The search for affordable housing in the US is becoming critical as rents soar and home ownership becomes more of a distant dream than a reality for millions of people.
With inflation continuing to pinch and a shortage of available houses, younger Americans are looking for alternatives to traditional accommodation, from sleeping in bunks, to “tiny homes”, to ad hoc dwellings erected on a larger property.
Perhaps the most vivid illustration of America’s housing crisis is the growing popularity of “pods” — small rooms often furnished with only a bed — in expensive areas such as Palo Alto, one of the main cities of California's Silicon Valley.
Pods owned by Brownstone Shared Housing are 2.4 metres tall and include a bed, foldaway desk and a charger for electric gadgets, with access to a communal area that has other facilities including a bathroom and kitchen.
The cost? About $500 a month.
Christina Lennox, one of the company’s founders, says the idea came from her own experience of trying to find somewhere to live.
“I moved out to California from Arizona to attend a church leadership college,” Ms Lennox says. “We received housing. After college ended, I was on my own and was going to go homeless.
“Palo Alto is one of the most expensive places to live in the world. The rents are more than double we are charging, even for a studio.”
Ms Lennox points to the difficulties faced by people moving to the area to work for local businesses. Pod tenants are chosen in part for their compatibility rather than the size of their wallets, she says.
“The category they fall into is young professionals, 20s to mid-30s. We have culinary interns, a Tesla employee, we had a poet, Stanford researchers and teachers.”
As Ms Lennox stretches out on one of the pods, she says it is far more comfortable than a bunk bed.
She hopes the company will go national and even international, looking at cities such as London experiencing a similar housing crunch.
Similar projects are popping up in New York, San Francisco and Los Angeles.
The rise of pods and other alternatives is taking place as a generation already struggling with student debt now faces a housing shortage and soaring costs.
Emaar Properties: real estate across the UAE — in pictures
“Millennials are competing for mid-priced housing and what use to be called 'starter homes' with institutional investors who are turning traditional homeowner properties into rental property,” says Robert Silverman, professor in the department of urban and regional planning at the University of Buffalo.
“All of this activity puts additional upwards pressure on housing prices and rents.”
Residential rents in the US increased by an average of 15 per cent last year, double the rate of inflation in many parts of the country, In increasingly popular spots such as Austin, Texas, the figure was 40 per cent.
“The affordability crisis is worsening and it’s increasing up the income spectrum,” says Caitlin Sugrue Walter, vice president of research at National Multifamily Housing, the trade association representing the apartment industry.
“People who are well off now can’t afford to buy but they have considerable renting power, which is driving the market up,” she tells The National.
Then there is the shortage of supply, as house building has yet to recover from the 2008 crash.
“We estimate we need to build 328,000 [homes] a year to keep up with annual demands Ms Sugrue Walter says. "We have had a decade of underbuilding ... we are running at full capacity and it is still not enough.”
The pods are only one way in which the US is trying to square the circle of soaring demand and affordability: “tiny homes” are also gaining in popularity.
The idea is hardly new. The movement dates back to the mid-19th century and the publication of On Walden Pond by David Thoreau, the first great experimenter in small-space living.
It came into vogue in the 1970s as part of the counterculture movement, with pioneers such as Lester Walker citing Thoreau as an inspiration. By the end of the century, it was boosted further by Jay Shafer, who wrote The Small House Book in 1999.
But it was the 2008 financial crash that provided the impetus for living smaller, as families struggling to pay their mortgages downsized.
Tiny homes are rarely bigger than 500 square feet — about a fifth of the size of a normal family house.
They come with a much lower price tag, costing up to $75,000 — a fraction of what a buyer would pay for a conventionally sized dwelling.
They even come with a chic cachet, with Elon Musk renting one in Texas while working on SpaceX.
The other option is what Americans call an ADU, or Accessory Dwelling Unit, which is built on the land of an existing home.
These come in an array of shapes and sizes, from converted garden sheds to granny flats. And like tiny homes, they cost far less than a normal house, Even on the expensive Pacific coast, the price tag can be as low as $116,000.
But planning laws in some areas can thwart the construction of ADUs. In the last election, former president Donald Trump campaigned to protect the suburbs against cheaper housing developments, indicating that the ADU movement is likely to have to battle political headwinds.
Prof Silverman is sceptical about the viability of large-scale development of pods and tiny homes, believing they are attracting interest because of media hype.
“Auxiliary units may have a little more promise,” he says.
“They are basically studio-style units built on the lot of an existing home. They are more cost-efficient since they have smaller square footage, but that also limits them as an option to only small households.”
However, smaller households are becoming more of the norm, In 1960, the average US household averaged 3.33 people. Last year it had shrunk to 2.51.
And so, as prices rise and households shrink, these alternative housing forms might be the way of the future.
Need to know
Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
Killing of Qassem Suleimani
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Surianah's top five jazz artists
Billie Holliday: for the burn and also the way she told stories.
Thelonius Monk: for his earnestness.
Duke Ellington: for his edge and spirituality.
Louis Armstrong: his legacy is undeniable. He is considered as one of the most revolutionary and influential musicians.
Terence Blanchard: very political - a lot of jazz musicians are making protest music right now.
The Pope's itinerary
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
More from Rashmee Roshan Lall
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
