When pitching for success the key question to ask yourself is “what problem are we solving?”. Not only do the problems define the context of any solution, the problems we are trying to solve also reflect the purpose of our endeavours; there are problems we find because we seek to make money and there are problems we decide to face to make meaning.
Problem #1: Access to capital
It has become increasingly hard for a younger generation to find access to capital to buy property as mortgage policies across all major banks are stiffening and tightening. The issue has been covered by Dutch media in 2016 all the way through recent publications in May 2019. New rules require a younger generation of home buyers to bring savings to the table. New policies disallow home buyers to finance purchasing costs with their mortgage. Combined with high prices and fierce competition from investors, these regulations are making it extremely hard for a younger generation to purchase property. Even though purchasing is still the preferred option amongst youngsters to acquire a home reports say.
Problem #2: High Prices
The housing market in Amsterdam is booming. The high property prices are pushing a younger generation outside of city walls as it’s no longer economically viable for them to buy property there or to financially compete with investors pursuing buy-to-let strategies. On average the budget of first time home buyers is 35% below property prices averaging the required personal savings at 100k euros. Additionally, the need to rent is boosting demand and is pushing up rental prices even further hurting the affordability of housing in the city for, amongst others, a younger generation.
Problem #3: lack of wealth
Needless to say, people paying rents do not profit and they do not accumulate wealth. It widens the gap, setting us up for a disastrous urban economic landscape as the capitalist system thrives. We are not discarding capitalism nor the free market and investor, producer, consumer dynamics. We just believe — and know — that we can do better when it comes to creating and distributing economic value for all stakeholders. Economic inclusion, in particular for new generations.
Recent years of economic crisis have made younger generations poorer and many of the younger generation hold debt as they’ve engaged in government programs to finance their education.
Urbanisation
Additionally there’s the problem of rapid urbanisation. About 68% of the world’s population is going to live in cities by 2050. Today that is already 55% as stated by the United Nations. The challenge of urban planning, the sustaining of a diverse urban population and the nurturing of a creative and innovative urban culture is more important than ever before.
There is no such thing as a successful city without human capital — Edward Glaeser, Harvard University
Additionally, smart cities are on the agenda of almost every major city aiming to leverage data and the interconnectedness of things with 5G technologies. Unfortunately, those generations capable of truly propelling cities into innovative (tech-driven) places are being excluded because of simple economic reasons.
Climate Change
The subject of climate change cannot be ignored. Scientists are warning us over and over again. Unfortunately, even in the most wealthy countries, we cannot seem to pivot and change our habits to ultimately and significantly decrease our carbon footprint. Buildings account for 6% of the total global carbon footprint. These 6% represent onsite energy generation and burning fuels for heat, excluding the emissions from electricity use in buildings. Other reports state that the construction and maintenance of Real-Estate accounts for 40% of GHG emissions. Moreover, as human beings that sprouted from an industrial revolution, we cannot seem to adjust our lifestyles to care for mother nature, while she cares for us (but won’t actually care if we live to see another day).
New generations, millennials to gen-z, are the key to setting an example in “green” living. They care and we have left them with a hell of situation. Young people are leading the way on climate change (Harvard Business Review).
How wonderful life can be if we can set them up with an economic system, leveraging emerging technology, that will allow them to live in cities more affordably and (while respecting investors’ ROI) simultaneously accumulate wealth so they can change city life from the inside-out.
