Mike Moffatt: four ways to reduce household costs
Some practical suggestions for politicians
Four Pathways to Housing Affordability. Mike Moffatt, PLACE Centre.
This report focuses on practical ways to reduce household costs:
Rents and the price of new homes (16.5% of the average household budget)
Transportation costs (17.2%)
Utility bills (3.7%)
Property taxes (3.4%)
Insurance and maintenance bills (3.0%)
Moffatt makes four suggestions:
Lower homebuilding costs, which reduces rents and home prices. Lower the per-unit cost of land, by allowing greater density, removing parking minimums, and allowing smaller lots. Make it easier to get permission to build, by reducing the amount of red tape. Cut development charges. Improve productivity through new construction methods, e.g. by allowing factory-built housing.
Allow more infill housing, which reduces transportation costs, and makes better use of existing infrastructure instead of building new infrastructure, thus reducing the need for property tax increases.
Allow more energy-efficient homes, to reduce utility costs: single-stair buildings, larger floor plates.
Avoid building in areas exposed to natural hazards, like floods and wildfires, to reduce insurance and maintenance costs.
Discussion on the Missing Middle podcast:
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For a more comprehensive report, see the Blueprint for More and Better Housing. The advantage of the Four Pathways report is that it identifies actions which can be taken immediately, and where the benefits are clear.
Want to solve the housing crisis? Make it easier to build better neighbourhoods. Mike Moffatt, The Hub.