Strategies for Affordable Housing (Case Study of Murree City)

Abstract

Globally affordable housing provision is a major challenge for the Govts, particularly in the developing countries. Population growth and urbanization are key factors behind the growing demand for affordable housing. Pakistan having 191.71million population is facing acute housing shortage of about 09million units with annual demand of 0.7million units with growing housing supply-demand gap. The housing deficit for low income households is about 4.5 million units, with annual addition of 150000 units. Most of the housing projects developed by private developers meant for higher profits and targets higher & higher middle income groups. Murree city has been selected as case study. The data was collected through primary sources by household questionnaire and stakeholder's interviews, while secondary data was collected through public deptts., reports, journal articles etc. The data analysis was done using SPSS software and correlation test was applied. SWOT analysis and need assessment was carried out for the provision of affordable housing. The present population of Murree is 28500 persons and housing units are 3000, with housing deficit of 1700 units. Most of the households are living in overcrowded, low quality housing conditions, with small size units, higher household size, low education levels and substandard infrastructure facilities. The data analysis on economic variables revealed that, most of the respondents are unable to save for upgrading and construction of their units with low income levels. The land and unit cost is too high for them to afford. The correlation analysis indicates that affordability has highly significant relationship with socioeconomic variables i.e, plot/unit size, plot/unit cost, and distance to job. Moreover household size, income level, and non-housing expenses also has significant correlation with other variables involved in analysis that affect the affordability levels. xvii As per the public satisfaction survey analysis, the households have expressed their extreme dissatisfaction over the poor performance of housing, building, land and finance department. The respondents have expressed average satisfaction over the housing facilities, including location, unit size, and accessibility to facilities but highly dissatisfied over the cost of unit/building materials. Survey analysis also show that shortage of affordable housing & high rent is mainly attributed to lack of initiatives from the Govt, excessive land cost and tourist influx, ban on construction. In SWOT analysis, by managing weaknesses & threats, the barriers to affordable housing could be managed. The need assessment of the households depicts that majority of the respondents need an affordable housing unit, with low price plot/unit, housing finance with flexible terms, and proximity to facilities. Poor housing policies, ineffective landuse &building regulations, low income levels, higher land & construction cost, ban on construction in Murree, speculation, lack of access to housing finance are the major challenges for shortage of affordable housing. The land registration &titling system is poor, with cumbersome procedures. On the basis of data analysis, literature review and stakeholder's interview, to address the major challenges, a framework was developed for the provision of affordable housing. It has been recommended that the proposed framework to be adopted for developing affordable housing. Land registration/titling system to be computerized, managing speculation by regulations and made accessible to poor. Housing finance system to be made efficient with flexible terms. Landuse & building standards to be upgraded with incentives to the private developers and building industry for low-cost units and materials.