housing and the family
DESCRIPTION
This presentation was made in late 2011, and serves as an introductory and generic instruction on the benefits that housing brings to the American household and to the general economy as well. It was presented to a resource management class within the College of Family and Consumer Sciences at the University of Georgia.TRANSCRIPT
HACE 3000Housing and the Family
Andy CarswellTuesday, October 25, 2011
WHAT DO WE MEAN BY “HOUSING”?
Covers A Number of Academic Disciplines
Real Estate/Finance/Business Macro/Microeconomics Sociology Public Policy
HOUSING – AN HISTORICAL PERSPECTIVE
• 1950 Average sq. ft. < 1,000
• 2000 Average sq. ft. = 2,265
HOUSING – AN INTERNATIONAL PERSPECTIVE
• Square footage differences
• Land usage difference• Ownership differences• Social welfare
differences• Regulatory differences
REAL ESTATE AND ITS VARIOUS COMPONENTS
L and Im prov em en ts F ix tu res
R e a l E sta te
COMPONENTS OF LAND
• Air Rights
• Surface Rights
• Mineral Rights
OWNERSHIP RIGHTS
• Right to use the property
• Right to possess the property
• Right to exclude others from the property
• Right to dispose of the property
OTHER CHARACTERISTICS OF REAL ESTATE
• You Have a “Bundle of Rights”
• Involves Several Specialists Within the Industry
• Multiplier Effect
• Various Economic Characteristics
ECONOMIC CHARACTERISTICS OF REAL ESTATE
• Usually high-priced• Usually involves
borrowed funds• High search costs• Scarcity• Situs• Effect of surrounding
structures• Fixity
HOUSING VARIES ACROSS AND WITHIN CULTURES
• Form, Shape, Size and Construction
• Uses and Purposes
• Character of Building and Neighborhood
• Importance of Structure
• Amount of Actors Involved
IMPORTANT DISTINCTION OF TERMS WITHIN THE FIELD
• “House” vs. “Home”
• “Neighborhood” vs. “Community”
• “Household” vs. “Family”
GENERAL INFO ON AMERICAN HOUSEHOLDS
• Traditionally married couples; still comprises a majority of HH
• Non-family households gaining fast• Increasing #’s of single-person HH’s• Declining HH size (w/ accompanying increase in
structure size)• Increasing numbers of elderly households• Both members of traditional HH usually working
more
GENERAL INFO ON HOUSING MARKETS
• Not all the same
• In a constant state of flux
• Governments are important regulators of the local housing industry
How do we get information about households?
• U.S. Census of Population and Housing– every 10 years– attempts to collect information from every
resident of the U.S.
• American Housing Survey– every other year– follows a sample of roughly 50,000 housing units,
adding and deleting homes as needed
What is a home?
• Cultural concept
• Source of human comfort
• Community ties
Human Ecology Model
Social-CulturalEnvironment
Self
Natural Environment
BuiltEnvironment
Meets Needs
Needs can be ranked in order of their importance
Primary needs are physical in nature & have priority
Secondary needs are largely psychological or social—important for quality of life
Maslow’s Hierarchy of Needs
Self Esteem Needs
Self-actualization
Sense of Belonging
Security and Safety Needs
Physiological Needs
Conceptual Framework for Influences on Housing Choice
Household Type
AgeTypeSizeStage in life cycle
Life Style
Cultural orientation
Generational differences
Housing Norms
TenureSpaceStructure
QualityNeighborhood / LocationExpenditure
Housing Choice
Social Class
EducationIncomeOccupation
Housing Values
Micro and Macro Effects
• As we talk about housing choices, we can think about:– what influences individual households’
housing choices (micro level)– how changes in the U.S. population will
result in changes in the overall housing market (macro level)
Human Ecology and Housing Needs
Social-CulturalEnvironment
Self
Need for protection
from m
an & nature
Need for wholesomeself-concept
Nee
d t
o r
elat
eto
oth
ers
Need fo
r soci
al a
nd
psych
ologic
al s
timula
tion
Need fo
r
a se
nse o
f
place
or
roote
dness
Need for creative outlet
Need to fulfill
values
Natural Environment
BuiltEnvironment
SNAPSHOT OF AMERICAN HOUSING QUALITY (circa mid-1990s)
• Median size of occupied units approx. 1750 sq. ft.
• Roughly 700 sq. ft. per person• > ½ of units have >= 3 bedrooms• Only 2.5% considered “overcrowded”
ZELINSKY- “THE HYPOTHESIS OF MOBILITY TRANSITION”
• Mobility low in pre-industrial agricultural societies
• Mobility rises with industrialization• Mobility plateaus at a high level of industrial
development• Mobility fluctuates with economic cycles• Mobility decreases with home business
innovation
WHY DO DEVELOPED NATIONS VARY IN LEVELS OF MOBILITY?
• L-T and persistent historical patterns of moving
• Degree of government intervention/regulation of housing markets
• Number of urban centers• Age of population• Discrimination
Non-Monetary Advantages of Owning a Home
• You have more control over your space.• You have more privacy, including a private
yard.• You have more space.• You are free from restrictive leases.• You can gain a better sense of community.
Disadvantages of Owning a Home• There is no guarantee that your home’s value will
appreciate.• It is often more costly, especially if you move often. • It requires more money management skills.• You need savings for emergencies and periodic large
bills (such as property taxes).• It may be harder to move.• Upkeep can be a lot of work.• You may have to follow the regulations of a
Homeowner’s Association.