World faces $650 billion housing problem

CNBC ^ | 23 October 2014 | Ansuya Harjani

[Lorianne]

staggering 330 million urban households around the world live in substandard housing or are so financially stretched by housing costs they forgo other basic needs like food and health care, according to McKinsey.

Urban dwellers globally fork out $650 billion more per year on housing than they can afford, or around 1 percent of world gross domestic product (GDP), McKinsey estimated in a new report, highlighting the enormity of the affordability gap.

More than two-thirds of the gap is concentrated in 100 large cities. In several low-income cities such as Lagos and Mumbai, the affordable housing gap can amount to as much as 10 percent of area GDP.

[WVKayaker]

Do you live in Philipines? One FR said that there is one area of the Island not prone to bad storms, and he has a place there.

I arrived last year (Feb 2013) and lived in Ormoc City, Leyte until October 23rd. I decided to move to Davao City (on the Island of Mindanao) which is large city of 2+ million and has the largest land area of any city in the world (so I have heard!).

One week after I made my move here, Typhoon Yolanda hit Leyte and the house I had rented there was completely destroyed. Many of the residents there are still unable to rebuild, as their homes and their employers homes and businesses were destroyed also. Many have tents, or are living in bamboo "nipa" huts, but had lived in hollow block constructed homes which are largely substandard and unable to resist such storms.

Here, we have resin, but not the big winds of the typical typhoon (hurricane in the Pacific) which usually go much north of here.

Philippines uses a "Ph Peso as their currency and as of today the exchange rate is 44.79 per US dollar. That is one of the main reasons I moved here, since my SS pension (I'm now 67) doesn't go far in the USA today. I have a three bedroom house, a full time housekeeper (2500PhP monthly salary + room and board), satellite Tv (with FoxNews), high speed internet, and eat well. I also have sweet 30 year old Filipina wife! I have a Honda Scoopy scooter and use public transport. It cost about $2-3 for a taxi around town and the Jeepnies are 8-15 pesos depending on distance traveled!!! The Jeepnies are usually packed though, cheek to cheek!!!!!!

[SharpRightTurn]

“dwellers globally fork out $650 billion more per year on housing than they can afford”

Well, I do my part, not only by not living in an urban area, but also by staying as far away from them as possible.

[SharpRightTurn]

“And if one more person tells me something is “for the children” I may vomit.”

“Give back” also causes serious retching at my (non-urban) house.

[dalereed]

It’s their problem and I’m not willing to put up one cent to change it.

It’s up to each individual to make their own way in this world.

I’m for eliminating all forms of welfare!

[Chickensoup]

Of course, there are some awful and unclean slums as well and the lack of clean water and sewers is a problem.

But basic shelter and sanitation is doable by people in any country if they get their act together. It’s not that hard and not that expensive.
_____________________

Of course like the hunger problem, this housing problem is mostly man-made and exacerbated by bad laws, bad planning and horrific graft and stealing.

[Myrddin]

Housing is an individual issue. Not a city, county, state, nation or world. Solve your own damn problems.

[Myrddin]

And spartans...

[Kackikat]

Sounds like you found your place...congrats.

[Grams A]

“Give back” also causes serious retching at my (non-urban) house.”

Was at grandson’s cross country meet this week which was held at one of the safest areas in Houston. Had a Black rent-a-cop working security, although the most dangerous thing around might be a dog wandering away from the nearby doggie park and chasing the kids. He and I talked some about track and sports for kids and I mentioned the AAU Junior Olympics and talked some about the parental involvement with the kids who participate in that event. Security guard has younger brother who received a football scholarship to Oklahoma University and guard was quite unhappy that the school makes so much money off the football program which they don’t share. I brought up the issue of the value of a free college education, books, housing and meals and he said that was all “nice” but he felt they needed to “give back” some of the money they made off the players so they could have the things they really needed. He didn’t stick around to hear my rebuttal nor did he walk anywhere near where I was the rest of the afternoon.

[stephenjohnbanker]

” Man, has there ever been a more time when there was a more concerted effort to bilk the U. S. Citizen.”

Never!

[DoughtyOne]

Heh heh heh, so someone was able to get meaning out of that botched sentence.

[Lorianne]

That’s not necessarily true. Government in extremely involved in regulation of housing. You cannot buy a piece of land and build what you can afford with the idea of improving it later.

All people could be housed adequately (not elaborately but adequately) if there were fewer government restrictions.