THE FUTURE OF SOCIAL HOUSING - KEY ECONOMIC QUESTIONS

The merits of market and non-market, or social, housing provision are often debated on the basis of entrenched conceptions of market and bur eaucratic systems. From an economic perspective, this paper challenges the validity of traditional 'polar' arguments in support of state or market provision, concluding that there is no ex-ante case favouring o ne system over the other. In either case, the critical factor in effic ient production and management is the design of housing delivery syste ms, encompassing issues such Its external efficiency pressures, intern al incentive structures, controls over managerial discretion, and orga nisational structure. The paper considers key aspects of system design and concludes that appropriately configured not-for-profit producers should be able to operate as efficiently and effectively as profit-mak ing market providers and that they may have policy advantages in perio ds of adjustment to excess demand for housing.