ULI Milan Affordable housing and urban regeneration

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ULI Milan 17.6.2014 Affordable housing and urban regeneration Professor of Planning and Urban Polcies Politecnico di Milano

outline 2 1. European and North American cities in emerging urbanisation 2. Affordable Housing as a key driver of urban change 3. Implications for urban (regional) regeneration

1. The accelerated change of cities In 1900 urban population reached 10%, in 1950 it was 28%, 50% in 2007, 70% in 2050 passing from 3.3 billion in 2007 to 6.4 billion in 2050 We reached 7,000.000.000 people in 2012, we added 1 billion in the last 12 years, to reach the first billion it took until 1804

Figure I. Urban and rural populations by development group, 1950-2050 4

World urban population (%): 1950 5 7 Source: Data from United Nations, World Urbanization Prospects, 2001 Revision (New York: United Nations Population Division, 2002), www.unpopulation.org. Brunn et al (2003).

World urban population (%): 2000 6 8 Source: Data from United Nations, World Urbanization Prospects, 2001 Revision (New York: United Nations Population Division, 2002), www.unpopulation.org. Brunn et al (2003).

World urban population (%): 2050 7 9 Source: Data from United Nations, World Urbanization Prospects, 2001 Revision (New York: United Nations Population Division, 2002), www.unpopulation.org. Brunn et al (2003).

The mega-city-region 9.. A series of anything between 10 and 50 cities and towns, physically separate but functionally networked, clustered around one or more larger central cities, and drawing enormous economic strength from a new functional division of labor. These places exist both as separate entities, in which most residents work locally and most workers are local residents, and as a parts of a wider functional urban region connected by flows of people and information carried along motorways, high-speed rail lines and telecommunications cables.. (Hall, Pain 2006)

US and EU 11 In the US the mega-city-regions are emerging as the result of an historical process of sprawling of cities. In EU it is a different phenomenon two large urban agglomerations: Paris and London; a considerable number of large city regions: Milan, Munich, Madrid, Stockholm and Helsinki, etc a dense network of small and medium-sized cities: in many regions in central, western and southern Europe; areas with very few urban centres in the north, in Spain and France, and in some Eastern European regions

US and EU 12 Europe and North America will not be any more the most urbanised areas but they could become the areas with the better capacity to use cities as resources towards sustainable development. In Europe in particular we have: Balanced urban system More liveable cities Committed and active citizens

2. Affordable housing a key driver of urban change 13 - The silent action of the housing market has been a powerful factor of the urban change and expansion - In Italy and in the area of Milan in particular this has been one of the driving forces for the expulsion of low income population including youth, working poor but more and more also middle class - The national choice towards home ownership since the end of the second WW seems arrived at its limits for economic, social and territorial reasons

14 Milano: 1972 (Global Land Cover Facility)

15 Milano: 2004 (ARPA Lombardia)

16 Urbanizzato 2000-2007 (Fonte DUSAF)

17 Urbanizzato 2000-2007 (Fonte DUSAF)

Pop in the Milan Urban Region 1951-2011 Var % Var % 2011 1991-2001 2001-2011 1951 1961 1971 1981 1991 Bergamo 681417 727758 807914 874035 909692 973129 1087401 7.0% 11.7% Como 361667 405975 476209 511425 522147 537500 587547 2.9% 9.3% Cremona 381816 351160 334281 332236 327970 335939 357473 2.4% 6.4% Lecco 216046 233069 265359 286636 295948 311452 336705 5.2% 8.1% Lodi 180436 172912 175844 179102 184025 197672 224393 7.4% 13.5% 2324717 2983903 3727841 3839006 3738685 3707210 3913254-0.8% 5.6% 1274154 1582421 1732000 1604773 1369231 1256211 1274311-8.3% 1.4% Prov. Milano di cui Comune di Milano 2001 18 Novara 274421 303481 327901 337271 334614 343040 364217 2.5% 6.2% Pavia 506511 518193 526389 512895 490898 493753 537620 0.6% 8.9% Piacenza 299138 291059 284881 278424 267633 263872 284711-1.4% 7.9% Varese 477055 581528 725823 788057 797039 812477 873241 1.9% 7.5% 5703224 6569038 7652442 7939087 7868651 7976044 8566562 1.4% 7.4% Regione urbana

Regional urbanisation in Italy Population density (2011)

Home ownership and home renting Elaborazione Sandra Annunziata 2014 20

Price convergence in urban regions Prezzo medio di compravendita degli edifici residenziali di ogni tipologia in stato conservativo «normale» ( /mq) (II sem. 2012) Fonte Agenzia delle Entrate

Demographic challenge Gen Y 15 mln Gen X 12 mln Boomers 15 mln Depression/Sile nt 11,5 mln

Demographic challenge Milan Municipality Population change 1971-2011: -28% -500.000 Over 65 years 1971-2011: +52% + 105.000 Milan Province Population change 1971-2011: +4% +150.000 Over 65 years 1971-2011: +130% +450.000 23

Prices of houses and incomes 1995 2000 2005 2010 Source: Baldini 2010

Housing for rent 25 Rent has been reduced to 18% from 40% in 1970 The renting sector is highly polarised but incomes are usually lower than in the home ownership sector The public sector production of social housing is disappearing they represent less than 4% at the national level they are progressively reduced through selling campaigns they were 1 million in 1990 and now they are 800.000 there was a production of 34.000 dw per year in 1984 and now they are 1.900 The new policy of social housing funds does not produce comparable results

Housing for rent 26 Rent has been reduced to 18% from 40% in 1970 The renting sector is highly polarised but incomes are usually lower than in the home ownership sector The public sector production of social housing is disappearing they represent less than 4% at the national level they are progressively reduced through selling campaigns: they were 1 million in 1990 and now they are 800.000 there was a production of 34.000 dw per year in 1984 and now they are 1.900 The new policy of social housing funds does not produce comparable or adequate results

3. Implications for urban and regional regeneration 27 The risk of the transformation of the central cities into platforms for activities must be contrasted, the progressive homogenisation and banalisation is the death of urban life urban workers, young populations, temporary populations, immigrants, small commerce, artists, start ups, must be protected through a renting policy The price convergence in the urban regions requires rent also in the former suburban areas The advantage of Italian and European urban landscape is the rich framework of liveable small and medium centers

3. Implications for urban and regional regeneration 28 This is probably good for new market opportunities, for the economic, social and environmental sustainability This is one of the key actions for urban and regional regeneration also in Italy Urbanity and attractiveness are directly linked to diversity Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody Jane Jacobs