Affordable housing is the major challenge many communities face today. Limited availability and high costs are putting a toll on local economies and families. However, affordable housing not only provides accommodation but also has a positive impact on community development. When communities take the initiative to create affordable housing, it improves the social ties and economic growth of the country. In this blog, we will explore how affordable housing programs can drive community development.
What is Community Development?
The United Nations defines community development as a process where community members take collective action together and solve common problems. There is a myth that affordable housing lowers the value of a neighbourhood or does not provide any benefit for community development. This misconception about affordable housing developments spreads due to property values, negative stereotypes, and high real estate market competition. In fact, the lack of affordable housing negatively impacts community development.
The Gap Between Housing Supply and Demand in Pakistan
The lack of affordable housing is a challenge everywhere, not just Pakistan. According to a recent report by the World Bank, there is a high demand for affordable housing, mostly in the low-income segment. However, the current supply of housing is very low. Additionally, only 1% of the housing supply caters to the population with a US $188 monthly income.
Interestingly, most of the housing supply targets the upper-class community. This is one reason our low economy affects the community. The population is continuously shifting toward urban areas, driving more demand for housing in metropolitan areas. As a result, this trend favours increased community development.
The Role of Affordable Housing in Community Development
Community development reaches its high point when locals get access to stable and secure housing. The role of community development in affordable housing is critical. Also, affordable housing influences community development in many dimensions.
1- Stability
Affordable housing compliments the stable living environment for both communal and personal growth. Stability reduces stress, pressure, and negativity in a community. This leads to a tight-knit community and nurtures a conducive environment. Overall affordable housing will also provide enhanced educational opportunities for locals.
2- Diversity and Inclusion
Affordable housing supports individuals from various backgrounds. This inclusive approach strengthens social cohesion in the community. Moreover, a diverse community can create a more stable support network and will contribute to a more equitable society.
4- Economic Growth
Affordable housing contributes to the country’s overall economy. The construction and maintenance of affordable housing generate employment opportunities. This also helps local governments gather more revenue.
5- Environment Stability
New affordable housing projects are adapting to the community-wide environmental sustainability endeavours. These new projects in good housing societies use energy-efficient materials, water-saving fixtures, and eco-friendly practices.
Local Government and Community Development
Local government plays a very important role in creating community development. Now in Pakistan, local governments have more autonomy to address community needs and implement affordable housing scheme projects. Working on development projects can improve education, health, and affordable housing, promoting a good quality of living for everyone.
Citizen Participation and Inclusivity
Local regulatory authorities can work toward community participation by involving the locals in decision-making. Local input helps to foster a sense of community and empowerment. Also, the government can monitor what the citizens want and then conduct such projects to support them.
Public-Private Partnerships
One of the great ways to improve community development is to conduct public-private partnerships. This will help the government to utilise the resources for larger projects. Collaboration with local and international businesses will help to fill the gaps in funding and expertise.
Challenges to Effective Community Development
Many challenges are hindering the process of community development in Pakistan. Limited financial resources and political interferences are major challenges. Similarly, it needs transparency, improved government and better resources to overcome the challenges.
Key Learnings For The Affordable Housing Sector
Affordable housing is a vehicle of major transformation for low-income people. Here are some areas of improvement for the housing development sector.
Focus on Sustainable Communities
Many people find it tough to afford their basic housing expensive. Due to lack of affordable housing, whenever they move to a new place they have to bear more expenses. Affordable housing developments can consider access to social infrastructure and job opportunities to foster sustainable community development.
Improve Housing Developer Capacity
Affordable housing developers must improve their project engagement. This includes the accurate assessment of the clients to repay loans and ensure qualified house owners. So, this will help them to improve their pre- and post-project engagement.
Address Land Scarcity
The price of land is the main obstacle to housing affordability and requires prompt solutions to reduce poor communities. The regulatory and policy interventions around official minimum plot size can help improve land development.
End-User Financing Solution
The best way to access affordable housing finance for low-income clients includes utilising community savings, brokering new commercial bank products, and leveraging government subsidies. Patient advocacy is required to unlock affordable end-user financing at scale. The transparent evidence of the viability of low-income clients to repay loans and get instant house possession will help a lot.
Utilize Technology and Innovation in Construction
In this tech era, leveraging technology such as 3D printing, smart homes and modular construction, can help improve quality of the affordable housing. Innovation in construction methods will help community development to happen faster with sustainability. This will help the acting bodies to improve this sector. Technology advancements will help Pakistan to overcome the traditional barriers to affordable housing development.
Conclusion
Affordable housing is not just providing shelter to low-income families but also driving community development. By addressing the need for affordable housing, we can foster inclusivity, stability and economic growth. Local government and community developement play a vital role in reducing the affordable housing gaps. Public-private partnerships, sustainable development practices and citizen improvements can help improve the economy of the country.
