Market Housing & Non-Market Housing

"Decent, affordable housing should be a basic right for everybody in this country. The reason is simple: without stable shelter, everything else falls apart." - Matthew Desmond

By far, Market Housing is the most dominant form of housing in free market economies. “The Non-capitalist Solution to the Housing Crisis” by About Here (Watch at the bottom) on YouTube (16.3min), provides an explanation for why this is. When Governments stopped building social housing, the free market filled the gap. It will take tremendous political will on the part of any government to return to a policy of non-market housing. At the end of the day ‘housing is for people not profit’ stated by the commentator in the video above.

I agree 100%. 

Microsoft Copilot lists advantages and disadvantages for both forms of housing.

Market Housing

Definition: Market housing is developed and sold by private developers or individuals in the real estate market. Prices are determined by supply and demand, and buyers purchase homes based on their financial capacity.

Advantages:

• Flexibility: Buyers have a wide range of choices in terms of location, design, and price.

• Incentives for Developers: Profit motive encourages innovation and quality in housing development.

• Market-Driven: Prices and availability are influenced by market conditions, which can lead to competitive pricing.

Disadvantages:

• Affordability Issues: High demand and limited supply can drive up prices, making it difficult for low-income families to afford homes.

• Speculation: Market housing can be subject to speculative buying, leading to price bubbles and instability.

• Inequality: Wealthier individuals have more access to desirable housing, potentially leading to social segregation.

Non-Market Housing

Definition: Non-market housing is provided by the government or non-profit organizations, often at subsidized rates or for free. It aims to ensure that everyone has access to affordable housing, regardless of their financial situation.

Advantages:

• Affordability: Non-market housing is typically more affordable, making it accessible to low-income families and individuals.

• Social Equity: Helps reduce homelessness and housing insecurity by providing stable housing options.

• Community Focus: Often includes community services and support, fostering a sense of belonging and support.

Disadvantages:

• Limited Supply: Non-market housing is often limited by government budgets and resources, leading to long waiting lists.

• Quality and Maintenance: Depending on funding, the quality and maintenance of non-market housing can vary.

• Bureaucracy: The process of obtaining non-market housing can be lengthy and complex due to administrative procedures.

Both market and non-market housing play crucial roles in addressing housing needs. Market housing offers flexibility and innovation, while non-market housing ensures affordability and social equity. A balanced approach that includes both types of housing can help create a more inclusive and sustainable housing system.

Below is the full video mentioned earlier. Share your thoughts. Do you agree?