Housing Planning for Urban Low-Income Groups with an Emphasis on Their Financial Capabilities and Housing Line of Poverty in Urban Population of Kurdistan Province

Document Type : Research Paper

Authors

1 Professor of Geography, Faculty of Geography, University of Tehran, Tehran, Iran

2 Assistant Professor of Geography, Faculty of Geography, University of Tehran, Tehran, Iran

3 PhD of Urban Planning, Faculty of Geography, University of Tehran, Iran

Abstract

Introduction
Housing is one of the elements of the permanent development. Unlike everyday used goods, housing would become a kind of investment since it gets value continually. Other than its economical value, it increases in value and demand due to its social, cultural, physical, psychological, and health aspects (spiritually and physically). Low-income groups of different societies, generally, are not able to provide appropriate house because of economical (financial) problems and intense increase in the price of housing. Also, the ability of such groups to save money and making use of government facilities is limited. Such a condition in a defective cycle will, always, bring about a gap among offer and demand, effective demand, and potential housing demand amongst these weak groups. Kurdistan Province is considered as one of the critical regions of Iran according to the norms of housing inventory and housing investment. The rate of house-ownership is too low in its first five decades. All the above mentioned reasons have caused housing a serious question so that homelessness and home-badness is slipping towards higher Deciles.
 
Methodology
The study is a fundamental-applied research and has adopted a qualitative and quantitative method for analysis of its data. The required information and statistics for analysis and investigations such as society’s income Deciles, the area of a home to Decile, owners/tenants per cent, financial capabilities, and absolute-relative line of poverty are collected from the authentic source of Iran Census Center.
Quantitative analyses are performed through indirect method functions and Stone-Garry Function. At last, to estimate and calculate the absolute line of poverty EVIEWS software, and for the relative line of poverty SPSS and Excel software were used.
 
Results and Discussion
Investigation about the index of the area owned by urban families in the province demonstrates that in the studied period, we have witnessed a drastic decrease. This decrease in the lower deciles of the society is equal to 38% of the beginning of the period and 28% in the highest Decile.
Ownership rate has indicated a general decrease, too. The average rate of 82.63% in 1996 has lessened to 61.4% in 2006. The percentage of tenants’ population in all Deciles has grown and, on the average, it moved from 13.68% in 1996 to 26.83% in 2006.
The proportion of tenants in high-income is 5 times more than low-income at the beginning of the period. However, at the end of the period, the proportion was 4.6 times.
Employment rate has been accelerated partially so that in the first Decile it reached from 21.05% in 1996 to 50% and totally it has grown to 78.5% from 74.74%.
The proportion of food cost to total costs among non-owner families is more than 32%. The cost of housing has formed the major portion of the cost of such families.
To investigate financial capability of different Deciles regarding house provision, indirect function has been applied. It suggests a large amount of difference among different income Deciles according to the function results so that the first six Deciles, literally, cannot afford house provision, at least 60 m2. However, the tenth Decile has an unusual ability. At the end, the researcher has tried to identify absolute line of poverty through Stone-Garry Function Method and EVIEWS software and relative line of poverty- the basis was half and 2.3 of median rate which is 75 m2. It is based on 2011 plan of urban families’ cost and income. Accordingly, the absolute line of poverty of housing is 50 m2 and the relative line of poverty with half of median rate is 37.5 m2, and with 2.3 of median rate is 50 m2. Therefore, 13.7% of urban families are living under absolute line of poverty, 6.5% are under relative line of poverty (half of the median rate), and 17% are under relative line of poverty (2.3 of the median rate).
 
Conclusion
The results of the study suggest that there are numerous principal problems in the realms of housing economy and market. Furthermore, one can witness the impacts of several factors in housing sector such as major economic condition, inflation rate, the growth in the price of land, the growth in the price of construction material, growth in the gap between effective demand and potential demand, the low amount of government bestowed facilities for either purchasing or building house, and applying rigid rules and regulations regarding house construction.
All the above-mentioned factors have caused a harsh situation for low-income groups of people to obtain appropriate house. In addition, as time passes, it has been becoming worse. Hence, during the period of the study, the inability of people with suitable house has slipped to the middle Deciles of the society which was only 3.
Based on what has been discussed, applying some proper strategies, policies, and decisions seems necessary in order to provide the required (economical, legal, cultural, and urban civilization) factors for low-income groups. Some steps like reforming urban civilization rules and regulations, facilitating construction license, increase in the facilities related to purchasing/building house, collecting suitable rules and regulations is concerned to gradual house construction, adoption of applied steps to decrease brokerage in land and housing market, and to decrease the taxes related to housing sector.

Keywords

References

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Human Geography Research
Volume 48, Issue 2
June 2016
Pages 211-226

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History

  • Receive Date: 06 May 2013
  • Revise Date: 08 June 2016
  • Accept Date: 07 July 2015

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