New Urban Agenda (NUA) welcome to this presentation Prof. Banji Oyelaran-Oyeyinka Director, Regional office of Africa
1976 1st UN conference on Human Settlements HABITAT 3 PROCESS May,2015 Nairobi PREPCOM 1 1996 2000 2015 2nd UN conference on Human Settlements Millennium Development Goals Sustainable Development Goals July,2015 Issue Papers (22) Sept,2015 NY PREPCOM 2 Feb,2016 Policy papers (10) May, 2016 Draft 0 NY May 2016 Informal Consultation June 2016 Draft 1 July 2016 Draft 2 THEMATIC & REGIONAL MEETINGS Finance Public Space Infrastructure Energy Slums 2016 Quito, 17-21 October New Urban Agenda July,2016 Surabaya PREPCOM 3 July 2016 DRAFT 3 Sept 2016 Informal Consultation
NUA Vision and Mission The persistence of poverty, growing inequalities, and environmental degradation are major obstacles to sustainable development worldwide, with social and economic exclusion and spatial segregation often an irrefutable reality in cities and human settlements. Readdressing the way cities and human settlements are planned, financed, developed, governed, and managed Take advantage of the opportunities of urbanization as an engine of sustained and inclusive economic growth, social and cultural development and environmental protection IDEA www.yourwebsite.com
The NUA takes into account the 2030 Agenda for Sustainable Development by including the provisions of the Sustainable Development Goals Old approach focused mainly on developing countries. The New Urban Agenda expects developed countries to play a more active role in achieving the goals
THE NEW URBAN AGENDA
Quito Implementation
3 Pronged Approach to Urban Development Urban Planning Public space layout, Street Pattern, Open Spaces, Environment Protection 01 Legislation Finance Legal Protection of Public Space, Development Rights, Building Codes, Public and transparent management. 03 02 Land Acquisition, Land Readjustment, Maintenance of Public Services, Budgeting Incomes and Expenditure IDEA www.yourwebsite.com
AFFORDABLE HOUSING IN THE WORLD S CITIES
HOUSING TYPES VARY ACCORDING TO GDP PER CAPITA Variation in the housing sector: Low-Income cities: 26% Informal Housing 40% Private Single-Family Housing Middle-Income cities: Still 15% Informal Housing 40% Private Multi-Family Housing Middle-Upper-Income cities: Above 45% Private Multi-Family Housing High-Income cities: More than 80% are Private Multi-Family and private Single-Family Housing > 3,000 3,000 8,000 Share of Housing Type as % of the whole Housing Sector 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Informal Housing Public Housing Private Multi-Family Housing Private Single-Family Housing Low-Income Middle-Income Middle-Upper-Income High-Income 8,000 20,000 < 20,000
HOUSING IS AFFORDABLE WHEN - The ratio of the average house price is no more than 3 times the annual household income OR - The ratio of the monthly rent is less than 25% of the monthly household income AFFORDABILITY MEASURES Occupant Affordability: this measure shows how affordable a dwelling is for the household, whether in the formal, informal, private or public housing sectors Median Affordability: this measure shows how affordable a dwelling is in the formal private housing market for the typical household living in the city.
HOUSING IS LARGELY UNAFFORDABLE OCCUPANT AFFORDABILITY The Median House Price in the UN Global Sample of Cities (ratio 4.9) is well above 3.0 times the annual household income in the majority of metropolitan areas Only 13% of cities of the UN Global Sample have ratio less than 3.0 House Price-to-Household Income Ratio 15.0 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 City A, Afforda 3.0 ble 2.0 1.7 City Housing Sector Occupant Affordability Accepted Standard for Affordability (3 HH Incomes) Median Occupant Affordability UN Sample of Cities City B, Affordability Standard 3.0 City C, Median Affordabil ity 4.9 City D, Unafforda ble 12.1 1.0 0.0 Cities
HOUSING IS LARGELY UNAFFORDABLE OCCUPANT AFFORDABILITY With the exception of informal housing for Low-and High-Income cities, all other housing types in the market are unaffordable Public Housing is not affordable in any city regardless of GDP per capita Private Single-Family Housing is largely unaffordable (as much as 2 times the affordability threshold) in both Low- and High-Income House Price-to-Income Ratio 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Informal Housing Public Housing Private Multi-Family Housing Private Single-Family Housing 0.00 Low-Income Middle-Income Middle-Upper-Income High-Income > 3,000 3,000 8,000 8,000 20,000 < 20,000
RENTAL HOUSING IS ALSO LARGELY UNAFFORDABLE MEDIAN AFFORDABILITY Informal rental housing is only affordable in Low-and High-Income cities Public Rental Housing is generally affordable in any city, with exception of Middle-Upper-Income Private Multi-Family Housing is largely unaffordable in all the cities regardless the GDP per capita Share of Household Income Contributed Towards Rent Informal Housing Public Housing Private Multi-Family Housing Private Single-Family Housing 40% 35% 30% 25% 20% 15% 10% 5% 0% Low-Income Middle-Income Middle-Upper-Income High-Income > 3,000 3,000 8,000 8,000 20,000 < 20,000
HOUSING IS LARGELY UNAFFORDABLE House Price-to-Household Income Ratio 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Occupant Affordability Median Affordability AFFORDABILITY THRESHOLD Low-Income Middle-Income Middle-Upper-Income High-Income Rent Expressed as Share of Household Income 50% Occupant Rent Affordability 45% Median Rent Affordability 40% 35% 30% 25% AFFORDABILITY THRESHOLD 20% 15% 10% 5% 0% Low-Income Middle-Income Middle-Upper-Income High-Income Purchasing a house in any city regardless of GDP is UNAFFORDABLE (more than a ratio of 3.0) Renting a house in any city regardless of GDP is UNAFFORDABLE (more than 25% threshold)
HOUSES IN EXPANSION AREAS ARE NOT EASILY ACCESSIBLE (TIME/DISTANCE) Across cities, there is a wide variation of travel time that reflects differences in city size and in distance of trips Housing built far away from arterial roads, public transport lines and labor market are not a viable solution even if they are affordable Access to employment opportunities and public services are often compromised by congestion Travel Time in Minutes 160 140 120 100 80 60 40 20 Average travel time (by car and public transport) from the expansion areas of the city to the CBD is 53 minutes Travel Time to CBD City A, 13 minutes Average Travel Time to CBD City B, 53 minutes City C, 115 minutes 0 Cities
Mortgages
MORTGAGE INTEREST RATES ARE HIGHER IN DEVELOPING COUNTRIES 40% Median mortgage interest rate: Cities in Less Developed Countries - 8% UN Sample of Cities - 3.8% in developed countries - 10.5% in developing countries - THE NUA para 140: (SEPT 10, 2016) We will support the development of appropriate and affordable housing finance products; -encourage the participation of a diverse range of multilateral financial institutions,.. -. Mortgage Interest Rate (%) 35% 30% 25% 20% 15% 10% 5% 0% City A, 2,2% Cities in More Developed Countries World Median Mortgage Interest Rate City B, 7% Cities City C, 30%
G Thank You For Listening