Housing, mobility and labour markets

Abstract

Food, clothing, and shelter are considered necessities for sustenance of life on earth. The provision of the same can be made only if there are sufficient employment opportunities and an efficient wage system to go along with it. The wages determine the choice of housing for an individual which in turn affects the living conditions. Hence, housing and labour markets are of utmost importance for effective functioning of an economy. Housing and labour markets are highly intertwined with housing affordability impacting employment rates and an attractive labour market attracting hordes of people to the place of employment changing the dynamics of the housing market. As a result, the working of any market impacts the working of the other, many times, adversely. While this might be true, an efficient mobility solution can help ease frictions existing in these markets. It helps reduce congestion in centres of work, as a good transportation system makes it easier for people to travel to work, reducing adverse impacts on housing prices. It is interesting to note that while the problems are universal and some solutions have been put forth to ease the same, women continue to suffer. Since, these factors affect women in a much different way. While the dynamics are complicated enough, with Covid wreaking havoc, they have changed in a more complex way. Migration, work from home, the growing acceptance for remote work have weakened the linkage between these two markets. How these markets shape up in the future is what will determine their robustness to shocks and their impact on the lives of people.