Rossbach: Domestic financing is key in solving housing problems

Domestic financing is the main issue in solving housing problems, Anacláudia Rossbach, Executive Director of the United Nations Human Settlements Programme (UN-Habitat), said during an event held within the 13th Session of the World Urban Forum (WUF13) in Baku, Report informs.

The director underlined that land is a fundamental factor in housing finance: "Today land is expensive and becoming even more costly. We talk about integration and eliminating segregation, but construction in central areas is more expensive. That is why we need planning tools and land policies to help decide where homes will be built, to reserve land, to value unused areas, and to consider recycling options. All of this affects costs. If I can use state-owned land, it is free, and about 50% of the problem is solved. If not, I must work with privately owned land, and there are different methods for that. If buildings can be rebuilt, costs differ – but in many countries there are no buildings available for reconstruction."

Rossbach stressed that no country has solved housing problems sustainably through international financing alone: "The key is domestic financing. For example, China lifted hundreds of millions of people out of poverty by building homes with domestic financing. After World War II, Europe carried out reconstruction programs with significant financial inflows from the US Marshall Plan, but later built its own system. In Latin America – Uruguay, Brazil, Colombia, Mexico, Chile - housing policies and provision have been shaped through various schemes. In short, we may rely on some initial external support to start the process, but we must establish solid housing finance systems."