Case Study: The Dilemma of Affordable Housing

In a rapidly growing city, there is a severe shortage of affordable housing options for low-income families. The municipal government is facing a difficult decision regarding how to address this issue. Two options are being considered: constructing high-rise apartment buildings in a low-income neighborhood or displacing the existing community to build upscale condominiums. In this regard, the following are some important points to ponder:

The society’s stakeholders have recently shown the following concerns about these two options:

a) Low-income families in need of affordable housing

b) Current residents of the low-income neighborhood

c) Developers and investors interested in high-rise apartments or upscale condominiums.

d) Municipal government and local authorities responsible for urban planning

e) Advocacy groups focused on housing rights and social justice.

According to the utilitarian analysis, the following are the concerns for building high-rise apartments and co-operative societies as option one:

Constructing high-rise apartment buildings in the low-income neighborhood would provide affordable housing options for low-income families. This would improve their overall well-being, granting them access to safe and affordable housing. However, the existing community may face disruption due to construction activities, noise pollution, and changes in the neighborhood's dynamics.

The below significances indicate the Consequences of Building Upscale Condominiums as option two:

Building upscale condominiums would attract wealthier residents to the area, potentially revitalizing the neighborhood and generating economic benefits. However, this would displace the current low-income residents, who may struggle to find affordable housing elsewhere. The overall happiness and well-being of the low-income families would be negatively affected.

Following are the requirements Utilitarianism states from the viewpoint of Ethical Considerations:

• The Principle of Greatest Happiness: Utilitarianism prioritizes the greatest happiness for the greatest number of individuals. In this case, the well-being of low-income families should be the primary consideration. Constructing high-rise apartments aligns with this principle by maximizing overall happiness and meeting the urgent need for affordable housing. 
• Fairness and Justice: Utilitarianism raises questions of fairness and justice. Displacing the existing low-income community for upscale condominiums could perpetuate social inequalities and disproportionately impact vulnerable populations. Constructing affordable housing promotes fairness and justice by addressing the housing needs of those who are poor.
• Long-Term Consequences: Utilitarianism requires considering the long-term consequences of actions. Providing affordable housing options can contribute to social stability, improved educational opportunities for children, and enhanced community cohesion. These positive outcomes align with the long-term well-being and happiness of the affected individuals.

Required: As a Business Ethics student, you are required to answer the following questions.

            a) How does utilitarianism guide decision-making in the case of the affordable housing dilemma? Discuss the key ethical considerations involved.

            b) Assess the potential consequences of building upscale condominiums for the low-income community. How does utilitarianism address the ethical concerns in this scenario?

Solution:

a) Utilitarianism guides decision-making in the case of the affordable housing dilemma by prioritizing the principle of the greatest happiness for the greatest number of individuals. In this case, the well-being of low-income families is given primary consideration. By constructing high-rise apartment buildings in low-income neighborhoods, the utilitarian approach seeks to maximize overall happiness and meet the urgent need for affordable housing. This decision takes into account the immediate well-being of low-income families by providing them with safe and affordable housing options.

The key ethical considerations involved in this decision are:

• Principle of Greatest Happiness: Utilitarianism emphasizes the importance of maximizing overall happiness. Constructing high-rise apartments aligns with this principle by addressing the housing needs of low-income families and improving their overall well-being.

• Fairness and Justice: Utilitarianism raises concerns about fairness and justice. Displacing the existing low-income community to build upscale condominiums could perpetuate social inequalities and disproportionately impact vulnerable populations. By prioritizing affordable housing options, utilitarianism promotes fairness and justice by addressing the housing needs of the poor.

• Long-Term Consequences: Utilitarianism requires considering the long-term consequences of actions. Providing affordable housing options can contribute to social stability, improved educational opportunities for children, and enhanced community cohesion. These positive outcomes align with the long-term well-being and happiness of the affected individuals.

b) Building upscale condominiums in low-income communities would have potential consequences for low-income residents. Utilitarianism addresses the ethical concerns in this scenario by considering the impact on overall happiness and well-being.

The potential consequences of building upscale condominiums for the low-income community include:

• Displacement: The low-income residents would be forced to find alternative housing options, which may be unaffordable for them. This displacement can disrupt their lives, create emotional distress, and lead to instability.

• Increased Inequality: The construction of upscale condominiums may attract wealthier residents and contribute to gentrification, further widening the wealth gap and exacerbating existing social inequalities.

• Loss of Community and Support Networks: The current low-income community may lose their social support networks, which are crucial for their well-being. Disrupting their community can lead to isolation and a loss of belonging.

Utilitarianism addresses these ethical concerns by considering the overall happiness and well-being of the affected individuals. In this case, constructing high-rise apartments to provide affordable housing options aligns with utilitarian principles. It prioritizes the housing needs of low-income families and aims to improve their overall well-being. By focusing on the greatest happiness for the greatest number, utilitarianism aims to mitigate the negative consequences faced by the low-income community and promote a more equitable and just solution to the affordable housing dilemma.