IA “FACT” has already covered the problem of homelessness and the need to build social housing for vulnerable sections of the population on the example of Great Britain – one of the leading economies in Europe. It is interesting to investigate what challenges developed and developing economies face in this direction.
So, the British building boom, which British Labor dreams of, was in jeopardy even before it began. The promise to build 1.5 million houses by the end of the parliamentary term sounds ambitious, but the reality makes one doubt its feasibility. The main obstacle is the acute shortage of qualified personnel in the construction industry.
Officials admit that the training of workers is outdated and does not meet modern requirements. Apprenticeship programs are weak, and the construction profession does not attract young people due to its low prestige and negative perception in society. In addition, construction workers are getting older – one in four in Great Britain is over 50 years old, and there is a shortage of new workers.
The situation was worsened by Brexit, which limited access to skilled workers from Europe. Another problem is the outdated planning bureaucracy, which delays obtaining building permits. Added to this are environmental restrictions and disputes regarding the construction of green zones, territories intended for the preservation of the natural environment.
These challenges are leading to a housing crisis: not enough new homes are being built, prices are rising, and young families can’t afford housing. The economy is also losing jobs and investment that could have come from the construction boom.
To solve this problem, the government needs to simplify the planning system, use land more efficiently and create a large-scale worker training program. Investments in education, popularization of construction professions and involvement of young people are the keys to getting out of the crisis. Without this, the plan to build 1.5 million houses will remain unrealized.
The main challenges of the construction industry in the world
The challenges facing the UK construction industry are not unique. Many countries are experiencing similar challenges. A shortage of skilled workers, outdated planning systems and economic difficulties create a vicious circle that holds back large-scale construction projects.
There is also a shortage of young construction workers in the US and Germany, and many of those currently working will soon retire. Hard physical labor and relatively low wages make construction an unattractive choice for young people. In addition, the professional education system does not provide a sufficient number of new personnel. Many young people choose to work in other industries, particularly in technology or services, where working conditions are better. In the USA and Germany, there is also a shortage of foreign workers due to strict migration restrictions.
These problems have serious consequences. Due to the lack of personnel, construction projects are delayed, which affects the affordability of housing. Few new homes mean rising prices, leaving many unable to afford to buy or rent a home. This increases inequality and creates social tension. Those who remain in the industry are working overtime, which leads to burnout and reduced quality of work.
No less urgent is the problem of outdated planning systems. In France and Japan, construction processes are hampered by complex procedures for obtaining permits. This causes conflicts between the desire for ecological balance and the need to increase the housing stock.
Economic factors add more challenges to this. Thus, in Italy, the financing of new projects is limited by an unstable economy, and in India – insufficient transparency in the regulation of construction. At the same time, global demographic changes – urbanization and aging of the population – only increase the demand for new housing.
How the construction of social housing is organized in different countries
In order to solve the problem of lack of affordable housing, large-scale programs have been launched in some eurozone countries. For example, in Slovenia, the government decided to build public housing, to make rent cheaper for people. New houses will be built where they are most needed. The state will cover most of the costs in order to maintain control over prices. Housing will be modern, ecological and available for rent. This will help people who cannot afford comfortable conditions.
Social housing is an effective solution for many countries. For example, in Belgium, Mexico and the countries of the European Union there are programs that help thousands of families get a roof over their heads. For example, in Belgium, social housing occupies 6.5% of the market and is financed from the state budget. In some European countries, people can rent housing, and after a few years buy it on preferential terms.
A particularly interesting example is the self-help system in Mexico, which offers a unique approach. In Mexico, the state supports people who cannot afford to buy a home. Families are provided with financial assistance, building materials, technical support and even land plots. They build their future home with their own hands. The advantages of such “hand-built houses” are obvious: families reduce costs because they do part of the work themselves, joint construction brings people together and creates cohesive communities, each family can make their own home as it suits them.
Of course, this approach has its difficulties. Building a house on your own is hard work, which can be difficult for the elderly or those who are busy with their main job. In addition, due to the lack of professional skills, construction can be delayed. But thanks to the support of the state and charitable organizations, these problems can often be solved.
However, the Mexican experience illustrates how affordable housing can be created even with limited resources. This experience can be useful for other countries, especially those facing housing crises or the consequences of natural disasters.
The Mexican approach proves that with the support of the state, people not only get affordable housing, but can also participate in its creation themselves. It saves money, builds strong communities and can serve as an example for other countries looking for ways to address the housing shortage.
The situation in the domestic social housing market
There is also a shortage of construction workers in Ukraine, a problem exacerbated by war and economic hardship. Many specialists go to work abroad, where salaries are much higher. For example, in Germany, construction workers earn about 2,240 euros per month, and in Poland and the Czech Republic – 1,200-1,500 euros.
Another reason for the shortage of builders is the reduction of specialized educational institutions, which is especially critical, because the war has severely damaged houses and infrastructure in many regions, and builders are needed more than before. However, due to the shortage of workers, work is progressing slowly, delaying the recovery of the affected regions and the return of people to normal life.
To solve the problem, Ukraine needs to introduce modern technologies – modular construction, when parts of buildings are manufactured in factories and quickly assembled on site. This will save time and resources. Automated processes such as 3D printing or the use of drones for monitoring can also help.
In addition, it is important to raise the wages of construction workers, invest in their training and create better working conditions.
IA “FACT” already wrote about the housing crisis in Ukraine in the context of misunderstandings between developers and communities. Regarding the conjuncture for the construction of social housing, after the start of a full-scale war in 2022, the government declared about construction plans and purchase of housing for internally displaced persons. However, these initiatives were not fully implemented, and the issue of managing such housing remained open.
It is worth noting that the construction of housing for those who lost their homes due to the war has started in Ukraine. 6,000–8,000 apartments are being built in 15 cities, financed by international partners. Started last year constructionso nine new residential buildings in Ivano-Frankivsk, Ternopil, Khmelnytskyi and Novovolynsk. In these new buildings, the first 1,176 residents will be able to celebrate their housewarming by the fall of 2025.
In addition to state programs, charitable organizations and international donors are actively helping to build housing for the victims. To better coordinate their work, a special platform was created that combines resources and makes the process transparent. Through this program, they plan to collect 400 million euros in grants and loans. Thanks to modern technologies provided by international partners, construction is faster and more efficient.
Some organizations work on specific tasks. For example, the “United Humanitarian Front” builds houses for large families and those who have lost their homes. In the Kyiv region, the “My Home – Ukraine” fund repairs damaged houses, helping those who cannot solve this problem on their own. The Re: House platform brings together government and charitable resources for housing restoration.
Tangible help from international partners. Thus, the European Union finances the construction of energy-efficient housing for displaced persons in Zhytomyr. The UN supplies building materials for the repair of houses in Donetsk and Luhansk regions. Habitat for Humanity is restoring housing in the Kharkiv region, and USAID is financing the construction of new housing in the Dnipro region.
Tetyana Viktorova
