Housing issue: Young people in the West are unhappy about the housing crisis
Young people in developed countries with high incomes consider the lack of affordable housing and high living expenses to be the main problems. The housing issue affects the economic, social and psychological well-being of people. The authorities in these states are afraid of being defeated by populists who propose to solve the problem. Details can be found in the Izvestia article.
The main thing is the economy
Gallup analysts conducted a study that revealed what people in different countries of the world are most concerned about. The answer was the same almost everywhere — the economy and the problems associated with it. This is the opinion of 23% of adults in 107 countries. Many are also concerned about issues related to work, government policy, and security. At the same time, health care, migration, education, development, ecology, and infrastructure are of concern to an average of 3 to 1% of people.
Young people are particularly concerned about the state of the national economy, and, paradoxically, in high-income countries. On average, 34% of people aged 15 to 34 consider the issue of welfare to be the biggest problem facing the country. 33% of people aged 35 to 54 and 30% of people aged 55 and older think the same way.
Young people in New Zealand are most concerned about this topic — 49% of the respondents. The situation is similar in Britain, Canada, the USA and Australia.
The macroeconomic indicators in these countries are quite high, but for local millennials and zoomers, these figures do not really matter. According to them, it's all about the impending housing crisis. In most cases, young people in these countries rent housing, dreaming of buying their own apartment, but this cannot be done, since the lion's share of income goes to pay for basic needs.
Currently, only 25% of young people believe that there is affordable housing in their countries. This indicator has dropped significantly over the past ten years.
GDP is growing, but the standard of living is falling
It turns out that on paper the economy is growing, but young people believe that the country's economy is failing them, as rising prices for housing and basic services outstrip income growth.
This study makes it clear that economic indicators — the level of GDP, inflation, and investment inflows, which are often targeted by the leadership of countries, do not reflect the financial pressure that people experience in everyday life.
The EU countries, as well as Australia, Canada and New Zealand, are experiencing an acute housing shortage. Over the past few years, according to a Eurostat report, property prices in the EU have increased by more than 40%, and rents have soared by several tens of percent. In this regard, the share of housing costs in the family budget is steadily growing — more and more households are spending up to half of their income on renting an apartment.
The construction of new housing is also not keeping pace with the needs of the population: in Australia, the number of permits for the construction of new apartment buildings has approached a 12-year low, and due to a shortage of skilled workers, existing projects are lagging behind schedule. There are similar problems in Britain.
All this provokes a number of social problems. According to The Guardian, in The Netherlands, many couples postpone their wedding and the birth of children due to a shortage of apartments, and after parting they are sometimes forced to live under one roof. Housing shortages are also being faced in Germany.
The housing issue hurts not only the economic, social, but also the psychological well-being of citizens. According to the RRASMQ survey, the housing crisis has become the most common cause of mental health problems in Canada.
The time bomb
However, politicians are much more concerned about other problems — they are afraid that right-wing politicians will take advantage of the situation with the discontent of the population due to high real estate prices.
As the last European Parliament elections showed, there is a loss of confidence in the old systemic parties and centrists. Against this background, populist and radical forces are becoming more popular.
For example, support is growing for left-wing populist parties offering large-scale social housing programs and tight rent controls, as well as right-wing populists who are trying to link the housing crisis with the growing number of migrants.
For young people, it is not abstract GDP growth that is more important, but specific indicators: the ratio of income to housing costs, access to education, and the quality of public services. As a result, politicians dealing with economic issues in the country are beginning to lose the trust of the population because they cannot solve their problems.
For the first time since the post-war economic boom, young people in developed countries have a high chance of living a life worse than their parents financially. In this case, politicians who promise not a growth economy, but a welfare economy, will receive support.
So the fears of young people related to the state of the economy and the housing crisis in developed countries may eventually lead to an increase in protest voting against systemic parties and political instability. This is especially true in those countries where the authorities will not be able to offer something convincing to solve the housing crisis and improve the well-being of citizens.
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