In South Korea, many young people struggle with housing crisis. Especially for younger generations are having a hard time to getting house because apartment or house cost exorbitant even pricier than San Francisco, which is notable for housing price. Thus, young people refuse to marry because they already have a lots of debt from student loan, and cannot afford to explore marriage life. Fortunately, housing crisis does not directly influence to young generation to get off the street, but it derives side effects of generating unmarried from loan burden. It seems Los Angeles has similar situation as bad as South Korea. Newly marriage couple have a hard time to find new place for two because apartment rent fee went up so high, and becomes much further to having their own house. To release an urgent problem of affordable housing in Los Angeles, the federal government should build ‘micro-loft’ apartment to release the housing crisis which is from more affordable houses and money environment. Thus, few young adults decide to move farther from their work places, and consider to move another cheaper states rather than California
There is an urgent need for residential building innovation and many institutions try to solve the housing problem in Los Angeles, and UCLA develops a lightweight synthetic. UCLA Department of Architecture and Urban Design (AUD) had made “BI(h)OME” which is peripheral hut for increasing housing in Los Angeles for lower income people (Webb par 2). However, the BI(h)OME, a score of designs have been targeted in California, could not succeed as manufactured housing. The problem of these product was limited space, cost and time. When buyers want to customise the houses, then the cost drive up and each required a conventional building site, which took a while to prepare a flat basement. City authorities also required extensive testing of new designs. That is where deal with aspect of efficiency and BI(h)OME result in substandard performance.
Also, different home loan programs have little effect on supporting first home owners. Bank have a tendency to raise requirements against climbing delinquencies, so first-time home buyers would not be able to acquire the lowest possible mortgage rates. As a result, buyers will practically need a high credit score and utterly valid income and assets to get the best rates. Lower income worker, who need financial aid in most, cannot make minimum down payment and get a higher mortgage rate. According to the article “2010 First-Time Home Buyers’ Guide” by Luke Mullins, “Although the requirements will vary depending on the market, borrower, and property type, most buyers will need to put between 10 and 20 percent down. ‘That doesn’t mean you can’t get a mortgage if you have less of a down payment. It just means that you are not going to get the best interest rates.’ Guy Cecala says” (Mullins par. 10). Even though, most borrowers are required to put only 3.5 percent down, many housing experts encourage buyers to take a larger stake say, 10 percent as a buffer against price declines give rise to adding more extra weight to buyer. (Mullins par. 11)
Rents are rising rapidly and there is a chronic shortage of affordable housing. ToML4 ML5 ML6 solve the problem, the federal government should build multiple-mini metropolitan apartment, densely populated apartment around 250 to 300 square foot large for each room, which can occupy over 100 units, and qualified people can live in the house in cheaper price compares to municipal rates. The apartment will be built 30 story building and each unit will be about The dramatic increase in housing prices has created intense financial pressure on those with low or even moderate incomes. It is an apartment form and inexpensive loft on the market. These apartment is cheap, and average rend is $850 per month. Exceedingly small but it is fair amount of small studio house and affordable to young generations to pay for rent. High cluster apartment building can occupy more people than single house and it will resolve notorious pricey rent fee from more supplies. According to the article “It’s a Small World After All” by Emma Teitel, “Micro-suite” resemble many metropolitan apartments in Europe and Asia, with floor space roughly the size of two parking spaces” (Teitel par. 2). “Apartment seekers in notoriously pricey Vancouver shouldn’t get too excited about the inexpensive new ‘designer lofts’ now on the market. They may be cheap, stylish, and located in a refurbished heritage building (Teitel par. 1). Since the vacant lots were scarce in Los Angeles, it could be a great solution for lacking affordability or people may want to live in stylish building for individual preference.
For example, University of British Columbia in Vancouver have started micro-size dormitory. Micro-units means a bed, a desk, a wardrobe, a kitchen, and a bathroom, all packed into the size of a parking spot. They were the new design plan at the UBC in Vancouver, the one of expensive real estate market in the country. In accordance with the article “The Pod People” by Tamara Khandaker, the lacking of room in the campus always been a problem at UBC’s Vancouver and about 6,300 students were on the waitlist every year. “‘There’s a wait list of several thousand people every year. People who apply often don’t get housing,’ says Will McDonald” (Khandaker par. 2). The campus decided to develop dormitory room to occupy more students. The idea at UBC is to make living on campus more affordable for students by making it more compact. The decision came out with one of the student named Andrew Parr, UBC’s managing director of student housing and hospitality services, and he said, “they could imagine living in a much smaller space and spending $300 less per month, then consulted a larger group” (Khandaker par.5). The micro units would go for $670 to $690 a month, compared to the current average rent on campus of about $1,000 a month.
The most merit on micro-apartment will be the no pressure from mortgage and rent fee. YoungerML7 generations, who are suffering from paying back student loans, prefer to rent apartments or give up to having their own house because lack of budget. The financial pressure can not only from student loan but also mortgage makes people hesitant from the idea of owning house. More debt from loans will take them longer to settle down. Young generations can budget less on living expenses from less rent fee and can spend money more wisely. For instance, they can save money for own-house or pay off their loan faster which can help to spend less money on loan interest. This apartment is especially good for young generation such as student, newly married couple, or single because it only contain minimal space for own. TheML8 lack of affordable housing in Los Angeles has become a difficult issue to ignore.
Young people refuse to marry because they already have a lots of debt from student loan, and cannot afford to explore marriage life, such as having a baby, raising child in these condition. Fortunately, housing crisis does not directly influence to young generation to get off the street, but it derives side effects of generating unmarried from loan burden. NewlyML9 ML10 married couple can save money. They can save money or repaying debts. People are spending thousand dollars in each and every month for rent fee, and house rent fee does not pay back even cent after contract done. it is wasteful. Furthermore, government has a type of loan to support first home owner. First Home Owner Programs does not qualify to people who has debt from student loan and they cannot even think about getting house in Los Angeles looking out in reality.
AnotherML11 considerable fact is Homeowner Association Fee. The HOA cost will keep in low because residents in one community will share and it would be divided by per unit. These building is based on more units in limited space, so it is not big deal to reducing association fee. Also, it will have indoor pool, fitness area, and club house on first floor. It will provide minimum entertainment or recreation area for higher living condition for tenant.
ItML12 would be nice to adduce that the environmental movement has also pushed the rise of more efficient living spaces. The desirability of inner-city living, together with a greater realization of the social, personal and economic costs of long daily travel, have shifted the balance of preference for many towards tighter urban living as opposed to the open lawn of suburbia. They are faced with a disturbing choice: small apartments close to downtown, or long commute times. It already crisis to having a new house, and might more people leave to Orange County or near the Los Angeles area, called suburb. The complication exists, but metropolitan apartment has to be built in real life for more supplies. To encourage people to have interest, the apartment should include fitness area, swimming pool, and club house for residents. Also, LA council should have money to build the new apartment and their parking spot. Underground parking system will require because there is shortage space in LA everywhere. Higher spacious apartment, which is dragging out from minimum area to maximum spaces, is the key point of the solution. Angelinos have been suffered these problems about 70 years.
ApplicationML13 impact Parr says revenues from the fee increase that took effect this September, which raised rents across campus by about $105 to $140 a month, would go to building more student housing, student services, and bursaries for students who can’t afford housing. But Bailey believes the rent increases were the result of the university’s poor execution of an “ambitious” housing plan. students now who won’t really benefit from those increased spaces,” he says.
GatheringML14 up more people in Los Angeles might increase terrific traffic, but their transportation in Los Angeles will reduce the problem. The average purchase price of a home in Los Angeles is $507 per square foot. As the size smaller, the overall price for the apartment will estimated by $100 per square foot. When the federal government build more houses, then more residential states produced. Also, the amount of mortgage decreased and it will reduce the housing problems and easy to own a house. So, it’s basically increasing space for more demand and reduce housing crisis. However, there should be some side resolution included since it is considered as domestic problem in recent. First, the government should own the houses like senior apartment because it is for the general citizen, not for the sales profit. It is good form of demand for conurbation Also, Los Angeles has no vast empty spaces to build new buildings, they should use limited are spacious to occupy more people. That means it should have built higher for extra space. Los Angeles has lots of skyscraper, and around 30 floor zoning is fair height from earthquake danger. Second, the house should allow parents with minor kids. After long term contract, they should pass over the house to other newly married couple or young generation. Which means contract restriction should be applied. Because there are many young generations who wants to save some money and doesn’t want to have double loan interest, maximum 6 years of contract should be applied. After 3 years, they can renewal one more term. The purpose of this apartment is for younger generation, so it should keep provide a chance to young couple in priority. Third, application should be accepted order by a lot. The apartment will have lots of demand right away, so it should provide fair chance to everybody. Most democratic way is trust to chance and try it. Then newly marriage couple have chance to having their own house for a moment and saving rent fee. After the contact is done, they can down payment for their saving or paying back the student debt.
An averageML15 studio apartment rent in Los Angeles is $1,700. As an example, senior properties sell for about $21,000 less on a price per unit basis; however, nearly 82% of those units are one-bedroom and studio apartments compared to 59% for the non-senior sample. On a price per square foot basis, the average traditional apartment sells for $122 per square foot, while senior apartments average $105 per square foot (Wiley 189). The empirical approach considers that the variance between senior and traditional apartment values may be related to fundamental differences in apartment supply and demand across these same markets. In each specification, there is a vacancy variable, a proxy to measure the ”price” of real estate services, and either relative supply or its components. As Wiley states that, same idea applies to young generation apartment.
BenefitsML16 for short term is usually cheap apartments are insecure and unclean in Los Angeles area. It was always a problem especially for female had to stay on dangerous area because of money. apartment seekers may have no choice but to lower their standards. Resident can enjoy the safer property fully in same affordable amount. Another side effects from more affordable houses will make people can buy houses in reduced prices. So, people who earns less than $4,000 in Los Angeles had no choice to get a better apartment. For long term benefitsML17 will be development of transportation in the community. More housing will bring more resident into Los Angeles, which could make traffic congestion. Also further benefits could be more transportation would be developed which can impact reducing air pollution from car smog, and traffic. Reduce overall housing rent fee and. High-speed rail in Los Angeles or further in California will develop to be sight spot for more visitors. Or federal government could settle subway in Los Angeles.
Los Angeles should no longer look on with folded arms for owning housing. Regarding to build new houses, it is considerable as matter of time, because the government have to find funds for construction and management. If it releases the house ownership problems for generations, it will also impact on chepaer house in Los Angeles as side effect. Also, Los Angeles need capable building of many people as possible. As looking on the bright side. Another mortgage loan doesn’t help much for young generations. Renting a good house in cheap price would much help to saving money for real own home for them.