shortages abated, policymakers started criticizing them for contradicting the growth regime by increasing public debt, diverting capital from manufacturing, and fueling inflation. Unlike American policymakers who expanded housing support in response to post-Keynesian challenges, German policymakers began scaling down housing programs. By the late 1980s, they had gradually reduced large-scale rental housing programs. At the same time, they protected homeownership support, including through Chancellor Helmut Kohl's 1986 tax reform, not as a growth strategy but as policies for family support, wealth creation, and old-age security. However, key actors in the German growth regime critiqued homeownership programs for limiting labor mobility, inflating prices, and shifting capital away from manufacturing. For the time being, German politicians prioritized political factors and ignored macroeconomic critiques.
Chapter 8 highlights the paradoxes of American and German housing policymaking amid surging house prices during the 2010s and early 2020s. American housing programs reinforced demand-led growth but also fueled financial bubbles and economic turmoil. In the post-2008-2009 period, this pattern persisted as policymakers continued stimulating housing-based growth, which simultaneously contributed to skyrocketing house prices, fears of a housing bubble, and an affordability crisis. In contrast, German policymakers retrenched housing programs that once supported the country's export-oriented growth regime by deflating housing costs. Consequently, they deprived themselves of the tools to respond to rapidly rising housing costs and affordability problems of recent years that risked fueling inflation and wage demands detrimental to export competitiveness. The conclusion of this book extends the broader lessons beyond the United States and Germany to such countries as Austria, Canada, the Netherlands, Sweden, and the United Kingdom, illustrating how these countries' different growth regimes channel housing policymaking in different directions.
Chapter 2 explores how American policymakers built a government-sponsored housing finance model during and after the Great Depression. While the country entered the depression without major national housing programs, it emerged with an expansive toolkit of demand-side housing policies. The FDR administration discovered that subsidizing home mortgages would produce economic cascade effects by stimulating bank lending, construction, employment, wages, and consumer spending, reinforcing the country's emerging demand-led growth regime. The core idea behind New Deal housing programs was to transform mortgage markets to lower the cost for borrowers and minimize risk for creditors. These initiatives included the Federal Housing Administration's mortgage insurance program, which offered affordable mortgages to millions of homeowners - although excluding racialized minorities. These housing initiatives helped overcome the depression and permanently made housing finance a "national champion," albeit one heavily dependent on state support. Reinforcing housing-based growth became a routine response to address economic challenges well into the post-WWII period.
Housing is a defining issue of our time, driving a persistent affordability crisis, financial instability, and economic inequality. Through the Roof examines the crucial role of the state in shaping the housing markets of two economic powerhouses – the United States and Germany. The book starts with a puzzle: Free-market America has vigorously supported homeownership markets with generous government programs, while social-market Germany has slashed policy support for both homeownership and rental markets throughout the past century. The book explains why the two nations have adopted such radically different and unexpected housing policy approaches. Drawing on extensive archival material and interviews with policymakers, it argues that contrasting forms of capitalism – demand-led in the United States and export-oriented in Germany – resulted in divergent housing policies. In both countries, these policies have subsequently transformed capitalism itself.
Chapter 6 explains how and why American policymakers doubled down on housing programs in response to the 2008-2009 housing crash. Although the crash presented an opportunity to end generous housing programs that helped inflate the housing bubble, policymakers did the opposite. With remarkably little partisan conflict, they expanded housing support to fix the source of the crisis and promote economic recovery by restoring housing-based growth. By bailing out the government-sponsored enterprises Fannie Mae and Freddie Mac, politicians effectively nationalized the country's housing finance market. The Federal Reserve further supported housing by purchasing large amounts of mortgage debt through its quantitative easing programs, which artificially lowered mortgage costs for households. Although initially designed as temporary measures, decisionmakers made these interventions permanent, fearing that removing them could disrupt a complex mortgage market and housing-based growth central to the demand-led economy. This housing policy expansion was the logical culmination of a century-long process of cumulative political actions to stimulate housing and reinforce America's demand-led growth regime.
Chapter 3 explores the origins of German housing programs in the post-WWII period, arguing that these programs reinforced the country's export-oriented economy and contributed to its economic miracle. Facing severe housing shortages after WWII, German policymakers adopted extensive housing programs, including tax subsidies and social housing programs for both rental housing and homeownership, savings subsidies, and rent controls. These programs aimed to establish low-cost housing for workers and the middle class, which improved industrial productivity by alleviating labor shortages in industrial centers and limiting wage demands and inflation detrimental to export-oriented growth. Unlike American housing programs focused on boosting domestic demand, German supply-side initiatives were designed to overcome the immediate post-WWII housing crisis and support the country's manufacturing sector. These efforts thus made housing programs a pivotal element in Germany's coordinated, export-oriented postwar economy.
Chapter 7 details the retrenchment of German housing programs during the country's structural economic crisis in the 2000s. Unlike American policymakers who expanded housing programs during the 2008-2009 crisis, German leaders cut housing programs to reduce fiscal deficits and reallocate funds to education, research, and technology. Following reunification, Germany experienced a brief housing boom in the 1990s, driven by demand-side housing stimulus programs, including a mortgage interest deduction, to spur growth in eastern Germany. However, this boom soon turned into a construction bust, leaving the country with one million vacant homes and reinforcing mass unemployment and capital misallocations in the economy. For German policymakers, housing programs became structural economic problems detrimental to the manufacturing-based, export-oriented economy. In 2006, Chancellor Angela Merkel's grand coalition sacrificed major social housing and homeownership programs, despite their popularity, in the name of reviving the German export-oriented economy.
Housing is the defining issue of our time, driving a persistent affordability crisis, financial instability, and economic inequality. Through the Roof examines the crucial role of the state in shaping the housing markets of two economic powerhouses-the United States and Germany. The book starts with a puzzle: laissez-faire America has vigorously supported homeownership markets with generous government programs, while social democratic Germany has slashed policy support for both homeownership and rental markets. The book explains why both nations have adopted such radically different and unexpected housing policy approaches. Drawing on extensive archival material and interviews with policymakers, it argues that contrasting forms of capitalism-demand-led in the United States and export-oriented in Germany-resulted in divergent housing policies. In both countries, these policies have subsequently transformed capitalism itself.
Housing informality has emerged across developing and developed societies amid the global housing crisis. This article presents an intra-national comparative analysis of informal housing interventions in Hong Kong and Guangzhou, two major Chinese cities, to investigate the policies and discourses of urban housing informality and the factors shaping different governance regimes. A critical policy discourse analysis was conducted on official documents addressing subdivided units in Hong Kong and urban villages in Guangzhou between 2010 and 2023. The analysis focuses on policy goals, interventive measures and state-market-society relations, revealing that despite similarities between subdivided units and urban villages, government interventions differ significantly. The Hong Kong government has adopted a regulatory-welfare-mix model, whereas the Guangzhou government has pursued a developmental approach to address the phenomenon. This article contributes to policy studies by comparing informal housing intervention approaches and analysing the within-country divergence of normative goals and policy levers under different sociopolitical contexts.
Cities around the world are facing a global housing crisis characterized by rising unaffordability, slums, gentrification, inequality, and urban segregation. The Global Financial Crisis highlighted the detrimental impact of highly financialized housing markets. This Article argues that transitioning from a market-based to a welfare-oriented approach is both necessary and feasible to ensure the right to adequate housing for everyone. This shift requires a fundamental re-imagining of housing issues, recognizing that the root causes lie in a political economy where law plays a pivotal role, crossing traditional boundaries between private and public law. We illustrate the legal foundations of adopting a welfare-based approach to the political economy of housing law, contrasting it with a market-based approach in three key areas: Land use regulation, housing finance, and rental markets.
A neglected dimension of housing policy is how municipalities use it as a gatekeeping mechanism to exclude vulnerable groups and thereby control their territory. To examine this topic, we apply a systematic review that draws on the international academic literature and utilizes three bibliometric analyses. First, statistical analysis reveals the field’s growth and how it is characterized by publications often combining an impressive set of data and methods. Second, the material is explored through network analysis, emphasizing how a few important journals lead the distribution of knowledge. Finally, a thematic analysis highlights consistency in the detrimental effects of exclusionary policies across different contexts. A distinction between planned excluding practices and policies with such unintended effects are also evident. The analysis underscores the conflict between individual responsibilities and societal obligations, where current policies tend to place substantial burdens on the individual.
This chapter begins the last section, a section that explores how the police power can be used to address modern social problems. We look at a number of these wicked problems, including housing, transportation, environmental degradation, and other predicaments, and connect our conception of the police power as described earlier in this book to the use of this power proactively to confront these especially difficult problems.
A substantial international body of evidence links housing to health outcomes. In 2021, the World Health Organisation (WHO) evaluated a small selection of policies from its six geographic regions and found that, in Australia as in the rest of the world, existing healthy housing measures fall short of the systemic response required to address health impacts and inequities. This paper takes the novel step of applying Bacchi’s (2009) ‘What is the Problem Represented to Be?’ approach to a wide-ranging thematic analysis of over 300 Australian policies across the domains of health and housing and related policy areas. In so doing, it offers an overview of existing healthy housing policy as well as illuminating the conceptual understandings and priorities of policy makers, shedding light on the policy paradigms that see housing under-utilised as a preventive health and health equity measure.
We investigated both the direct and indirect political dividends of public policies by examining Minha Casa, Minha Vida, a housing programme in Brazil that selects its beneficiaries by lottery. We surveyed the lottery participants and found that the winners were not more likely to support the incumbent politicians. Non-beneficiaries, a much larger group, were aware of the programme and thought well of it while the beneficiaries' responses to the programme were sometimes underwhelming. However, politicians considered the programme to be an electoral asset, and a difference-in-differences analysis of electoral results leveraging the roll-out of the programme across municipalities found that presidential and mayoral incumbent candidates performed better in localities that had implemented MCMV. Overall, when the beneficiaries formed a relatively small group, the benefits were conspicuous and the programme's objectives were widely supported. Government programmes can create electoral payoffs independently of how programmes are perceived or experienced by beneficiaries.
The narrative of Chinese real estate investors in some western jurisdictions reads like this: China has, in recent decades, enjoyed burgeoning wealth creation across all strata in society. Chinese buyers are attracted to a ‘westernised’ education for their children, an agreeable and law-abiding civic society all whilst living in a clean and pleasant environment. Western property markets are seen as safe havens and bringing about portfolio diversification. This flood of Chinese wealth has impacted residential housing markets resulting in locals being outpriced. To combat unaffordability and housing shortages, governments have had no choice but to impose regulatory measures preventing foreign (mainly Chinese) capital from overrunning the market. Is this story cogent? This chapter explores the propriety and logic of some of the articulated housing policies that have led to legislative amendments made by governments in Australia, New Zealand and Canada, purportedly in response to the fact that Chinese nationals have been driving up prices in their residential markets.
What are the various ways in which local governments in China accommodate migrants through housing policies, and what are the forces that drive these variations? Through systematic coding of policy documents from 97 prefecture-level cities, this study captures the patterns of migrant housing policies using cluster analysis. We found that 18.6 per cent of the cities adopted a residual approach. Most cities adopted a rental-based approach (public and private rental, and collective rental) that could only meet migrants’ short-term housing needs. Only a few cities (12.4 per cent) adopted a citizenship-oriented approach, which best fits the central government's overarching goal of facilitating migrant workers’ long-term settlement in the host cities. Regression analyses examining the determinants of local migrant housing policies showed that the policy variations were not only shaped by economic and political concerns but also the salience of urban issues (problem-solving functions) and previous welfare generosity (path-dependency tendencies).
This paper draws on historical institutionalism to consider the impact of housing-policy responses following the Grenfell fire on the marginalisation of the social-housing resident. We consider three specific policy responses: reform focused on conditions of rented properties; the social-housing White Paper; and building regulation and building-safety reforms. We suggest that, in historical institutionalist terms, each is part of a matrix of reform in which understandings of the social-housing resident play a critical role. We argue that rather than the fire provoking a paradigm shift in the recognition that government accords to the ignored and stigmatised citizens who live in social housing, the policy initiatives to date indicate a much more limited adjustment of policy within a normal frame. We suggest that this is because housing policy is dominated by a consumerist ideology that is self-reinforcing and ignores the social, economic and political complexity of tenure.
Homelessness is largely understood as an urban issue and so rural homelessness is to a large extent invisible in both academic literature and in policy and practice discussions, just as it is often invisible in discourses of everyday rural life. This article draws on extensive interviews with homeless service users and providers in three rural authorities in Wales to give a clearer sense of the nature and challenges of rural homelessness. The article documents and explores the very different strategies employed by those facing homelessness in the rural context, as well as those of rural local authorities providing them preventative and person-centred support. Analysis of the struggle of many rural households to remain in place, often at the cost of homelessness and lowered ability to access services, will have resonance in a range of contexts and have implications for policy makers and practitioners in rural contexts beyond Wales.
In this article, we analyse the social distribution of residential property in Norway post-1945 in light of the concept of social citizenship. Drawing on data from censuses and tax registers, we examine the social stratification of owner-occupation and housing wealth in a Nordic nation of homeowners. Our study shows that residential property and housing wealth is very unevenly distributed, and that the share of low-income homeowners decreased markedly after 1990. The implications of these findings are discussed with reference to three different conceptions of citizenship: the socio-liberal, the republican and the libertarian. Our main argument is that the falling rate of low-income owner-occupation constitutes an erosion of social citizenship viewed from the socio-liberal and republican conception of citizenship. This follows from theoretical arguments and empirical studies linking homeownership to positive welfare outcomes, such as civic engagement and social integration. The latter is arguably particularly true in some high-homeownership countries, such as Norway, where owner-occupation is the cultural norm and rental housing is associated with low quality and insecurity.
This article explores older owner occupiers in lower value properties who, having acquired their home through the Right to Buy (RTB) in the 1980s, are now experiencing housing-related challenges in older age. This article outlines the views and perceptions of older owner occupiers, social landlords, voluntary groups and housing organisations to explore the legacy of the RTB. Current and future policy challenges in the area include the differentiation of home owners, difficulties of selling property with low equity in older age and the relationship between health and housing. This article calls to widen the analysis of the long-term impact of the RTB to owner occupiers in lower value properties and notes that ‘ageing in place’ goes beyond looking at people’s current house to the linked housing choices available to them. We recommend that policy support be extended to older home owners to increase housing choice in older age.