More Housing or Better Housing?
Discover insights about more housing better housing? and their relevance in today's dynamic business environment.
In Mexico, the discussion about housing production usually focuses on quantitative aspects, such as the number of homes that a government intends to build during its administration. But the issue of housing quality is rarely addressed, a crucial aspect to leverage its potential as a development platform.
A recent example is the federal government’s announcement, which stated its intention to build one million homes during this six-year term. However, it did not detail, for example, where they will be located or what their qualitative characteristics will be.
In this context, in recent decades, millions of homes have been developed in Mexico. But many of them are of poor quality: minimal living spaces, materials of low durability, locations far from jobs and services, and so on. Partly for this reason, there are more than 6 million vacant homes, many of which are abandoned.
Therefore, there is a need to produce more housing, but, above all, better housing. To do this, it is essential to move from a purely architectural vision of housing to a more comprehensive one, which conceives housing as a platform to access better opportunities. In this sense, quality is a fundamental factor.
But how does housing influence people’s development? What does the international evidence say?
Improved Health Conditions
In Mexico, replacing dirt floors with concrete in homes has reduced parasitic infestations by 78%, diarrhea cases by 49%, and anemia prevalence by 81% (Cattaneo et al., 2007). This highlights the importance of the quality of construction materials.
Access to basic services is also essential for health. For example, in India, it is estimated that the prevalence of diarrhea in children under five is 21% higher in households without a direct connection to potable water (Jalan et al., 2001).
In addition, overcrowding is related to a higher risk of disease transmission, as the reduction of living space increases physical proximity between residents and limits ventilation. In São Paulo, Brazil, overcrowding has been associated with a 2.5-fold increase in the incidence of respiratory infections (Cardoso et al., 2004). Expanding living areas can help mitigate this problem.
Access to basic services is linked to the educational performance of children and adolescents. In Bangladesh, a study (Khandker et al., 2009) found that the installation of photovoltaic systems in homes in communities without access to electricity increased the study time of young people, improving their academic performance.
On the other hand, overcrowding can interfere with the ability to learn due to excessive noise and lack of privacy, factors that affect concentration. In some communities in France, it is estimated that 59% of adolescents who live in homes with more than one person per room experience delays in their school performance (Goux et al., 2005), suggesting that the size of homes can affect academic performance.
Greater Access to Jobs
The access to services such as electricity can facilitate access to jobs, especially in households in poverty. For example, in Nicaragua, electrification projects have increased the likelihood of women working outside the home by 23% (Grogan et al., 2013).
In India, access to electricity in the home has increased the monthly income of the poorest households by 17%. This is because electricity allows people to devote more time to productive activities (Samad et al., 2016)
Lower Transportation Costs
The location of homes influences a household’s monthly expenses. For example, living far from areas with a higher concentration of jobs and services increases travel distances and times, which in turn increases transportation costs.
A study (Libertun, 2018) indicates that, in Puebla, the monthly transportation expenditure of a household located on the periphery represents 34% of its total expenditure, while a household in a more central area spends around 16%. This can limit a household’s spending in other areas such as education and health. For this reason, the location of the home is a fundamental factor.
More Housing or Better Housing?
In Mexico, it is estimated that there is a quantitative deficit of 591,000 homes, which corresponds to the number of units needed to meet current demand. In addition, it is estimated that, on average, around 22,000 homes per year will be required to meet additional demand by the year 2050.
On the other hand, the qualitative deficit amounts to 8.9 million homes, which reflects deficiencies in terms of materials, access to services, and living space in existing homes (Conavi, 2022). Therefore, to meet the housing needs of the population and leverage the potential of housing as a development platform, it is not only essential to build more homes, but also better homes.
