Tariq A. Al-Maeena

 

One of the major social concerns for many is the rising cost of renting an apartment and the apparent lack of a national consensus on how to address the problem of shortages in this sector.



It is not simply the lack of jobs or of opportunities that faces many young Saudis today.  The shortage of housing ranks high on the list of concerns. 



A gap between what is available in the market and what many Saudis can afford has left many people frustrated. A shortage of housing for low and middle-income families means that millions of Saudis cannot afford to buy a home.  Young Saudis are especially affected since it takes years of saving before many can afford to buy a home, which is often a requirement for marriage.



Some newlyweds have resorted to living with their parents because of their failure to find suitable and affordable housing in Jeddah’s real estate sector.  Their stay with their parents is only meant to last until they find the apartment of their choice, but for many this could be a question of several months or even years.



A young bank employee who is currently in such a situation tells me that he cannot afford the prices landlords are asking for rents today.  “They are indulging in uncontrolled price gouging and there is no way that I can afford something decent on my salary.  Even if my wife is to pitch in with her income, we would barely get by after paying one bill and the other,” he complains.  He adds that while his parents have been gracious and welcoming, it is the couple’s desire to move out on their own so that they can enjoy their privacy, but market prices have effectively barred them from doing so.



This young man is one of many who are unable to find appropriate housing at affordable prices.  Some studies report that as many as 70 percent of Saudis do not own their own homes even though nearly $70 billion was allocated in 2011 for the purpose of building entry level homes and establishing a new housing ministry.  The media at the time reported that the ministry would ensure the rapid construction of a half million new units for prospective buyers at affordable prices.



After nearly three years of waiting, many Saudis have become disillusioned and feel that the housing ministry that promised so much has delivered so little.  It was certainly not a lack of funds that was the factor.  The prices demanded by landlords and land owners have caused many to complain that the ministry has failed to provide Saudis with affordable housing.  

 

Daily criticism in the media about the ministry’s need to show results seems to be unable to penetrate the thick hide of the bureaucratic institution.  A local columnist even went so far as to suggest that the ministry’s bureaucratic housing loan programs had “actually created even more demand for homes, while the agency has almost completely neglected its duty to get more houses built.”



Many cannot understand why the Kingdom should face such a quandary, given the availability of vast tracts of land which sit undeveloped and unoccupied within city limits, as their owners bide their time and their greed increases.  There have been repeated calls for the heavy taxation of such tracts of land that sit for decades within urban centers without being developed as their owners seek to maximize their returns, but so far nothing has been done.  In Jeddah, the housing shortage is alarming and perhaps growing larger in a city whose population increases by approximately 160,000 people every year, and yet millions of meters of prime land sit uninhabited.



Coupled with unemployment, the rising shortage of housing must be regarded as a threat to the country’s national security.  Pompous bureaucratic announcements alone will not tackle the problem. Actions beyond words and speeches must bear quick and concrete results; otherwise more and more home seekers will find no means of realizing their dreams.

 

— The author can be reached at talmaeena@aol.com. Follow him on Twitter @talmaeena