Inequality in Payment and Housing - Essay Example

House-ownership grants one access to opportunities for families such as neighborhoods with good schools, jobs, and public services. For one to get good housing, the amount of money he is paid becomes a factor. This survey will examine the trends in house inequalities and the financial position of an individual in detail.

The constant gap in house ownership rates between whites and black has continued to increase through barriers in homeownership for the minority groups were lifted a long time ago. The current housing policy now targets minority homeownership with the specific intention of closing the gap in house ownership among different groups. The informal development of urban land was traditionally perceived as an important way through which the poorest residents of the urban centers got shelter. This has changed since increasingly middle, and high-income households are buying land informally for housing. Those workers who can learn new working skills especially in technology will benefit from higher salaries. But on the other hand, those who are used to carrying out routine jobs which can be handled by computers and robots will be competing with few jobs or will be pushed into low-skill jobs and hence it will be difficult for them to afford to buy better houses (Tally, 22).

Opportunities for middle-income households to purchase a house on the formal market are limited. Those who come from families with the low-income struggle to construct low-cost housing though this is hindered by fluctuations in the price and availability of raw materials which increases construction time and expenses and can stretch the budgets of the developer beyond the monetary capability of the scheme. High monthly costs in both the rental and ownership markets compared to low land prices have encouraged middle-income households to seek shelter through informal channels. Growing demand for informal land has thus placed pressure on supply, resulting in rising land prices, effectively reducing accessibility by lower-income families. It is not only the presence of middle-income households alone that has affected the supply and availability of land but also the behavior within the market has had a profound impact on formal land supply and its availability.

In most parts of the country, it is evident that the size of the land that is held by different households can be correlated to the income of the household. Higher-income families occupy larger plots than their lower-income neighbors. Technology on the other hand plays an important role in increasing inequality since those with technology skills are paid better than those without those skills. It has been generally been recognized it is the rentiers who are grabbing a larger share of land. Housing has become the biggest source of rising inequality. Policymakers should, on the other hand, try to reduce the planning restrictions which by inhibiting new construction permit homeowners to receive such large profits on assets.