The housing fulcrum: Balancing economic and social factors in housing research and policy

Abstract

We discuss the pivotal role that housing plays for both social and economic outcomes. All people need to be housed, and housing circumstances help determine social outcomes, especially for vulnerable groups. We outline an analytical framework that treats housing as a dynamic system, incorporating the life‐cycles of both individuals/households and houses. Each is long‐lived; decisions impact on housing for decades. This approach is relevant to the development of housing research and housing policy. We illustrate the issues with reference to the relationship between rental yields and measures of deprivation across New Zealand. The surprising nature of this relationship has consequences regarding potential poverty traps and wealth disparities. While highlighting an important housing market issue, any policy response to this issue is complicated by the need to take account of the life‐cycles of both individuals and of houses, and by the long‐lasting impacts of decisions.