Literature review informal settlements. Chapter 2: Informal housing markets: A review | Minimum Cost Housing Group - McGill University

In addition, rental sub-markets may play a crucial role boosting micro-scale economy at neighborhood level. They indicate that the whole process of housing production in informal settlements is, at the same time, a slow process of housing commodification95, Some early reports on the phenomenon appear in the context of discussions over squatter settlements and self-help as universal solution. There are reports of large informal rental sub-markets also in El Salvador and Zambia.

Considering that there is no monetary transaction, some may dissent with the inclusion of shared housing as a sub-market.

2.1. Defining housing markets

Involving scholars, governments and international agencies, the debate has passed through different stages: A review In the last decades the problem of the so-called informal settlements in developing countries has been researched, discussed and addressed in a variety of ways. Rental sub-markets provide a variety of choices for low income groups.

Although analyzed separately for clearer conceptualization, rental and shared sub-markets conform a duo that caters the demand for non-ownership alternatives for the lower strata of population. Literature segments housing markets according to different indicators. In informal sub-markets the 'consumers' are the poorest of the poor.

The effect is to narrow the range of housing alternatives, which leads inevitably to a decline in the living standards of the poor When small landlordism predominates, landlord and tenant have similar social-economic background and a quite cordial relationship. Datta in Literature review informal settlements, Botswana, finds that women outnumber men as landlords.

Chapter 2: Informal housing markets: A review | Minimum Cost Housing Group - McGill University

In Jakarta, research by Marcussen shows an increasing trend in number and variety of rental options in peripheral kampungs. Informal housing markets: Because home-ownership is becoming more difficult and renting is likely to become the predominant form of housing in most Third World cities, housing policy might well focus more in promoting rental markets.

Rakodi50 in a comprehensive review of housing sub-markets, remarks that housing policies must be addressed concurrently to all different sub-markets, literature review informal settlements should not consider any segment in isolation. In Bangkok, Angel and Amtapunthin a study mainly concerned with the controlled market, identify five components in the low cost rental system: Also in Bangkok, De Wandeler et al.

As most renters, sharers are at an early stage in their life cycle, when flexibility counts most. Most literature agrees on the lohri essay in written in punjabi language role of informal land sub-markets in the supply of ownership alternatives for the poor. First, the rapid urban growth rate combined with political instability that originate continuously changing scenarios. A frequent response to this dichotomy is to define the rental-shared sub-market as a range of shades between the two cii 930 coursework Aina30; Ahmad Schoorl, Van der Linden and Sheng cover in detail environmental and dwelling issues, as well as the functioning of informal sub-markets in the bastis of Karachi.

The suppliers Whether due to personal decision or unavoidable need, the demand for non-ownership alternatives is steady. On the other hand, Edwardssuggests that even in the self-help periphery, some tenants "value the flexibility of renting and shy away from the responsibilities and commitments of ownership.

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Rentals, good or evil? Land sub-markets Aware of the influence of the availability of land in informal housing, many researchers prompted greater attention to the processes by which the majority of poor people presently obtain their housing and the land markets of which they are a dynamic part.

For example Gilbert and Ward stress the political dimension of housing and access to urban land in three South American cities Mexico, Bogota and Valencia with particular attention to the role of self-help.

On the other hand rentals have a supportive role for poor households contributing to income generation and literature review informal settlements financing housing. Opinions about commercialization in the context of self help housing, particularly rental practices, are at the least controversial.

Aboutthe plateau over the city had grown was almost entirely covered by residential developments and the outburst of invasions and pirate settlements. Gilbertidentifies two stereotypes of the demand for informal rentals. Conclusion Research on housing sub-markets in developing countries has increased considerably in the last fifteen years, marking a shift in the approach "from studies of homelessness, to studies of lodging" Peattie Demand and choice of tenure When households search a place to live comparing accommodation in different sub-markets, they are generating demand for a certain type of housing.

For example, Amis and Lloyd25 attest that poor landlords case study plan of action sample less finance for investment and are frequently totally dependent on tenants' rents. Environmental and unit 10 circles homework 5 tangent lines aspects literature review informal settlements frequently less covered than political issues.

As in Karachi, room letting plays a supporting role for most households and frequently it contributes to finance house extensions. In this research angle, the literature covers different issues. There is no absolute answer to this question. Landlordism in squatter settlements seems to vary between two extremes: Conversely, constraints in the supply of cheap land can derive in higher rents and oversized rental or shared sub-markets.

For example in Bangkok, De Wandeler and Khanaiklang subdivide the non-ownership oriented sub-market into several 'sub-categories of rental, rent- free, and shared options' Renting has to be recognized as both a respectable and a necessary literature review informal settlements option" Evidence from different countries prompts that neither of these models suffice to explain the nature of the demand for rental housing, and that the polarity central slums-peripheral squatters is not always applicable.

In next sections, non-ownership alternatives shall be aring among the iron deficiency case study owner and the occupants of the land. Bythe proportion of renters in the city had risen to Some early reports on the phenomenon appear in the context of discussions over squatter settlements and self-help as universal solution.

In Karachi, J. These are some of the few findings that appear to be common ground in the literature about the demand for rental housing.

  • Some claim that rentals lower the housing standards of the poor opening the door to speculators Marcus ; Burgess
  • Tomasz Sudra ; in Mexico, reports the presence of "renters who pay no rents.

At an early stage in life cycle, households base their preferences on their housing background and their primary housing needs. Rental Sub-markets There was practically no research on rental housing in developing countries before the 80's. The illegal character of the transaction keeps owners away from any kind of 'marketing,' instead, they prefer to advertise through word of mouth, and they often let out to kin and friends.

At present few Latin American governments seek balance in their housing policies and most consistently favor a single-faceted housing solution.

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They encourage owner-occupation, sacrificing other forms of housing tenure in the altar of the favored option. In fact, very few studies deal with shared housing, even less considering it a sub-market.

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There are reports of large informal rental sub-markets also in El Salvador and Zambia. In this context, it is a frequent over simplification to reduce the market to the two-fold division, formal-informal, considering the informal sector as a 'temporary dysfunction caused by rapid growth and imbalances in the distribution of resources and income' Gilbert and Ward They also exert a determinant influence in the development of non-ownership alternatives such as rental and shared housing.

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On one hand they cater the poorest segments of society increasing the range of choices for those who cannot afford the price of ownership, and for those who in search of better opportunities needs mobility rather than stability.

Once consolidated with security of tenure and basic infrastructure, self-help housing looses its pure use value and becomes a commodity that can be rented or sold Burgess But then, who caters for this demand in informal environments?

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Although some times it may develop in a form of large-scale 'capitalist exploitation,' there is consistent evidence that rental sub-markets in poor communities may play a role that goes beyond mere speculation. Third, and most important, the social, economic, cultural, and geographical contexts inherent to each urban center that result in completely different market configurations.

But even though landlords and tenants may share similar characteristics, this does not mean necessarily that their relationship is benevolent. In the second phase, their preference is influenced mostly by the perception of affordability and the awareness of housing opportunities in the market.

Those with the lower incomes face the smaller range of alternatives. Approaches have ranged from 'clearance and redevelopment' in the '50s and '60s, to sites-and-services and upgrading in the '70s and '80s. Therefore, they can be as hard or harder than affluent landlords. Gilbert and Varleyin Guadalajara and Puebla, Mexico, report a mixture of both types with slight predominance of small scale landlords.

Angel et al. The tendency is to focus upon case studies of particular cities or even settlements, though some develop a more comprehensive evaluation. Commodification Labeled 'commodification' by Mehta and Mehta, this tendency of commercial penetration into informal settlements is widely reported in the literature Payne More complex sub-markets such as rentals, seem to require at least some degree of consolidation Edwards In a later study, Kosta Mathey retakes the discussion over self-help Wardand through case studies in different continents confirms the increase of commercial practices in informal settlements.

In the same stream of thinking, other recent works stress the importance of a diversified housing sub-market. Also in Bangkok, Sheng deepens in the interrelation between these sub-markets, and reports the advantages of practices such as, land sharing as an alternative to resettlement and relocation.

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Land and housing have been studied and described in large metropolitan agglomerations, particularly in thesis paper rationale Latin-American and African countries. Despite wide-spread evidence of the phenomenon, it is remarkable the limited coverage literature has devoted to this issue.

According to Van Lierop, the term housing market designates 'a conceptual framework within which occur a variety of interrelated and mutually influenced processes.

In such circumstances, tenure choice is often reduced to rent-free and sharing arrangements, as has been discussed above. This affirmation marks a departure from the traditional Bank approach regarding informal settlements, centered mainly on ownership-oriented options such as, upgrading and sites and services.

Wardand Skinner personal statement max words Rodell remark how commercial pressures have intensified considerably, changing the nature of informal processes.

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But sub-markets are not necessarily geographically contiguous entities, on the contrary, most times they extend their limits over neighborhoods in different locations. They indicate that the whole process of housing production in informal settlements is, at the same time, a slow process of housing commodification95, In addition, rental sub-markets may play a crucial role boosting micro-scale economy at neighborhood level.

However, the coverage is still undeveloped in terms of regional and intermediate city studies Payne8. In a gender oriented discussion she argues that female landlords tend to have better relationship with their tenants than male landlords. Ramirez et al. The choice, in the formal market, is usually posed between owning or renting a house or apartment Wadhvab.

In the case of Ahmedabad, Wadhva a, 18 identifies a third segment, the semi-controlled market, that neither falls into the regulation of the Rent Control Act, nor in the open uncontrolled market.

Some other frequent lines of characterization include: Thus, any successful modeling of housing sub-markets has to consider necessarily the maze of interrelated sub-markets, and the broader social-economic context in which they operate Rothenberg65; World Bank Three main areas of coverage interest this research: Defining housing markets Several factors restrain the definition of housing sub-markets in developing countries.

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Rakodi criticizes such dualistic analysis stating that "it conceals the segmented nature of the housing supply" Rakodi Majority of the contributions in the field of informal sub-markets deal with case studies in several parts of the world.

Efforts should be made to stimulate the production of rental housing, including both informal housing, such as the rental of rooms in a small house, and more formal rental units, such as apartments Variety of rental options The nature and characteristics of rental sub-markets vary from country to country. Despite being able to afford ownership in the periphery, most conventillo tenants prefer renting in the run-down but well-located tenements.

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