Housing model

Housing problems in America is a major social problem that traces its history from the 1930s. The housing issue is linked to various policies altogether with socio-economic and political factors. Housing model Housing in America is still a challenge despite the government’s efforts. A report by the US Department of housing disclosed close to 553,000 people in America could not afford shelter and were rendered homelessness. The report further grouped 65 per cent of homelessness people were emergency sheltered location whereas 35 per cent in streets, abandoned building while others in unfavourable human habilitation areas. Green & Wachter (2005) claim the rental houses were supposed to solve the issue of housing and make the premises more affordable to all Americans. In 1968, the amendment of the Housing Act set a goal of constructing 26 million houses across America for a decade.

The government proposed close to build 26 million houses for families and also individuals. The rental programme under section 236 incorporated in the National Housing was adopted. Later on, in 1974, section 8 of the new construction all together with the substantial Rehabilitation programme was crafted to improve section 236. While the 1968 plan that lasted for six years generated 544. 000 units. The projects failed to achieve the targeted objectives; in 2010, roughly 15,000 units were still covered from the 1961 plan. Von Hoffman (2017) revealed, there are close 150,000 houses still insured by FHA. Immediately the low-income rental programme was completed, some of the circumstances threatened and eventually ejected low-income owners from their homes. The groups enjoyed support from some members of the Congress aiming to officially preserve the subsidized houses for low-income earners.

The prepayments were banned in 1987 and 1987 and later on revived. The advocates and homeowners pushed for the preservations of affordable housing programmes. The US government adopted low-income policy across the US (Von Hoffman, 2017). The interests groups have always concentrated on shaping federal policies through passing or repealing the legislation’s programme in addition to influencing programme rules advocated by the Department of Housing. , (2010) argue, such policies are negatively affected since the state only construct houses for selling to low-income earners. The concept is not reliable, most of the low-income earners rely on rental premises rather than purchasing. The supply-demand issue is not influenced by the policies in Australia. Currently, the prices of houses in Australia is still a major challenge. For instance, in May 2018, a report by CoreLogic’s Housing Affordability disclosed the income ration dropped to 0.

Similarly, in the US, the issue of population and high rates high mortgages is the reason why rental prices and house ownership is a social problem. Since 1988, more than 40 million house units have been constructed with up to date facilities such as multiple bathrooms, air conditions and other facilities. However, high mortgages have made houses unaffordable for most Americans. The demand for houses is high but few young adults can afford to purchase. The demand for rental houses is high but low-income earners cannot afford to spend more than they earn to have a shelter. The US government just like their counterpart in Australia have drafted several policies to make houses more affordable for their locals. Providing basic and secondary needs for citizens is one of the main goals for most governments across the world.

Several plans are drafted to ensure social ideologies such as healthcare, security, education and housing are well executed and managed. In our case study, the housing plan in Australia and the US are not arguably not sustainable. The high interest of mortgages and income generated by low-income earners cannot repay loans nor afford rental houses. au/ausstats/abs@. nsf/mediareleasesbyReleaseDate/6496B4739650C270CA2581F3000E3B4D?OpenDocument CoreLogic (2018, Sept 5). “Housing Affordability Report out Today” CoreLogic. Retrieved from https://www. corelogic. M. The American mortgage in historical and international context.  Journal of Economic Perspectives, 19(4), 93-114. Joint center for housing studies of Harvard University. The State Nation’s Housing 2018. National housing policy in Australia: are new initiatives in affordable housing sustainable? International Journal of Interdisciplinary Social Sciences.