Affordable housing is not just a collection of construction material and land costs. It’s a purse that must stretch to cover a rental or purchase . . . after any and all other essential costs have been plucked out. Food and utility costs are some obvious essentials.
This series of articles covers essential costs or benefits that might not seem so obvious, but nonetheless, depending on how they are structured, can turn affordable housing into unaffordable housing.
Public Transit
Luxembourg is completing a major upgrade to its public transit system, to the tune of 2.2 billion Euros by 2023.
And that’s not all. Starting March 1, 2020, all passengers will be able to ride free of charge. The measure has been presented as part of a strategy to increase the purchasing power of residents and workers with low incomes.
Some potential beneficiaries don’t plan to take advantage of free transit, noting the expense of a car more than makes up for long and inconvenient commutes.
Some experts question the merits of free transit when there are more pressing issues, affordable housing, for example. This begs the question: how does this help with affordable housing, anyway?
The BBC spoke with one person who takes transit now and earns minimum wage, one of the people who should benefit from free transit. He will have 50 more Euros per month in his pocket starting March 1, 2020: his housing will be more affordable than it is today. See at the BBC: The Cost of Luxembourg’s free public transit plan
