Demand and supply of labour in the housing sector

The housing sector is large and significant in all aspects of human life, making the task of the policy-maker especially complex. Homes constitute the largest single land use in the ‘built environment’, they are generally the largest single item of expenditure in household budgets and the largest form of household wealth, and they are instrumental in our social networks and our psychological wellbeing. The scale and extent of the connections have complex impacts on, and are impacted by, both the demand for and supply of labour and the socio-ecological transition. The ageing of European populations, for example, will continue to influence the demand for housing in terms of location, size and services, which in turn will create jobs in construction, raw material acquisition and delivery, infrastructure (ranging from roads to medical services) and transaction activities (such as legal services, new furniture and fittings). The link between the geographical location of the family residence and of the workplace will be altered by further developments of ICT and home working, influencing the impact of housing sectors on the direct supply of labour. Of the many possible linkages and considerations for policy-makers in relation to the housing sector, this chapter focuses on three specific aspects. Section 4.1 examines the likely impact of energy renovation of the housing stock on jobs in the construction industry. Section 4.2 looks at possible developments in direct employment in mortgage markets. Section 4.3 examines how home ownership shapes the supply of labour. The final section offers policy recommendations.