ggr 357 h1f geography of housing and housing policy n.
Skip this Video
Loading SlideShow in 5 Seconds..
GGR 357 H1F Geography of Housing and Housing Policy  PowerPoint Presentation
Download Presentation
GGR 357 H1F Geography of Housing and Housing Policy 

GGR 357 H1F Geography of Housing and Housing Policy 

92 Views Download Presentation
Download Presentation

GGR 357 H1F Geography of Housing and Housing Policy 

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. GGR 357 H1F Geography of Housing and Housing Policy  Session 9 June 16, 2008 The meanings of “home” and attitudes towards homeownership DR. AMANDA HELDERMAN

  2. Announcements Paper due this Friday before 5pm: • • Drop box @ Office of the Department of Geography • Both digital version (MS WORD only) and hard copy • Make sure it is clear that it is for Amanda Helderman and that it is term work for GGR357H1F Summer job/ hard to make the deadline? • You learned about this date on May 12. You have signed up for this course so should be committed to your education • You could turned it in earlier if Friday is inconvenient for you • E-mail digital copy • Fax hard copy: 416-946-3886, make sure it is clear that it is for Amanda Helderman and that it is term work for GGR357H1F • Late penalty 5% per day.

  3. Introduction • Many meanings of “home” • Many meanings of homeownership • Alternative meanings of the home… • …such as economic activities in the home • Societal developments (individualism) • Implications for the place housing takes in personal lives • Understanding the meaning of home in developing countries and for immigrants • Consequences for residential relocations, housing preferences, and search behaviour

  4. Meanings of home… Definitions of housing according to Bourne, Dieleman etc. • Physical aspects: shelter, bricks and mortar • Economic good or commodity: housing can be exchanged, has value • Investment good or asset (wealth) • Sector of the economy • Social or collective good: home base/ node in social networks access to other services • Building block of neighbourhoods and communities • Bundle of services 

  5. Bundle of services • Physical facility • Shelter • Consumption of services: public, schools, environment etc. • Location/ accessibility

  6. Housing services • Shelter from the elements • Value or wealth  equity for owners • Shelter from taxes (capital) • Accessibility to services (e.g. schools), work, neighbourhood • Social status • Rights to privacy, exclusion

  7. Home • Material dimensions • Spatial dimensions • Meaningful dimensions

  8. Material dimensions • Physical state • State of repair • Biological/ Chemical exposure • Costs

  9. Spatial dimensions • Immediate environment • Proximity to schools, recreation, health services, employment opportunities

  10. Meaningful dimensions • Permanence/ stability • Social status (housing tenure) • Prestige • Pride • Identity • Saunders, 1990 • Place to venture out into the world • Place of economic activity

  11. New functions of the home as a place for work or business (Ventakesh et al., 2003) • Activity Centre (household chores) • Entertainment Centre (computer games, TV) • Work Centre (telecommuting, working at home, home-based businesses) • Communication Centre (phone, E-mail) • Shopping/ Financial Centre (e-shopping)

  12. New functions of the home as a place for work or business • Family Interaction Centre (meeting place for household members) • Information Centre (obtaining info from media) • Learning Centre (e-learning) • THE NETWORKED HOME

  13. Societal developments • Cultural changes • Sociological changes: Individualism (increased autonomy of individuals, both in and outside the workplace) • Labour market developments • Longer working hours: increasingly difficult to combine work with household tasks for many • Status: longer work hours to make more money (rat race)

  14. Role patterns • Trade off families: negotiations about tasks in the household • Rigid families: traditional role patterns

  15. Labour market developments • Changing labour markets • Flexibility: increasing short term labour contracts • Not constantly participating in the labour market: sabbatical year, not always enough work in certain sectors of the economy • Increasing pressure on the job • Combining different tasks of dual earners • Flexible working hours, flextime • More autonomous approach to work • More self-employment (start in 50-85% of cases at home)

  16. Economic activities in the home • Start-ups • Limited costs, no search costs necessary • Limited risks, knowledge of the area • Easy to start, no search efforts necessary • Home as an incubator for businesses

  17. Historical approach • Before the industrial revolution, the home was in most cases the place where people spend both their work hours and their leisure time • During and after the industrial revolution, the home became the place where people solely ate and slept • The new millennium: fast growth of technological possibilities such as high-speed Internet making telecommuting possible

  18. Spatial implications of home based businesses • Home more strongly becomes the centre of the entrepreneur’s/ household’s daily urban living space • Work, recreation, social activities all have the home as the central node • The home is the starting point of many activities but also the place to venture out into the world to undertake various activities

  19. Hägerstrand Problem: many competing tasks, in household career and in labour career… • The home as the hub in a network of frequently visits nodes: work place, school, family, friends, shopping, recreation... • There are limits in time and space to what a person can do in a day and thus on a regular basis

  20. Hägerstrand Constraints who limit human activity in time and space: • Capability constraints (you can’t be in multiple locations at the same time) • Coupling constraints (combination of work, care and leisure time may be difficult) • Authority constraints (not everyone is allowed to go everywhere at any time: opening hours, segregation)

  21. Home based businesses as a solution to time and place pressures • Combining tasks made easier • Time efficiency of working at home (also a cost aspect in a way) • Limited travel time • Low housing costs for business (often a reason for starting a business at home)

  22. What type of businesses? • Activities that do not require that much floor space (indoors) Compare driving schools, other on-the-road • Many ‘invisible’ home-based businesses: book keeping in the attic • Amount of floor space use is correlated with ambition level and growth of the company

  23. What type of businesses? • Smaller average income than salaried workers • Often older households/ individuals • Duration of residence long • Business and personal services. Financial advice • Knowledge sector of the economy • Taxi drivers • Few have proper plans to grow beyond the home-based business, the situation seems to be born from the convenience of easily combining tasks inside and outside the home • Also many agrarians

  24. What do the homes look like • Great diversity in types of homes that house home-based businesses • Many are not recognizable as a business • Small software agencies who work for another companies may have a small sign on the building but nothing else • Galleries, nail studios etc who rely on their clientele to visit them, may be a bit more visible • If they are visible, they often also are situated in a highly visible location relative to roads and to other buildings

  25. Rules and regulations • Threshold levels: <30% of area home • No polluting activities in residential areas • Many older neighbourhoods are simply designed for residential purposes only (the legacy of rules and regulations from the past) • Not all government bodies are flexible enough to renew building permits where necessary

  26. Implications for planners • Diversity • Mix of functions within home and within neighbourhood; purposes should be complementary • Prevention of functionally segregated neigbhourhoods in urban centres • Social cohesion and turnover • Liveliness (social safety or at least a sense of safety) • Vitality • Better threshold population/ market for services in the neighbourhood

  27. Implications for developers and planners • Helpful for planning neighbourhoods? • Multi-functional building methods • Flexible building techniques (high ceilings, easy to make additions, moveable walls) • Multiple uses of space • Existing structure in neighbourhoods determine the extent to which home-based businesses are succesful: enough space for entrepreneurship, not just for residential functions • Tenure structure: enough property in private hands

  28. Implications for developers and planners • Synergy possible if there are meeting places for entrepreneurs: face-to-face • Service points • Time share offices (meeting customers) • Specific building styles of multi-functional homes? • Separate entrance for household members and clients? • Flexible rooms/ ceilings

  29. Implications for developers and planners • Individual design • Flexibility in design (family expansion or business expansion, continuously renewed building permits) • So far: demand from municipalities, not from entrepreneurs

  30. Location specific capital • Hinders home based businesses to be footloose • Suppliers • Sunk investments (machines, adapting home for business activities) • Friends, family, local suppliers • Personal business contacts

  31. Location specific capital • Keep-factors • Embeddedness (Granovetter, 1985) • Intangible assets: hard to take with you to a new place (RISK!) • Consequence: searching locally, minimizing risk. Relocation decision not only household decision but also a business decision!

  32. Neo-classical approach to entrepreneurship • Homo Economicus • Maximizing profit • Minimize costs • Perfect knowledge/ information • Maximizer

  33. Behavioural approach • Homo psychologicus • Decisions are made in an only partly rational fashion • Satisfier

  34. Satisfier • Home based businesses generally less satisfied with housing for company than businesses located outside the home • Hard to keep work and private separate

  35. Consequences for search and relocation behaviour • Only 7% of home-based businesses is looking to relocate within 5 years • Some studies report 20% are expecting to relocate within 2 years, only 10% have concrete plans (less than household relocation!) • Not many home-based businesses generally foresee a move in the near future • Entrepreneurs more often have housing reasons as a motive for moving than business reasons

  36. Relocation behaviour • If the plans to move are business decisions, entrepreneurs do not necessarily want to remain home based • Attachment to the home often prevents the business relocation plan to be carried out • More than half of all home-based businesses who want to relocate, want to stay home-based

  37. Relocation behaviour • Sunk investments (machines, adapting home for business activities) are assumed to represent location specific capital that is known to act as a keep factor • But specific investments in the home for the business generally do not make a business more likely to stay in the same place than other businesses who have not made such investments while household situation, children do! • Entrepreneurs demand few specific housing characteristics for their business: size!

  38. Relocation behaviour • A need for space to expand is a push factor • Housing characteristics may also be push factors • A small home, a rented home, an apartment all make relocation more likely

  39. Search behaviour • Home region is appreciated more than other nearby regions: neighbourhood effect • Where the entrepreneur is from may be the most deciding factor in deciding on a location for the business • Less search costs if entrepreneur focuses on his/her own region • Searching in own region minimizes risk • Starters are strongly dependent on home advantage: local external resources (friends, family, knowledge of suppliers etc.), does not automatically lead to optimal location choice

  40. Changes in search behaviour • Location advantages may change during the business life course • At the start, a company is less pre-occupied with the question where the business will locate and more with how to finance, the product, the market, rules and regulations, permits, and perhaps employees • Once started at home, the home often remains popular, even if the business (/household!) relocates

  41. In conclusion about home-based businesses • Location specific investments mostly play a role on the household level (schools children) and less on the business level (sunk costs) • Most want to continue as a home-based business after a potential relocation • This suggests that having a home-based business is a life style choice rather than an economic necessity • The characteristics of the home also are important: anchors in ‘neighbourhood economies’ seem to be owner-occupied and large enough to accommodate a household and a small business

  42. Developing countries • Extremely common to have a home-based business in many countries in the Third World • Informal-sector activities • Cooking, arts and crafts

  43. Home-based businesses in Third World countries • More emphasis on shelter • One in four families use their home for other activities than just shelter (economic!) • Many families only have one room at their disposal • Crowding is a common problem • Virtually all sectors are represented in the informal economy, except heavy industry • Female-headed households and larger households with older, less-educated heads are most likely to use their home for income generation • Important for immigration countries

  44. Rules and regulations in Third World countries • Also surprisingly many parallels when it comes to official zoning • In compound houses however, these are largely ignored because of the scale of the phenomenon and lack of enforcement • Gvts. deter movers from buying homes if it is known that they will want the housing for income generation • If home-based businesses were condoned and recognized in building codes and regulations, it would make it easier to build housing

  45. Many parallels between both worlds • Home-based businesses in the Third World also are most often based in larger homes, although quality of homes with home-based businesses are not as good as regular homes • Businesses are location specific • Life style choice/ Way of life • Decision to move involves not only household decision or business decision, but both!

  46. Meanings of homeownership • Both in the Western world and the Third World, home-based businesses and other such alternative meanings of the home are attached to owner-occupied homes • Stability • Long-term commitment • Build-up of equity

  47. Levels of homeownership (%) 2006 53.4 65.1 67.6 71.0 68.4 From census 1991, 1996, 2001 & 2006: Statistics Canada

  48. Meanings of homeownership • Approximately 68% homeownership in Canada in 2006 • Free market principle dominant in Canada, so important to discuss alternative meanings to homeownership from the ones we have discussed in previous sessions… • Which were…

  49. Individual advantages to homeownership • Building up equity from a home • Housing quality/ Neighbourhood quality • Customized aspects/ alterations • Control of individual housing situation/ independence • Continuity/ stability • Status • Emotional value

  50. Individual disadvantages to homeownership • Financial risk: housing market • Financial risk: labour market position • Responsibility for maintenance • Impedes residential relocations: • Financial commitment • Transaction costs • Sense of security, personal environment • Emotional attachment • Stable households