The value of housing to welfare:Reflection from East Asian experiences

Misa IzuharaSchool for Policy Studies, University of Bristol

Housing Studies Association Annual Conference, York, April 2014

Introduction

Linking home ownership to welfare

Housing as a platform of wealth accumulation‘Asset-based welfare’Home ownership aims to promote ‘widening access and social integration’From the ‘social project’ to the ‘economic project’Household assets = housing assets: difficulties and potential for equity releaseImportance of individuals attitude

The East Asian context

The East Asian contextJapanAsset-based welfare pronounced

Post-bubble economy (1990 on)

From ‘corporate paternalism’ to neoliberal policy reforms

Post-growth society

The East Asian contextJapanAsset-based welfare pronounced

Post-bubble economy (1990 on)

From ‘corporate paternalism’ to neoliberal policy reforms

Post-growth society

ChinaFrom planned economy to market-

oriented economy Parallel processes of privatisation

reforms and commercialisationFrom low-level, universal welfare

provision to cash-driven system

The East Asian contextJapanAsset-based welfare pronounced

Post-bubble economy (1990 on)

From ‘corporate paternalism’ to neoliberal policy reforms

Post-growth society

SingaporeThe ‘soft-authoritarian’ state

The state control on housing and welfare provision

Welfare depends on housing

The Central Provident Fund; the Housing and Development Board

ChinaFrom planned economy to market-

oriented economy Parallel processes of privatisation

reforms and commercialisationFrom low-level, universal welfare

provision to cash-driven system

Institutional mechanisms

To consider the ways in which housing assets can be turned into cash/cash flow to use for welfare

‘Immobile assets’ – need help of institutions? Market development: China, Japan

Non-market approach: Singapore

Institutional incentives: e.g. access to long-term care is not means-tested (Japan)

Cultural barriers: Family v individual assets, attitudes

towards the use of assets, perception of risk

Whose welfare?

Process and impact of intergenerational transfers Different level and direction of the flow of resources:

China v Japan

Parents are a key source of welfare Timing: Tax incentives to encourage early transfers (Japan)

Pooling resources: increasing ‘interdependency’

Is housing an intergenerational project? Are children welfare resources?

Widening social divisions

The equality of opportunity v outcomes Commodification of housing, neoliberal policy

reforms, housing price volatility produces wealth divisions

The ‘housing asset rich’ = the ‘welfare rich’: exclusionary than inclusionary welfare?

Family wealth is greater source of social stratification

Gender divisions

Concluding comments

Micro-macro interaction: need better balance between individual accumulation and social re-distribution?

The active ‘role of the state’ in asset-based approaches: more pragmatic

Volatility in the housing market: how can housing values be maintained?

Families counter-weigh asset-poor, income-differentiated younger people