As the world’s population grows, the demand for land increases and so does its value. Land becomes a scarce resource, and as such it is treated like a commodity that can be bought and sold at a profit. The effects of treating land as a commodity are problematic: it allows a minority to control access to land and deprive the majority of rent or profit, perpetuating inequality and poverty. This has led to those who own land becoming richer, while those who do not own land struggle to find affordable housing and are pushed out of their communities.
Furthermore, the current system of land ownership exacerbates economic inequality. Landowners can accumulate wealth just by owning land, while those who work for a living are forced to pay ever higher rents and mortgages to live on the same land. This system fundamentally promotes the concentration of wealth and power, often at the expense of the general public.
The problem is not limited to housing, either. Land ownership affects everything from agriculture to industry. Large corporations are able to buy up vast tracts of land, displace small farmers and indigenous communities and use the land for their own purposes, often without regard for the local environment or the people who live there.
Furthermore, short-term thinking motivated by the profit motive has led to environmental degradation, climate change and biodiversity loss. In 2021, over 1.6 billion people, or over 20% of the world’s population, were without adequate housing. The GINI index points to a growing global wealth gap affecting sectors such as housing, agriculture and industry.
Another point of contention is the historical injustices and inequalities perpetuated by private land ownership. Many indigenous communities continue to struggle for their rights to land and resources, while the accumulation of wealth on their ancestral lands continues.
Overall, the problem of land ownership is a global problem that affects people all over the world. It is a problem that needs to be urgently addressed as it leads to economic inequality, environmental degradation and the displacement of communities.
In this difficult situation, however, there are alternative land ownership models that are proving to be bright spots. One such model is Community Land Trusts (CLTs), which offer an innovative solution to these pressing problems. Another philosophy gaining traction is Georgism, which advocates for land as a public good and ensures that landowners pay a tax based on the value of the land, which would benefit the entire community.
Community Land Trusts (CLTs) are a potentially transformative, non-profit model of land ownership. These entities aim to create sustainable affordability and stability for communities by holding land in trust and selling or renting housing at prices 20-40% below the market average. They promote community control and sustainable and equitable land use, counteracting the negative impacts of speculative land practises.
All over the world, a rich network of CLTs and supporting organisations has emerged. The Grounded Solutions Network in the United States, for example, has acted as a catalyst, providing resources, training and technical assistance to CLTs.
There are several successful examples of CLTs around the world. Boston’s Dudley Street Neighbourhood Initiative, a CLT, manages over 225 permanently affordable housing units. Similarly, the East Bay Permanent Real Estate Cooperative and the Oakland Community Land Trust in California provide communities with platforms for cooperative acquisition and management of land and housing.
But CLTs are not without challenges. They often struggle with complex regulations, efficient land management and funding issues. Critics argue that CLTs may not offer the same opportunities for wealth creation and equity building as conventional home ownership, raising questions about residents’ long-term financial security.
The effectiveness of CLTs can vary significantly depending on factors such as the local property market, community engagement and the availability of finance. It is important to understand that while CLTs offer potential solutions, they are not a one-size-fits-all solution.
In addition to CLTs, other innovative land tenure models also offer viable alternatives. The Cooper Square Committee in New York and Burlington Associates are pioneering community-based affordable housing initiatives that offer potential solutions to the land and housing crisis.
While CLTs are a promising approach to equitable development and affordable housing, they are only one of many strategies in a complex ecosystem. Their success depends on understanding and addressing the local context and potential hurdles. In addressing the intersecting challenges of housing affordability, community development and land ownership, a broad, informed perspective and proactive exploration of different solutions are critical.
The system of private land ownership makes less sense in a world facing unprecedented environmental, social and economic challenges. By treating land as a public good rather than a private commodity, we can create a more equitable and sustainable system. This transition requires political will, innovative solutions and a commitment to social justice and environmental stewardship. It is time to rethink the way we view and manage land and create a future that is fairer, more prosperous and more sustainable for all.
