The housing crisis isn't just a matter of supply and demand or fluctuating market prices. It’s a symptom of a deeper issue embedded within the way we think about land, property, and wealth. In a recent conversation, Zola Rose, an advocate for housing reform, and Matt Perez, dove into the heart of this matter. Their discussion highlighted the flaws in traditional models of land ownership and called for a more human-centered, stewardship-based approach to housing.
Housing as a Human Right
Zola began by addressing a critical gap in housing legislation, specifically the absence of the right to housing in many parts of the world. Housing, according to Rose, is a fundamental need, yet affordability metrics are often skewed. Internationally, housing costs—whether rent or mortgage payments—should not exceed one-third of a family’s income. However, many people are spending up to 50% of their income just to keep a roof over their heads, leaving little for other essentials like food, healthcare, or education.
This hidden poverty, where individuals have shelter but are deprived of basic needs, stems from a system that views housing as an asset rather than a necessity. Rose pointed out that without legislative reforms such as a capital gains tax, many countries, including New Zealand, will continue to see housing as a speculative investment, benefiting those with wealth while marginalizing the rest.
Capital Gains Tax: A Missed Opportunity
One of the glaring issues in the current system is the absence of capital gains taxes on housing in many countries. As Rose explained, when someone sells a house at a significant profit, the gains are often tax-free, encouraging further investment in property for profit rather than for personal use. This lack of taxation on real estate profits allows wealth to accumulate disproportionately among property owners, often politicians and those with economic influence, who are unlikely to support reforms that would reduce their own financial gain.
In many ways, this unchecked profit from property sales exacerbates the housing crisis. Rose argued that if profits from housing were taxed like any other form of income, governments could reinvest those funds into public housing or other social services, creating a more equitable housing market.
The Commons vs. Privatization
A major theme of the discussion was the concept of the "commons"—the air, water, soil, and land that we all share. Historically, land was viewed as a shared resource, not something to be owned or privatized. However, modern capitalist systems have shifted the focus to private ownership, limiting access to these essential resources.
Rose proposed a paradigm shift, advocating for a move away from ownership models toward stewardship or guardianship of land. This would require individuals and communities to act as caretakers of the land, ensuring that it is used sustainably and for the greater good, rather than for personal profit.
Stewardship Requires New Skills
Transitioning from an ownership model to a stewardship model isn't just about changing laws or policies; it’s about changing mindsets and acquiring new skills. Perez and Rose both acknowledged that this shift requires a fundamental change in how we interact with one another and with the land.
Rose, who teaches Nonviolent Communication (NVC), emphasized the importance of developing relational skills to support this new model. NVC encourages people to focus on observations rather than judgments, and on needs rather than demands. In a stewardship model, these communication techniques would be crucial for finding common ground and making decisions that benefit everyone, not just those in positions of power.
Power With, Not Power Over
One of the key takeaways from the conversation was the idea of "power with" rather than "power over." In an ownership model, power is concentrated in the hands of those who own land or resources, leaving little room for collaboration or shared decision-making. However, in a stewardship model, power is shared among all stakeholders, fostering a sense of collective responsibility.
As Rose pointed out, this shift can be disorienting for those accustomed to having control, but it is necessary if we are to create a more equitable and sustainable future. By embracing stewardship, we can move toward a system that values community well-being over individual profit, ensuring that everyone has access to the resources they need to thrive.
A New Paradigm for Housing
The housing crisis is not just about the availability of homes; it’s about rethinking our entire approach to land and property. By shifting from an ownership model to a stewardship model, we can begin to address the root causes of housing inequality and create a system that benefits all members of society. This shift will require new skills, new laws, and, most importantly, a new mindset—one that prioritizes the common good over individual gain.
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