We might have one of the best economies in the world, and yet hundreds of people in Malta wake up every day in housing that is run-down, overcrowded, or dangerous. Many others have lost their homes altogether and ended up homeless. There are, then, those who worry that their children or future children will not be able to afford a decent home while parents continue to help, or are expected to help, their children financially to rent or buy their own home. Bad housing robs us of security, health, and a fair chance in life.

It is hard to argue that housing is not a fundamental human need. Decent, affordable housing should be a basic right for everybody in this small but overpopulated country. The reason is simple. Without stable shelter, everything else falls apart. We as a country have always acted like we could not find the money to solve this home affordability crisis, which implies that we are not spending it now. Yet we are spending it now, only that we are ostensibly spending it on adverse health and bad outcomes.

There are myriad factors that affect our housing market, such as credit market conditions, population density, characteristics of the local economy, socio-economic factors, demographics, physical constraints, the market power of developers, and many more. Make it easy to build new homes, and housing costs will fall; make it difficult to build new homes, and housing costs will rise. Maltese housing costs, meanwhile, have risen to among the highest levels ever for both buyers and renters. There is a net social cost to all this, and it is gigantic. The housing shortage depresses living standards, especially among the least well-off. Non-homeowners have to reserve a good part of their household budget for housing costs, and many more rely on housing benefits. And those are just the visible effects.

More significant tax generation, the creation of jobs, opportunities for economic development, increased job retention and productivity, and the ability to address inequality are among the possible economic benefits of increased access to quality, affordable housing. The impact of high housing costs in Malta, both rental and homeownership, has only grown. Freeing our national economy from the drag created when housing is unaffordable helps everyone.

So if the housing shortage causes so many severe economic and social problems and if its causes are so well established, why is nothing being done about it? Do not politicians of all stripes now agree on the need to expand the housing supply? Is it not time to come to grips with the bare, albeit unpleasant, facts?

The problem is that as soon as somebody actually puts a shovel to the ground, there will be resistance from some local "pressure" group, and as soon as the issue becomes tangible, politicians always side with the group. This is politically rational. The opponents of housebuilding are far more politically active and infinitely better organised than those who stand to gain from new housing. You will not hear the voices of low-income renters or young adults who cannot afford to move out of their parents’ home, let alone people lingering on a social housing waiting list. Planning is a tug-of-war of sorts, but one in which one team is not even grabbing their end of the rope.

Consequently, our housing policy revolves around the sensitivities of those who dislike the sight of houses other than their own. When you hear politicians express support for more housing, do not take it at face value. Chances are that the next time they meet with representatives of their local anti-development lobby, they will equally assure them of their full support.

We must find a way out of the housing trap and identify what needs to be done to sort out the housing market. To a large extent, it is about getting economic incentives right. Communities that permit development must see real benefits, and communities that choose to be obstructionists must bear at least some of the social cost of their obstructionism. We need a more honest housing debate. We need to stop wasting our time with all those sideshows and red herrings that explain at best a tiny fraction of the housing cost explosion and focus instead on the real causes. On topics like housing, do not trust your gut feelings. They are probably wrong.

We are trying to come out of the worst economic downturn for decades. The impact of the credit crunch and recession on the housing market has long been felt across the country. Behind those occasionally related headlines are the individual stories of people being repossessed, suffering from overcrowding, and struggling to find a decent, affordable home. Even before the recession, the lack of affordable housing in Malta was starting to dictate how people lived their everyday lives. The recession has made this worse, and in spite of a record building boom, we are now at crisis point.

There are too many far-reaching consequences of our housing crisis, including the way unaffordable housing affects relationships, job prospects, mental health, and even the family nucleus. We must also look at the emotional cost apart from the financial aspect, for a home is not just a financial asset but the bedrock of security and stability. Housing instability can seriously jeopardise children’s performance and success in school and contribute to long-lasting achievement gaps. Quality, affordable housing helps create a stable environment for children, contributing to improved educational outcomes. Housing is no longer simply a concern for low-income households but an issue for everyone. If nothing is done, it could mean we sleepwalk into an even bigger housing crisis, affecting generations to come.

I believe all political parties must recognise that solving our housing crisis is as fundamental as health and education. The situation is unacceptable, and we need to act now.