{"id":5292,"date":"2012-09-26T14:12:40","date_gmt":"2012-09-26T17:12:40","guid":{"rendered":"http:\/\/rioonwatch.org\/?p=5292"},"modified":"2016-02-12T09:11:32","modified_gmt":"2016-02-12T12:11:32","slug":"my-house-my-debt","status":"publish","type":"post","link":"https:\/\/rioonwatch.org\/?p=5292","title":{"rendered":"My House, My Debt?*"},"content":{"rendered":"

Clique aqui para Portugu\u00eas\"\"<\/em><\/strong><\/a><\/p>\n

View original article in Portuguese\u00a0here<\/a>. Article by\u00a0Raquel\u00a0Rolnik, Special Rapporteur to the UN on Adequate Housing.<\/em><\/p>\n

\"\"Researchers from IPEA, the Institute for Applied Economic Research, recently published a study<\/a> that suggests that the Brazilian real estate market might be something of a bubble. The authors of the study, M\u00e1rio Jorge Mendon\u00e7a and Adolfo Sachsida, calculated that despite house prices increasing some 165% between January 2008 and February of this year, the rate of inflation in Rio was 25%. According to the study, this sort of increase in prices \u2013 brought on by federal government programs and incentives that increased access to credit in the market \u2013 is unsustainable.<\/p>\n

However, IPEA’s board contested the findings in its institutional newsletter<\/a>, saying that the volume of real estate credit in relation to Gross Domestic Product is still too low to talk about a bubble. In the United States, for example, the volume of real estate credit reached 65% of GDP. The report shows that in Brazil there was a rapid expansion \u2013 from 1.5% of GDP in 2007 to over 5.5% this year<\/a> \u2013 but the board maintains that this remains a low rate.<\/p>\n

The fact is that if property prices are increasing 160% whilst general income increases by 20-30%, then this means that fewer and fewer people will be able to afford to buy a property. At stake, therefore, are the effects of this policy on people\u2019s housing rights. Moreover, there is a trend towards higher rental prices. With increasingly expensive property purchase and rental rates, access to adequate housing will become increasingly limited.<\/p>\n

What is most disturbing in the economists\u2019 debates is that the sustainability of the growth in housing credit is solely viewed from the perspective of the financial stability of the country and never considers what these increases mean for families or individuals. A family that commits a considerable part of its income to pay for housing runs the risk of having to downgrade its standard of living \u2013 food, health and education, for example \u2013 to be able to keep up with repayments.<\/p>\n

Another important consideration that economists fail to take into account is how the increase in the offer of credit in the real estate market has affected Brazilian cities. The increase implies a reallocation of social groups in the urban space and ultimately can bring about an increase in segregation. That is because the only viable option for lower income groups \u2013 faced with the price-increase bubble \u2013 is to live in locations and neighborhoods on the urban periphery<\/a>.<\/p>\n

*Title alludes to the “My House, My Life<\/a>” federal housing program which will produce 3 million units nationwide between 2009 and 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"

Clique aqui para Portugu\u00eas View original article in Portuguese\u00a0here. Article by\u00a0Raquel\u00a0Rolnik, Special Rapporteur to the UN on Adequate Housing. Researchers from IPEA, the Institute for Applied Economic Research, recently published a study that suggests that […]<\/a><\/p>\n<\/div>","protected":false},"author":5,"featured_media":5345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[335,1282],"tags":[549,626,282,627,157,210],"writer":[47],"translator":[467],"illustrator":[],"photographer":[],"class_list":{"0":"post-5292","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-policies","8":"category-research-analysis","9":"tag-regiao-dormitorio","10":"tag-debt","11":"tag-housing","12":"tag-housing-bubble","13":"tag-minha-casa-minha-vida","14":"tag-public-housing","15":"writer-raquel-rolnik","16":"translator-tom-winterbottom"},"_links":{"self":[{"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/posts\/5292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5292"}],"version-history":[{"count":0,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/posts\/5292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=\/wp\/v2\/media\/5345"}],"wp:attachment":[{"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5292"},{"taxonomy":"writer","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fwriter&post=5292"},{"taxonomy":"translator","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftranslator&post=5292"},{"taxonomy":"illustrator","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fillustrator&post=5292"},{"taxonomy":"photographer","embeddable":true,"href":"https:\/\/rioonwatch.org\/index.php?rest_route=%2Fwp%2Fv2%2Fphotographer&post=5292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}