Question 1
What are the economic advantages linked to city density?
Today, many people reside in the cities, increasing the city density. This trend is more prevalent in several countries and has economic benefits linked to it. For instance, one of the economic advantages of city density is that it helps build more houses, thus reducing the massive use of land and high rent rates. Besides, it reduces the costs of rent and travel (Brueckner, 2011). Most people prefer living in the city/urban centers to reduce their travelling costs because of the available travel options. Moreover, it helps minimize the reliance on the use of private cars as many use public transport while others walk thus reducing the cost of transportation. Furthermore, since most people are not using cars while commuting, it helps reduce greenhouse gas emissions, and this is an economic advantage.
Secondly, city density is advantageous to the public health because it helps reduce medical costs. For instance, many people in the city prefer walking and cycling to their places of work because they live near them. As a result, this makes them healthy, thus saving those funds that could be directed to medical attention due to lack of exercises. In addition, it aids in plummeting pollution due to fewer carbon emissions thus improving people’s health. Furthermore, city density provides an opening to new business ventures, which is an economic advantage. Since the population is high in the city, there will be a demand for various amenities, and thus, many businesses will be created. Through these ventures, the state can collect revenues that can be directed to building the country or other useful programs to the citizens.
Apart from the earnings from the investments, cities provide different employment for the people. Therefore, city density will support an economically diverse nation because of the many people working, and this develops the economy (Brueckner, 2011). Moreover, due to the many employment opportunities, the taxes collected from the working people can be used to fund government ventures.
In essence, city density helps reduce transport, housing, and medical costs. Moreover, it helps in increasing the country’s wealth through taxes collected from the employed people and the many businesses in urban areas due to high demand for various amenities. Therefore, city density leads to an economic growth and a rise in the income per household because of the many opportunities available.
Question 3.
Rent control, rent subsidies, and income subsidies are used to improve housing affordability. Which is the better approach, by listing the advantages and disadvantages of each.
Improving housing affordability for the low-income families has been a contentious issue. However, fixing it has always been done through rent subsidies, rent control, and income subsidies. Through rent subsidies, many low-income families are housed. The government directs its funding for rental subsidies for low-income households. With the rent subsidies, citizens can afford housing irrespective of their social status (Dickson-Gomez et al., 2011). One of the advantages of rent subsidies is that it helps alleviate housing costs for people with low incomes. Secondly, rent subsidies guarantee an individual a secure rent payment (Hills, 2001). However, the main disadvantage of rent subsidies is that many people become too dependent on them and fail to work hard. In addition, there can be delays caused by a glitch from the government’s side, which might cause problems for the tenants and their landlords.
Through rent control, the government can afford every citizen affordable housing. Rent control laws protect tenants from the property owners. One of the advantages of rent control is that with these laws, the property owners are prohibited from raising the rent unnecessarily (Aurand, 2010). Additionally, they limit the amount charged for rent, thus making housing affordable for everyone.
Apart from the advantages, rent control has disadvantages. For instance, rent control restricts the mobility of tenants. Residents living in rent-controlled houses are discouraged from moving, and this might affect them, especially those who are changing jobs or have large families. Moreover, these tenants might end up staying in unrepaired houses because the property owners fail to make an incentive to exercise due care.
Income subsidies are given to low-income families for their housing needs and to support their children. Income subsidies assist families in housing and feeding their people without much struggle (Hills, 2001). One notable disadvantage of income subsidies is that many people become too dependent on them, and they forget to search for better jobs to shelter and fend for their families.
The best approach to improving housing affordability is through rent control. With the rent control laws, the government will control how much the property owners charge their tenants. In addition, rent control offers protection to the tenants, and this means, landlords cannot unlawfully evict them from their houses. Therefore, it is the best because the tenants are protected as well as their cost of housing is affordable because of the restricted rent increase.
References
Aurand, A. (2010). Density, Housing Types and Mixed Land Use: Smart Tools for Affordable Housing? Urban Studies, 47(5), 1015-1036.
Brueckner, J. K. (2011). Lectures on Urban Economics. Cambridge, MA, USA: MIT Press.
Dickson-Gomez, J., McAuliffe, T., Convey, M., Weeks, M., & Owczarzak, J. (2011). Access to Housing Subsidies, Housing Status, Drug Use, and HIV Risk Among Low-Income US Urban Residents. Substance Abuse Treatment, Prevention, and Policy, 6(1), 1.
Hills, J. (2001) Inclusion or Exclusion? The Role of Housing Subsidies and Benefits. Urban Studies, 38 (11), 1887-1902.
