Editing Economy of Saudi Arabia (section)

===Housing===

50% of Saudi Arabia's citizens owned their own home in 2017, a rise from 30% in 2011 but below the international average rate of 70%.<ref>{{Cite web|url=http://www.arabnews.com/node/1233301/saudi-arabia|title=Nearly 50% citizens own houses in Saudi Arabia|date=26 January 2018|website=Arab News|language=en|access-date=23 December 2018|archive-date=5 July 2018|archive-url=https://web.archive.org/web/20180705150709/http://www.arabnews.com/node/1233301/saudi-arabia|url-status=live}}</ref> In 2011, analysts estimated 500,000 new homes per year were needed to match the growth in Saudi population, but as of early 2014 only 300,000 to 400,000 houses per year were being built.<ref name=Sloan>{{cite web|last1=Sloan|first1=Alastair|title=Saudi Arabia's housing predicament|url=https://www.middleeastmonitor.com/articles/middle-east/10030-saudi-arabias-housing-predicament|website=Middle East Monitor|access-date=11 June 2014|ref=28 February 2014|archive-url=https://web.archive.org/web/20160304060135/https://www.middleeastmonitor.com/articles/middle-east/10030-saudi-arabias-housing-predicament|archive-date=4 March 2016|url-status=dead}}</ref>

One problem is that the government Real Estate Development Fund (REDF)—which provides 81% of all loans for housing—had an 18-year waiting list for loans due to pent-up demand. Another is that the REDF's maximum loan is 500,000 SR ($133,000), while in 2012 the average price for a small free-standing home in Riyadh is more than double that—1.23&nbsp;million SR ($328,000).<ref name=house-176>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future| publisher=Knopf |year=2012 |page=176}}</ref> However, as part of the economic reforms undertaken by the government to enhance national living standards, new funding solutions have been established to boost the mortgages for existing and new borrowers to help finance their housing plans. This was announced in August 2018 by the Minister of Housing, Mr. Majed Al-Hogail.<ref>{{Cite web|url=http://www.arabnews.com/node/1353201/business-economy|title=New mortgages to boost home ownership in Saudi Arabia|date=8 August 2018|website=Arab News|language=en|access-date=23 December 2018|archive-date=26 August 2018|archive-url=https://web.archive.org/web/20180826155145/http://www.arabnews.com/node/1353201/business-economy|url-status=live}}</ref>

A major reason for the high cost of housing is the high cost of land. In urban areas, the price of land has been bid up because nearly all of it is owned by the Saudi elite (members of the royal family or other wealthy Saudis), who have lobbied the government for land "giveaways".<ref name=Sloan/> Landlords have seen prices rocket by 50% from 2011 to 2013.<ref name=Sloan/> The owners benefit from these price increases as they hold the land for future development.<ref>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=106|quote=A second youth video, ''Monopoly'', highlighted the near impossibility of owning a home in Saudi Arabia because a monopoly on land ownership by royals and other wealthy Saudi has put the price of land out of reach of a majority of Saudis. It struck a responsive chord in the population.}}</ref><ref name=House-151>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=151|quote=In or around population centres, much of the open land is owned by various princes or a few wealthy families who are holding it for future development and profit.}}</ref> To deal with the key "land banking" issue, the Minister of Housing suggested in 2013 that vacant property within city limits could be subject to a tax. However, no firm plans for any tax have been unveiled.<ref name=Sloan/>