Population Boom Pushes US Housing Industry to Innovate - Essay Sample

Introduction

Over the years, the population in the United States have been increasing tremendously due to immigrants who admire to live in the US and end up acquiring citizenship and the birthrate increase. As a result of the housing industry has been put under much pressure as it tries to accommodate the ever-increasing population in the United States, this has forced the government to seek for ways of coming up with modern houses which can accommodate a larger number. To find a new way of developing the housing industry, the government has gone an extra mile of getting information from other developed countries like the United Kingdom (Lawyue, 2016). The UK was facing the same menace, but over the years, they have changed the state of the housing industry in their country.

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From the sought information on housing in the UK, it is evident that there are differences in the UK housing industry and that of the USA. In the United States, since 2008, the housing affordability has been declining continuously (Young, 2019). It is projected that, as the economy of the US continuously remains stable, it will attract a 3.1% rise in the price of houses and 1% rise in the transaction within the housing industry. As opposed to the UK housing industry, the prices of houses have been in decline over the years since the Brexit vote in 2016; this decline has been attributed to the technology involved in real estate and innovations. Furthermore, the materials utilized in the construction industry in the UK have its prices being affordable as compared to the USA, where construction materials are overpriced.

In the United States, the housing industry receives little support from the government; it is approximated that the government funds less than 2% percent of the housing projects in the United States, with this in place, the cost of housing is expected to surge continually up (Lawyue, 2016). In the UK the government funds approximately 16% of the housing projects, with such government involvement, it is projected that the housing in the UK will experience a decline in the prices of houses hence more citizens will have a comfortable home where security will be guaranteed.

In the United States, the study has revealed that most of the middle-income earners are facing a challenge in paying the housing rent in Newark. This menace has been solved by encouraging the construction of houses near the premises where the middle-income earners live; this has been done to ensure that the transport cost is curbed hence it will be easy for them to pay rent (Wirthman, 2018). For example, architect Richard Meier designed Newark Teachers Village to reduce the cost of transport incurred by teachers, and this method has been adopted in other states in the United States of America. In the UK, the government has always been in the forefront to ensure that, the middle-income earners get affordable housing by ensuring that the taxation in the housing industry is reduced to a manageable level and the mortgages availed to the middle-class citizens at an affordable rate.

Despite the existence in the difference in the housing sector between the USA and UK, there exist similarities. Both in the UK and USA, the governments have put more emphasis on the privatization of the housing industry. In this case, the government has reduced taxation on the construction materials; this will attract investors to this sector hence increase in the number of houses build (Lawyue, 2016). Furthermore, the government increases funding in the sector through the provision of the government of government architects and surveyors to design affordable and cost-effective houses in construction.

Conclusion

In conclusion, the housing industry is facing intense pressure globally due to the increasing population. Due to this, the USA government have been trying to find the solution to this menace and have had to seek methods of curbing it from other developed countries like the UK. Providing affordable and secure housing to citizens is key to the development of a nation.

References

Lawyue, M. (2016). Urban Wire. Housing and Housing Finance. Retrieved from https://www.urban.org/urban-wire/what-united-kingdom-can-teach-us-about-affordable-housing

Young, J. (2019). The London and Economic. A Comparison Between the British And American Real Estate Markets. Retrieved from https://www.thelondoneconomic.com/property/a-comparison-between-the-british-and-american-real-estate-markets/18/04/

Wirthman, L. (2018). 3 Great Initiatives Revolutionizing Affordable Housing in The U.S. Retrieved from https://www.forbes.com/sites/nuveen/2018/10/03/3-great-initiatives-revolutionizing-affordable-housing-in-the-u-s/#6c11857d4dd4