Posted by: IIPS
Comments: 0
Post Date: 21/11/2021
The percentage of homeowners compared to those living on rent is higher globally. However, in European countries and most of the developed world, renting for residential purposes is becoming increasingly common as young people have smaller families and are on the move for better economic and employment opportunities.
In Pakistan, according to the Pakistan Social and Living Standards Measurement survey, the percentage of renters in Pakistan is less than homeowners. In addition, the percentage of renters decreases in rural areas compared to urban areas mainly because there is no culture of renting in the villages. The other reason can be, that in villages and rural areas, the cost of construction is cheap and land prices are relatively low. Punjab has the highest percentage of renters compared to any other province because it has the highest urbanisation rate. Besides this, inheritance appears to be the only source of home acquisition in rural areas.
Economists believe that increasing the options for housing rentals for people in the cities can help Pakistan reduce its housing backlog. If a suitable house-rental model is implemented, with a properly regulated tenant-landlord relationship, the model can be integrated into the Naya Pakistan Housing Program to provide affordable housing options to the homeless.
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