Housing crunch has become a prevalent situation for city-dwellers. It affects both directly and indirectly everyone residing in the town by worsening their living standard and overall cityscape. Therefore, it is imperative for the authorities to crack down on this issue, not pending business’s intervention, because revenue-generating operations have little incentives to take in the government’s responsibility.
Firstly, bland state of housing market cannot be attributable to companies whose main interests are in making profits. Even though the lack of building is conspicuous, it was not popular in private-controlled regions. Adversely, these regions are usually rife with luxurious buildings which are unattainable by most people. However, the fact is beside the point since the majority of their constructions are in the outskirt of the town. If the solution to the crunch rests on these private companies, they will not be able to guarantee affordability of these projects. For instance, the vast countryside in my country is full of heavily-invested projects; however, such plans to build all-mods-cons flats often backfire due to falling short of funding. Meanwhile, the costs of completed flats skyrocket, thereby not eliminating the dire problems.
Furthermore, the government has adequate tools, will, and responsibility to combat the housing shortage. The budget, largely generated from taxation, must be designated to create more suitable-priced places. Having the authorities on their sides, people will enjoy not only better places of residence but also other relating infrastructures. As a neighborhood grows, it attracts investments to set up schools, hospitals, and so forth. People can also receive national housing grants, which are generally at lower interest rates than those of commercial banks. With the state being the sole investor, nationalized companies will be involved to assist the implementation of necessary facilities. Although it draws little revenue, thousands of lump-dwellers are put under reliable roofs and the quality of life is enhanced. In addition to improving the living standard and cityscape, better housing also shields people from dangerous incidences, such as the fire which comes from a overcrowded mini apartment blocks in Ba Dinh District last May.
However, the state’s involvement is only a short-term solution as the funding can tip the budget for other sectors. Furthermore, insufficient monetary resource will inevitably result in low-quality buildings. On the other hand, the private housing firms also have to bear the brunt of deserted heavily-devoted flats. To tackle the drawbacks of separated activities in the sector, they should co-ordinate to produce more desirable achievements.
In conclusion, the state’s role in regulating the housing market is superior to that of business. Nevertheless, the construction of accommodation can be enhanced by the engagement of both public and private institutions.