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It determines how much wealth an individual is having, it is also important both as a determinant and outcome of wealth inequality. However, for one to have…
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Instruction: Task: Housing Housing is an important topic as far as economics is concerned; housing plays an important role in economics is concerned. It determines how much wealth an individual is having, it is also important both as a determinant and outcome of wealth inequality. However, for one to have a good house he is required to have enough money which is determined by the amount he is paid. House ownership is a primary constituent of family circle wealth, and it comes with advantages not just in conditions of the cost of a home fairness itself, but in addition the tax reimbursement and inflation security associated with owning possessions. House ownership grants one access to opportunities for families such as neighborhoods with good schools, jobs and public services. In order for one to get good housing the amount of money he is paid becomes a factor. This essay will examine the trends in housing and the financial position of an individual in details.
There is a large gap in house ownership between different people which has continued to increase though barriers in homeownership for the minority groups were lifted 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 casual expansion of urban land which was traditionally professed as an significant way through which the poorest inhabitants of the urban centers got shelter. This has changed since most of the middle, and high-income households tend to buy land casually for housing. It is clear that those workers who are able to 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 buying better houses (Tally 22).
It is difficult for the middle-income people to purchase a house in the formal market. This is due to their low-income. This in turn forces them to construct low cost structures as their homes and expenses and can increase the budgets of the developer beyond the monetary capability of the scheme. The cost of land on the other hand, has increased greatly hence this leads to increase the housing gap. Those people who earn larger amount of money posses the ability to construct several houses, which they in turn they rent to the low-income earners at high costs
In most parts of the country it evident that the size of the land that is held by different households can be associated to the proceeds of the family unit. Higher-income families occupy bigger plots than their lower-income neighbors. Technology on the other hand plays an important role in increasing the inequality since those with skills in technology 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 the 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 asset.
Works cited
Talley, Ian. "Coming Labor-force Squeeze Could Push up Wages but Also Inequality." Wall Street Journal. Print. Read More
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