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 The Global Housing Crisis

Chapter 1:
The Global Housing Crisis

Quick facts Policy points

1. Global housing inadequacy has reached unprecedented levels, 1. Strengthen the social function of housing by ensuring
with billions lacking adequate shelter and nearly half of all that its economic value does not overshadow its role in
households struggling with unaffordable housing costs. promoting well‑being, equity and the common good.

2. Five interlinked forces – unaffordability, displacement, 2. Embed adequate housing in national development
informality, climate risks and declining liveability – now shape frameworks to advance economic inclusion, health,
the global housing crisis and require coordinated, system‑wide climate resilience and social cohesion, supporting
action. progress across multiple Sustainable Development Goals.

3. Rapid urbanization, rising land values, widening inequality, 3. Implement comprehensive housing frameworks that
financialization and intensifying climate impacts are deepening integrate all dimensions of adequacy to build equitable,
housing deficits faster than governments can respond. resilient and sustainable housing systems.

4. Climate change is accelerating housing risks worldwide, 4. Pursue integrated affordability strategies that strengthen
with escalating hazards destroying homes, driving massive land governance, diversify rental and non‑market
economic losses and disproportionately impacting vulnerable housing, simplify regulatory processes and deploy
communities. targeted finance to close persistent affordability gaps.

5. The housing sector is a major global economic engine, 5. Strengthen informal and community-led housing by
generating substantial GDP and employment with the potential securing diverse tenure, upgrading informal settlements
to promote inclusive and sustainable urban development. and investing in essential infrastructure to create
scalable, resilient and inclusive housing pathways.

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WORLD CITIES REPORT 2026

Adequate housing is essential for the health, well-being and welfare of of housing: one that goes beyond viewing housing merely as shelter
humanity. Improved housing conditions can save lives, prevent diseases, or a collection of physical units. It emphasizes the social function of
increase quality of life and reduce poverty,1 particularly when the housing housing as a foundation for human well‑being, community formation,
improvements are targeted at vulnerable groups that live in inadequate
housing conditions.2 Dwellings that meet standards of housing adequacy The World Cities Report 2026 adopts a
are associated with greater life satisfaction3 and higher psychological holistic understanding of housing: one
well-being.4 Access to adequate and affordable housing also provides that goes beyond viewing housing merely
children with consistent learning experiences, without the disruptions as shelter or a collection of physical units
that result from involuntary and frequent residential mobility.5 In
addition, the home is an important source of identity and a sense of and opportunities to thrive. Although this broader perspective is well
belonging.6 Through housing use, design and modification, people attach understood among housing experts, in practice much housing continues
meaning to their lives and communities.7 to be developed through a narrow, unit‑focused lens. This has led to
housing built in locations that are removed from employment and
Besides these wide-ranging benefits, housing is also a major contributor activity nodes, with schools, healthcare, recreational and other ancillary
to the economy and a driver of wealth and prosperity. Investment in facilities taking years to materialize, if at all.11
housing is an important source of economic growth and employment,8
with the construction sector generating employment in other sectors The progressive realization of the right to adequate housing has long
of the economy through various backward and forward linkages. For been recognized in international treaties and development agendas,
instance, sustained investment in housing can lower construction and such as the Universal Declaration of Human Rights, the 2030 Agenda for
maintenance costs through economies of scale, catalyzing further growth Sustainable Development and the New Urban Agenda (NUA). Housing
and stimulating demand for other goods and services linked to housing has also been recognized by the United Nations General Assembly as
– thereby providing governments with revenue to generate further a key foundation of social development.12 This rights-based framework
development.9 Investment in housing can have co-benefits for health and provides the foundation for UN-Habitat’s own work on housing and
well-being. To take one example, improvements in thermal insulation can underpins the analysis throughout this report. At a tangible level, the
enhance health, while lowering costs on energy consumption.10 adoption of these instruments has been reflected in recent years in a
shift in national housing policies in many countries, with a renewed
In line with international treaties and development agendas (Box focus on progressive approaches such as in situ upgrading (something
1.1), the World Cities Report 2026 adopts a holistic understanding discussed in more detail in Chapter 2).

Bikers in Placetas, Cuba © UN-Habitat/Hector Bayona

2
 The Global Housing Crisis

The concept of adequate housing is multidimensional. A key point of As demonstrated repeatedly in this report, the provision of adequate
reference in realizing the role of housing to drive societal progress are the housing is key to inclusive, equitable and sustainable development
seven dimensions of adequate housing that have been defined through outcomes. It is integral to seven Sustainable Development Goals (SDGs),
the United Nations Committee on Economic, Social and Cultural Rights including SDG 1 on ending poverty, SDG 6 on clean water and sanitation,
(CESCR): namely, security of tenure, availability of services, affordability, SDG 11 on sustainable cities and communities and SDG 13 on climate
habitability, accessibility, location and cultural adequacy.13 The human action. Housing also directly supports progress on six additional SDGs,
right to housing is an essential part of the “right to the city”. This such as SDG 8 on decent work and economic growth, SDG 10 on
report is structured to cover the seven dimensions of adequate housing reducing inequalities, and SDG 12 on responsible consumption and
identified by CESCR, with the additional dimension of environmental production.15
sustainability: though not originally included by CESCR, the increased
impact of climate change on housing necessitates including it explicitly Adequate housing is also essential for realizing the three transformative
in the definition of adequate housing (Figure 1.1).14 commitments of the NUA: promoting sustainable urban development
for social inclusion and poverty eradication; fostering inclusive and
This report is also premised on the notion that adequate and affordable sustainable urban prosperity and opportunities for all; and advancing
housing serves as an enabling condition for accessing a broader range environmentally sustainable and resilient urban development. Comparing
of benefits. A house is more than just a place to live in: it is integral to indicators from the Adequate Housing Index16 and a set of development
health, education, economic prosperity and the ability to participate in outcomes that reflect progress toward the SDGs, the close relationship
the community on an equal basis. between them is evident (Box 1.1).

Figure 1.1: Dimensions of adequate housing

Availability of services, materials, facilities and infrastructure

All people should have sustainable access to natural and common resources, safe
drinking water, energy for cooking, heating and lighting, sanitation and washing
facilities, means of food storage, refuse disposal, site drainage and emergency services

Affordability Accessibility
Housing costs should be at such Housing must be accessible to those
a level that the attainment and entitled to it, including disadvantaged
satisfaction of other basic needs people such as older persons,
are not threatened or compromised persons with disabilities or persistent
medical problems, and children

Realizing
Habitability the Right to Location
Housing should provide adequate Adequate Housing must be in a location
space and protection from cold, Housing which allows access to
damp, heat, rain, wind or other employment options, health
threats to health, structural care services, schools, childcare
hazards, and disease vectors centres and social facilities

Legal security of tenure Cultural adequacy

All people should possess a degree of security The way housing is constructed, the building materials used
of tenure which guarantees protection against and the policies supporting these must appropriately enable
forced eviction, harassment and other threats the expression of cultural identity and diversity of housing

Source: Adapted by UN-Habitat from CESCR, 1991.

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WORLD CITIES REPORT 2026

Box 1.1: Correlating the Adequate Housing Index with sustainable outcomes

The Adequate Housing Index provides a standardized framework for assessing housing adequacy across 64 emerging economies,
based on seven household‑level dimensions: access to improved water, improved sanitation, adequate living space, durable
materials and structural quality, security of tenure, access to electricity and access to clean cooking. These dimensions are
combined into a single index ranging from 0 to 1, with higher scores indicating greater levels of housing adequacy. The figures
below illustrate the relationship between housing adequacy and key development outcomes. With the exception of inequality,
housing adequacy shows a strong and consistent association with improved outcomes in income, health, poverty reduction, as
well as the prevalence of slums and informal settlements. In particular, as demonstrated in the graphs below, adequate housing
correlates directly with a number of key sustainable development targets.

No poverty (SDG 1): Adequate housing is strongly associated with lower levels of poverty, as shown in the graph, underscoring
its central role in poverty reduction. Beyond its economic value, adequate housing provides stability, safety, protection and
social inclusion, all of which help prevent households from falling into poverty. Access to adequate housing enhances the
ability of low‑income households to improve living standards and pursue income‑generating opportunities. Durable, safe, and
climate‑resilient housing is also critical for reducing vulnerability to shocks, in line with SDG Target 1.5. Aligning housing provision
with social, economic and environmental strategies enables governments and development partners to reduce multidimensional
poverty, break cycles of vulnerability and build more inclusive, resilient and equitable urban communities.

Good health and wellbeing (SDG 3): As shown in the graph, higher housing adequacy is strongly associated with lower
under‑one and under‑five mortality rates, as well as longer life expectancy. Housing conditions that include improved water,
sanitation, hygiene and resilient infrastructure significantly reduce exposure to waterborne diseases such as cholera, as well
as communicable and non‑communicable illnesses linked to unsafe water, pollution and environmental contamination, directly
supporting progress toward SDG 3 on ensuring healthy lives. Improving the physical quality of housing through retrofitting older
dwellings to reduce indoor air pollution, prevent mould growth and enhance ventilation has been found to lower the risk of
respiratory conditions including asthma and allergies. Ensuring more equitable housing access is key to alleviating global health
inequalities.

Decent work and economic growth (SDG 8): The figure shows a strong positive correlation (0.91) between adequate housing and
income, measured by GDP per capita, consistent with World Bank findings.17 Improved housing affordability also reduces financial
strain on households, enabling greater investment in education, skills development and other essential needs that enhance
employability and earning capacity. In addition, the housing sector itself is a significant driver of economic growth, generating
employment in construction, real estate and related industries and contributing directly to SDG Targets 8.3 and 8.5. In essence,
adequate housing forms a foundation for higher and more stable incomes, supports inclusive and sustained economic growth, and
expands access to economic opportunities in line with SDG 8’s vision of productive employment and decent work for all.

Reduced inequalities (SDG 10): The graph indicates a negative, though not statistically significant, relationship between housing
adequacy and inequality, suggesting that better housing conditions are generally associated with lower levels of inequality.
Adequate housing can play a key role in reducing disparities, promoting inclusive development and supporting upward mobility.
Ensuring access to safe, secure and affordable housing helps mitigate visible forms of inequality, including spatial and social
segregation. Providing equitable, non‑discriminatory housing opportunities is essential for advancing the goals of SDG 10,
particularly Target 10.2, which calls for the social, economic and political inclusion of all.

Sustainable cities and communities (SDG 11): Addressing slums and informal settlements requires a multifaceted strategy that
includes expanding access to adequate and affordable housing, upgrading existing settlements, strengthening security of tenure
and ensuring reliable access to essential services such as water, sanitation and electricity. Tackling the root causes of housing
inadequacy, governments and partners can prevent the formation of new slums and support the development of sustainable,
resilient and inclusive cities. These efforts reinforce progress toward multiple SDGs, alongside SDG 11.1: in this way, adequate
housing contributes not only to the reduction of slum conditions but also to more resilient and sustainable cities.

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 The Global Housing Crisis

Adequate Housing Index and Natural Log of GDP per Capita Adequate Housing Index and Infant Mortality Rate
Base Year 2019 Base Year 2019

1 1
Adequate Housing Index (AHI)

Adequate Housing Index (AHI)

Corr(r) = 0.9050 Corr(r) = -0.8622
.8 .8

.6 .6

.4 .4

.2 .2

0 0
5 6 7 8 9 10 11 5 10 20 30 40 50 60 70
Natural Log (LN) gdp PER CAPITA, PPP (current international $) Mortality rate infant (per 1,000 live births)

Adequate Housing Index and Under 5 Mortality Rate Adequate Housing Index and Poverty headcount ratio ($3 a day)
Base Year 2019 Base Year 2019

1 1
Adequate Housing Index (AHI)

Adequate Housing Index (AHI)

.8 .8

.6 .6

.4 .4

.2 .2
Corr(r) = -0.8551 Corr(r) = -0.6961
0 0
5 20 40 60 80 100 120 5 10 20 30 40 50 60 70 80 90
Mortality rate under 5 (per 1,000 live births) Poverty headcount ration at $3.00 a day (2021 PPP)
(% of population)

Adequate Housing Index and Gini Index Adequate Housing Index and Population living in slums
Base Year 2019 Base Year 2019

1 1
Adequate Housing Index (AHI)

Adequate Housing Index (AHI)

.8 .8

.6 .6

.4 .4

.2 .2
Corr(r) = -0.0503 Corr(r) = -0.8044
0 0
20 25 30 35 40 45 50 55 60 65 0 10 20 30 40 50 60 70 80
Gini Index Population living in slums (% of population)

AHI (Adequacy Housing Index) Fitted Values

Source: WorldBank - World Development Indicators databank

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WORLD CITIES REPORT 2026

Figure 1.2: The different intersecting components of the housing crisis

Sustainability
The challenge of
Climate-resilient building climate- Climate change is
design can involve resilient housing an increasing driver
higher up-front costs of displacement

Affordability Displacement
The challenge of Displacement creates The challenge
making housing pressure on existing of mitigating the
affordable housing markets destruction
for all of housing
Informal settlements
are most at risk of
climate shock
Lack of affordability drives Lack of affordability
peripheral construction of in formal markets Many displaced people
housing that are often not drives informal resort to informality
well integrated in the city housing development to sustain livelihoods

Liveability Informality
The challenge The challenge
of integrating of leveraging
housing into informality
the city for housing
Informal settlements often
lack the services that
integrate them into the city

1.1 Addressing the Global Housing Crisis This section unpacks the housing crisis in terms of the five main
intersecting challenges that emanate from the housing crisis: affordability,
Despite the importance of housing, its role as a critical driver of societal displacement, informality, sustainability and liveability (Figure 1.1). These
progress has not fully been realized. Currently, the world is facing a broad-based issues have been identified because they are pervasive across
housing crisis that is more severe than ever before. While the provision of different contexts, have profound impacts on achieving adequate housing
housing has always faced difficulties, especially in urban areas, the past two across the world, and are critical levers for action.
decades have witnessed rising prices, low supply, massive displacement
and limited upgrading, among other issues – all of which have led to What becomes clear though from the range of challenges is that there is no
severe shortages that have made access to adequate housing one of single “housing crisis”.18 Rather, what exists is a series of interconnected
the intractable challenges of our time. Both developing and developed pressures and failed systems, explored in more detail in various chapters
countries alike are affected by the housing crisis, with urban areas where of this report. What this means is that none of the challenges can be
housing conditions are already strained being disproportionately affected. addressed in isolation. The housing crisis is multidimensional, and so the
response needs to be multidimensional too: coordinated, cross-cutting
research and action on housing is more important than ever (Box 1.2).
The housing crisis is multidimensional, and so
the response needs to be multidimensional too

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 The Global Housing Crisis

Box 1.2: The Open‑ended Intergovernmental Expert Working Group on Adequate Housing for All

In 2023, the UN‑Habitat Assembly established the Open‑ended Intergovernmental Expert Working Group on Adequate Housing
for All (OEWG‑H) through resolution 2/7.19 The Group was mandated to recommend policies that accelerate progress towards
universal access to adequate, safe, sustainable and affordable housing; assess global efforts; identify best practices; develop
a framework for measuring and reporting on adequacy; and map multilateral and bilateral support. Working under a multi‑year
roadmap to 2029, the OEWG‑H advances thematic work on housing finance, security of tenure, homelessness, social housing
and the upgrading of informal settlements. It is also developing a publicly accessible housing knowledge platform to compile
disaggregated data, tools and case studies for policymakers. Through this work, the Group provides targeted, actionable
recommendations to promote inclusive, safe and affordable living conditions for all.20

1.1.1 The scale of the housing crisis: an overview In addition, urban displacement has created a large and growing
Although the language of “crisis” often implies a temporary breakdown population of internally displaced persons (IDPs), refugees and evictees,
that can be corrected by returning to a previous period of effective who face a range of profound challenges, including lack of access to
functioning, the reality is that adequate housing for all has never been housing. Given the complex nature of the displaced population’s needs,
achieved at any point in human history. The term “crisis” is therefore particularly those uprooted by conflict or natural disasters, their situation
used in this report to reflect the unprecedented magnitude and is often framed as a humanitarian crisis. Yet access to housing – both in
acceleration of housing need, at a time when the population living in terms of immediate shelter and longer-term accommodation that is safe,
slum conditions is now the largest on record and the number of people adequate and affordable – is a crucial challenge for displaced groups and
internally displaced from their homes in 2024 reached its highest level can play a decisive role in determining their long-term well-being and
to date.21 In reality, these groups are to some extent overlapping and integration. As of the end of 2024, 123.2 million people were displaced
difficult to quantify exactly, but what emerges is a situation where globally due to persecution, conflict, violence or human rights violations,
a sizeable proportion of the urban population – in the case of many more than twice the number recorded a decade before,26 with a further
developing countries and low-income neighbourhoods, the large 9.8 million people internally displaced by natural disasters.27
majority – are living with some degree of housing inadequacy.
From political instability to climate change, the drivers of displacement
People living in informal settlements and slums do have housing, but few have direct implications for the global housing crisis. In addition,
of the dimensions of adequate housing are met in such neighbourhoods. according to new research by UN-Habitat undertaken for this report, at
They face precarious living conditions characterized by inadequate least 64 million people were displaced by urban development between
water supply, unsanitary environmental conditions, overcrowded and 2003 and 2023. This figure highlights the hidden epidemic of evictions,
dilapidated habitation, hazardous location and insecurity of tenure, a significant but under-reported form of displacement that is generally
among other issues. More than 1.1 billion people currently live in excluded from headline figures on global displacement. These issues are
informal settlements and slums. The proportion of the urban population discussed in more detail in Chapter 4.
living in slums globally has been declining for decades, from 31.2
per cent in 2000 to 24.8 per cent in 2022. However, the absolute
However, housing inadequacy
numbers are still increasing. Three regions – Central and Southern Asia
extends beyond those
(334 million), Eastern and South-Eastern Asia (363 million) and Sub-
without homes or living in
Saharan Africa (265 million) – account for more than 85 per cent of the
informal settlements
total population living in informal settlements.23 Chapter 5 discusses
these figures in greater detail. However, housing inadequacy extends
beyond those without homes or living in informal settlements. Overall, Homelessness – the lack of any form of secure dwelling – remains a
more than 1.6 billion people are affected by some form of housing widespread problem worldwide, though precise figures on its prevalence
inadequacy24 – a figure that includes, in addition to those living in are not available. Only 78 countries globally have official data on
informal settlements, another half a billion contending with a range of homelessness, making consistent estimates of its prevalence globally
housing deprivations. Globally, as of 2024 2.2 billion people still lacked more or less impossible.28 Moreover, definitions overlap with IDPs,
safely managed drinking water services, 3.4 billion were without safely evictees and people living in inadequate housing or informal settlements.
managed sanitation services and 1.7 billion did not have basic hygiene Drawing on data from the Institute of Global Homelessness, however,
services at home.25 As housing without these services is considered the homelessness rates for some large countries indicate the scale of
inadequate, given its knock-on effects on health and life prospects, at the problem: 21 per 10,000 for China, 13 per 10,000 for India, 20
least 3.4 billion people are affected by some form of housing inadequacy per 10,000 for the United States (US) and 11 per 10,000 for Brazil.29
across the urban-rural continuum. Based on a harmonized definition and method, the OECD estimated

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WORLD CITIES REPORT 2026

that in 2024, over 2 million people in the OECD countries alone

The shortage of housing is a major
were experiencing homelessness each year.30 However, conventional
driver of the global affordability crisis
methodologies often undercount certain groups, particularly women,
children and young people, Indigenous Peoples, older persons, ethnic
minorities and migrants.31 1.1.2 The affordability challenge: rethinking housing
delivery
In other ways, too, systemic and historically rooted inequalities The last three decades have witnessed an emerging housing affordability
shape access to adequate housing across characteristics such as age, crisis, with housing-related expenses rising much faster than income.35
gender, ethnicity, economic status, disability, sexual orientation and Housing affordability encompasses not only the direct cost of a home,
migration status. Women and gender‑diverse persons continue to but also the expenses associated with services, infrastructure, insurance
face constraints arising from patriarchal property systems. and taxes. Households that spend more than 30 per cent of their income
on housing are typically considered to be cost-burdened, a situation
For example, a World Bank assessment in Sub‑Saharan Africa found that UN-Habitat data shows applies to 44 per cent of tenant households
that fewer than 13 per cent of women aged 20–49 report sole worldwide.36 The regions with the highest proportions of households
ownership of land, compared with 36 per cent of men.32 Although spending more than 30 per cent of their income on rent are Sub‑Saharan
joint ownership narrows the gap, disparities remain substantial, with Africa (55 per cent), Europe and Northern America (50 per cent), and Latin
long‑term implications for intergenerational wellbeing and economic America and the Caribbean (48 per cent).
efficiency. Intersecting vulnerabilities also emerge along lines of
ethnicity, disability and migration status. In Latin America, 2010 data Between 2010 and 2023, the cost of buying a house rose globally from 9.3
show that Indigenous populations experience significantly higher to 11.2 times the average annual income. The regions with the highest price
rates of inadequate access to sanitation and drinking water than to income ratios in 2023 are Central and Southern Asia (16.8) and Eastern
non‑Indigenous, non‑Afro‑descendent groups.33 and South-Eastern Asia (17.5).37 These ratios indicate that housing is largely
unaffordable for most urban residents and suggest that homes in Asian
Migrants face similar disadvantages: in the EU, homeownership cities are generally less affordable than those in many developed countries.
among nationals (73.6 per cent) is more than three times higher Hong Kong has frequently ranked as the least affordable housing market in
than among non‑EU citizens (22.9 per cent) and almost double that the world.38 Chapter 3 analyzes the affordability crisis and discusses the
of citizens from other EU countries (37.0 per cent). Overcrowding contextual factors including the effects of the burden of affordability. The
is likewise more prevalent among non‑EU citizens (33 per cent) than shortage of housing is a major driver of the global affordability crisis, as
among EU citizens (19.8 per cent) or nationals (13.7 per cent).34 demand continues to outpace supply. As shown in Figure 1.2, the deficit
is most acute in Sub‑Saharan Africa, where at least 100 million additional
housing units are needed to meet current and future household needs.

Figure 1.3: Housing shortage by region (units in millions)

2010 2015 2020 2023

140

120

100

80

60

40

20

0
Oceania Sub- Western Asia Latin America Central and Eastern and Europe Australia
(excluding Saharan and Northern and the Southern South-Eastern and Northern and New
Australia and Africa Africa Caribbean Asia Asia America Zealand
New Zealand)

Source: UN-Habitat, 2026a

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 The Global Housing Crisis

the trauma and impact of forced eviction and displacement, and how
Simply increasing the number those that are displaced can be best supported through integrated
of houses, without addressing approaches that promote the progressive realization of the right to
underlying issues such as poverty adequate housing.
and unemployment, will not result
in truly affordable housing 1.1.4 Leveraging the potential of informality
for housing provision
Globally, the estimated shortfall is more than 268.8 million housing units, In many settings, a significant portion of housing is produced informally
with the greatest concentration in developing regions.39 This estimate through processes that are unplanned, unregulated and often in violation
may still understate the true scale of need: the World Bank previously of planning or building standards. A common pattern in such contexts
identified a housing deficit of 268 million units across 64 emerging is that households first occupy land, then construct their own homes,
countries, representing 1.26 billion people, suggesting that global figures and only afterward engage with community groups or government
are likely higher.40 authorities to secure infrastructure and planning support. These issues
are explored in greater detail in Chapter 5.
Addressing the housing affordability crisis requires examining the
entire housing delivery system: how housing is financed, constructed Although global data are unavailable, estimates from Mexico, Nepal
and maintained, as well as the factors that shape supply, including and Ghana indicate that between 60 and 90 per cent of housing is built
construction costs, regulatory frameworks and land availability. It also incrementally and through self‑construction.43 Much of this activity takes
involves assessing demand-side pressures such as households’ ability place in informal settlements, which in many countries are the norm
to pay, the rapid rise in housing costs relative to income, and broader rather than the exception: in Burkina Faso, Mali and Chad, more than
socioeconomic challenges like poverty, inequality, unemployment, low 80 per cent of the urban population lives in such settlements.44 Because
wages and gaps in social protection policies. This helps identify the key formal housing is unaffordable and access to formal finance is limited,
bottlenecks that impede the supply of affordable housing and informs residents who build incrementally often rely on informal financing
the most effective strategies for reforming housing systems to improve sources, including relatives, moneylenders and community‑based
affordability for all groups. Simply increasing the number of houses, housing funds.45
without addressing underlying issues such as poverty and unemployment,
will not result in truly affordable housing even if construction costs are Informally built housing and neighbourhoods
reduced. This underscores the need for a multipronged approach that are constantly undergoing self‑initiated
combines both demand‑ and supply‑side measures. maintenance, repairs and upgrading

1.1.3 Mitigating displacement and its impacts The challenge is that formal urban policy and practice in most cities
Displacement is a broad term that captures the multitude of ways have struggled to integrate and capitalize on the significant potential of
people can be affected by conflicts, disasters, eviction, slum clearance, informal housing processes. These informal systems need to be harnessed
and gentrification, among others. Besides leading to loss of livelihood, because they directly produce significant quantities of housing, in
assets, health and well-being, conflict and disaster-related displacement the process generating livelihoods that support housing investment.
pose a challenge to housing. First, as the majority of those displaced Compared to formal housing systems, they also offer advantages such as
through conflicts and disasters do not live in camps,41 those displaced greater flexibility, lower costs, stronger community networks and quicker
add pressure on surrounding housing markets and settle land informally responses to shocks.46 Indonesia’s Kampung Improvement Programme,
in places with an insufficient supply of formal housing. In cities where for example, built on the strengths of informality by providing serviced
capacity and resources are already strained, displacement compounds plots on which low‑income households could construct their own homes
local housing issues, which can lead to tension and hostility. Second, through self‑help methods. At the same time, it is essential to recognize
there is the need for reconstruction of housing in conflict- or disaster- the limits of what communities can achieve alone: in particular, the need
affected places for people to return if they so desire. for investment in formal trunk infrastructure and key city‑level services.
It is equally important to analyse who benefits from informality in each
Displacement has often been addressed primarily from a humanitarian context and the negative impacts informal practices can also produce,
standpoint. Over the past decade, however, there has been growing including environmental pollution, poorly built housing, political
demand for solutions that move beyond temporary or emergency clientelism and land‑related criminal networks.
responses toward more permanent housing options integrated into urban
policy. At the same time, there is increasing recognition of the limitations Informally built housing and neighbourhoods are constantly undergoing
of standardized shelter models: these may meet immediate physical self‑initiated maintenance, repairs and upgrading, even though formal
needs, but fail to provide the broader socio‑economic support such as land and housing policies are often poorly aligned with their needs and
access to services, amenities and social welfare programmes that helps realities. Informal housing is also widespread in high‑income countries,
displaced people fully integrate into society. A lack of cultural adequacy where backyard units, basement apartments, rooftop dwellings,
has also been repeatedly identified as a key recurring issue for emergency accessory dwelling units and unauthorized subdivisions have become an
housing.42 Chapter 4 explores measures that have been taken to address increasingly important source of low‑cost housing.47

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WORLD CITIES REPORT 2026

A local artist installs a newly painted roof in Medellín, Colombia © UN-Habitat/Julius Mwelu

A comprehensive response to the housing crisis must include The Intergovernmental Panel on Climate Change (IPCC) warns that risks
recognition of informal land tenure and planning regulations that support to cities, settlements and critical infrastructure will continue to intensify
incremental, in situ upgrading. Informally built homes frequently double without accelerated adaptation, particularly in rapidly expanding and
as places of work, making housing a productive asset that urban economic vulnerable urban areas.53
development strategies should consider.48 However, in many cities, local
policies and building codes continue to penalize informality, and much The building and construction sector is a major driver of global
construction takes place under insecure land tenure conditions.49 This greenhouse gas emissions, accounting for at least 37 per cent of the
insecurity limits access to finance and undermines residents’ ability to total.54 Housing therefore holds significant potential for reducing
invest in and continually improve their homes. The key question, then, emissions. Yet adapting homes and infrastructure to a changing climate
is how policy frameworks can be adapted to harness the strengths of presents profound challenges. Climate‑related investments such as
informal practices while preventing the emergence of slum conditions. flood protection have too often prioritized affluent neighbourhoods,
leaving vulnerable communities and informal settlements underserved
1.1.5 Promoting sustainable housing through climate and at greater risk, thereby deepening existing inequalities.55 Emerging
resilience low‑carbon building technologies may not always be cost‑effective,
Climate change is reshaping cities in profound ways, driving more and their widespread adoption carries the risk of widening housing
frequent and severe extreme weather events such as floods, heatwaves, disparities. Balancing the higher upfront costs of green design against
wildfires, powerful storms, droughts and other climate shocks.50 long‑term savings in maintenance, operation and health outcomes
Achieving climate‑resilient housing is one of the world’s most urgent remains a key policy challenge.56 In this context, investment in housing
challenges. Because housing occupies the largest share of built-up urban represents a critical opportunity to advance climate justice and ensure
land, homes are on the frontline of these impacts.51 In 2024 alone, that the benefits of climate action are shared equitably.57
natural catastrophes generated an estimated US$318 billion in global
economic losses – most of it uninsured – and technical assessments Building climate‑resilient housing requires reconciling two urgent
indicate that disaster‑related losses are following a long‑term upward and sometimes competing imperatives: expanding access to adequate
trajectory. By 2040, climate hazards could result in the loss of around housing at scale, and promoting compact, connected forms of urban
167 million homes.52 development.58 Variations in housing density, and in how “compact”

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 The Global Housing Crisis

neighbourhoods are planned, can lead to substantial differences in

greenhouse gas emissions.59 Yet from 1990 to 2014, average urban When housing is built without
densities declined, driving urban expansion into natural carbon sinks and walkable public spaces, safe street
contributing to higher emissions from longer commutes.60 Conversely, networks or mass public transport
policies designed to protect green areas, such as greenbelts or restrictions options, residents are pushed into
on development in flood‑prone zones, can unintentionally worsen car‑dependent patterns of living
housing affordability by constraining land supply.61 The central challenge
is whether cities can strike a delicate balance between developing new Creating liveable cities requires authorities to move beyond convening
peripheral land to meet housing needs and containing urban expansion planning processes and instead actively engage communities in
to prevent further environmental degradation. decision‑making, fostering meaningful collaboration with community
organizations, the private sector, neighbourhood associations and
Addressing the challenge of sustainable housing is not simply a question individual residents.62 Such engagement ensures that planning tools
of how many more homes are needed, but also of where and how they reflect the perspectives and needs of diverse groups, particularly
are built. Even without closing the existing housing gap, adapting today’s those traditionally marginalized from decision-making processes, such
housing stock to withstand the accelerating impacts of the climate crisis as women, older persons and migrants. Achieving full integration of
is an immense undertaking. This is particularly the case in informal housing within the city also requires sustained attention to management,
settlements, where strengthening resilience is both urgent and essential, maintenance and stewardship so that the social function of housing,
yet must compete with other pressing needs and priorities. Recognizing its long‑term value and its durability can be fully realized. Moreover,
that no single approach fits all contexts, Chapter 6 examines the policies inclusive housing systems must adapt to evolving demographic trends,
and interventions needed to scale up the decarbonization of housing in including ageing populations and increasingly multicultural cities.
ways that are cost‑effective and do not undermine affordability. Chapter 7 explores how housing can be effectively integrated into the
wider urban fabric to create resilient and liveable neighbourhoods.
1.1.6 The importance of ensuring liveable
neighbourhoods
Cities around the world continue to face significant challenges in
integrating housing into the broader urban fabric in ways that ensure
all residents have access to liveable, well‑connected neighbourhoods.
Housing is far more than a physical structure: it encompasses a
multidimensional package of goods and services, including access to
infrastructure, public space, mobility, livelihood opportunities and social
networks. Yet, in many contexts, housing delivery has been approached
as a series of isolated construction projects focused primarily on the
provision of shelter. Insufficient attention to the neighbourhood,
environmental, cultural and locational dimensions of housing has often
resulted in developments that are physically disconnected from essential
services, employment and amenities. This segregation reduces access to
opportunities and reinforces spatial inequality.

Urban planning and governance are therefore critical to creating liveable

neighbourhoods by ensuring that housing is well located, adequately
serviced and embedded within a coherent urban structure. However, in
many settings, planning and governance frameworks lack the capacity,
tools or institutional alignment required to fulfil this role effectively.
When housing is built without walkable public spaces, safe street
networks or mass public transport options, residents are pushed into
car‑dependent patterns of living, with cascading implications for health,
safety, affordability and climate resilience. In the most extreme cases,
isolated housing projects may remain vacant or underutilized because
they fail to meet the practical needs of residents. Ensuring a balanced
mix of housing, services and amenities can play a central role not only
in improving neighbourhood liveability, but also in easing affordability by Newly constructed residential housing units in Rabat, Morocco
optimizing land supply and reducing infrastructure costs. © UN-Habitat /Jacob Ojwang

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WORLD CITIES REPORT 2026

1.2 Drivers of the Global Housing Crisis with an average annual urban growth of 1.7 per cent in less developed
regions between 2000 and 2025 compared to 0.3 per cent among
The escalating scale of the global housing crisis must not obscure the more developed regions during the same period.63
deeper, long‑term structural forces that have shaped today’s challenges.
While the specific barriers to achieving adequate housing vary by country Between now and 2050, more than 1.7 billion additional people
and context, the focus of this section is on the structural, long‑term are expected to reside in urban areas, a total of 6.5 billion.64 The
drivers that underpin the global housing crisis. These forces shape implication of this is that future urban growth will take place mainly
housing outcomes across all regions and interact with policy failures, in the developing regions of Africa and Asia, where the planning
institutional weaknesses and regulatory gaps that compound housing systems and public institutions are not currently well-equipped to
deficits (Figure 1.4). Without addressing these drivers comprehensively supply housing at the rate which is needed.
and systematically, the global housing crisis will continue to deepen,
placing even greater strain on cities and human settlements worldwide. Unplanned urbanization is a key driver for the growth of informal
settlements. Without making well-serviced land available at affordable
1.2.1 Urbanization: increasing urban population and prices, conditions of housing inadequacy are more likely to persist.
rising land prices With the increasing concentration of people living in cities demand
A key driver for the housing crisis is the inability of housing production is outstripping supply, creating land scarcity and price escalation. In
to keep pace with rising global population, especially in urban areas. developed countries, rising land prices may account for as much as
Rapid urbanization exerts tremendous pressure on housing and 80 per cent of the increase in housing prices that has taken place
land markets, which is reflected in housing shortages, overcrowded since the 1950s.65 In African countries, meanwhile, land prices have
habitation, and the large number of people living in slums and informal been found to be rising much faster than the general price of goods
settlements. Developing countries have the fastest rate of urbanization, and services, particularly for urban areas.66

Figure 1.4: The key drivers of the housing crisis

Demographic drivers Economic drivers

Increasing population Increasing housing demand is fuelling
in need of housing potential returns on investment

Demographic
shifts Housing
Intergenerational Housing crisis Financialization is driving demand financialization
housing inequality Context-specific policy for speculative housing assets
gaps and inadequate
level of responses to
address key drivers
Urbanization is driving wealth Inequality and
generation and more floor financialization are
area per person reinforcing each other
Urbanization

Urbanization is leading Housing is a key driver

to higher land prices of increasing inequality

Climate change and conflict are Housing

destroying homes while intensifying Accumulation of housing equity inequality
demand in urban housing markets is driving the housing crisis

Climate change
and conflict are
accelerating
urbanization

Climate Conflict Contextual drivers

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 The Global Housing Crisis

1.2.2 Increasing housing consumption of informal settlements is itself a consequence of these structural
Urbanization is not only driving the demand for housing from rural to inequalities. Evidence from the US shows that an increase in inequality
urban areas, but also generating prosperity.67 While increased affluence is associated with a rise in the number of severely rent-burdened low-
in cities is a mark of societal progress, it is leading to increased housing income households.77 This trend is replicated in Europe, where income
consumption that is straining supply. The trend from the available data inequality is associated with decreased affordability, inferior housing
shows that the amount of housing floor area per person has been rising quality and overcrowding for low-income groups.78
for decades. In the US, the average house size increased from 154 m2
in 1973 to 250 m2 in 2015, while at the same time average household The housing crisis does not simply result from inequality, however:
size dropped from 3.1 to 2.5 people. This means that the average area housing has itself become a key driver of inequality, too. Housing generates
per capita almost doubled from 51 m2 in 1973 to 98 m2 in 2015.68 A disparities through at least two mechanisms. First, owner‑occupiers can
similar picture emerges for China. In 1956, the average urban inhabitant leverage their homes as collateral to access credit and build additional
in China only had 5.7 m2 of residential floor area, but by 2020 this figure wealth. Second, well‑located housing provides long‑term human capital
has increased more than six-fold to 38.6 m2 per person.69 advantages such as access to good schools, employment, transport and
services that compound over generations.79 Consequently, housing
Unless significant changes are made to the types of available housing, inequalities cascade into broader inequalities in health, education and
housing consumption per capita is expected to accelerate with an economic opportunity. Whereas occupation once played a dominant role
overall trend towards smaller and single-person households. All this in shaping life outcomes, homeownership is increasingly emerging as a
extra residential space costs money to be constructed, maintained and key determinant of welfare and social mobility.80
climatized, not only increasing the unaffordability of individual housing
units, but also contributing to increased greenhouse gas emissions. Even A major contributor to this dynamic is the intergenerational transmission
in contexts where real construction costs have not risen significantly, of housing wealth. Financial assistance from parents or inherited
the increase in housing size means costs have still gone up. In the US, property significantly enhances young adults’ access to homeownership,
the cost of housing per square foot (measured in constant 2010 US$) making wealth inequality persist over time. This has produced widening
remained almost unchanged between 1980 ($83) and 2015 ($85).70 Yet generational divides, as older homeowners have benefited from decades
housing prices have steadily increased in the US in recent years, with of rising housing values, while younger cohorts face escalating prices
inflation-adjusted housing prices around 65 per cent higher in 2023 and far more restricted access to ownership.81 Without addressing these
compared to 2000.71 underlying inequities, particularly on the demand side, the housing crisis
is likely to deepen and extend across future generations.82
In some contexts, changes in housing consumption have been
compounded by high or increasing construction costs. Housing
construction costs per square meter are lower in China and India, where Financial assistance
significant economies of scale exist, than in Chad, Zambia or Ghana, from parents or inherited
where construction industries and supply chains are less developed.72 property significantly
In African cities, construction costs range between 35 and 71 per cent enhances young adults’
of the total cost of housing.73 The reliance on imported materials is an access to homeownership,
important driver of higher construction costs, especially for landlocked making wealth inequality
countries such as Rwanda, where transport accounts for around 40 per persist over time
cent of the cost of building materials in the capital Kigali.74 It is imperative
that developing countries promote local production of building materials Persistent disparities in access to adequate housing also drive major
through strategies such as import substitution, as is being undertaken by health inequalities. Poor ventilation, inadequate thermal protection,
Ethiopia, Rwanda and now Malawi.75 pest infestation, exposure to toxins and substandard infrastructure all
negatively affect physical well‑being. Overcrowding heightens the risk
1.2.3 Increasing inequality of communicable diseases, including tuberculosis, while the COVID‑19
The contradiction between growing urban prosperity and the persistence pandemic underscored the heightened vulnerability of residents of
of a severe housing crisis reflects the unequal distribution of housing slums and informal settlements, where inadequate housing facilitated
opportunities. While global inequality has remained high for decades, rapid disease transmission. Structural deficiencies in housing also
income and wealth inequality within many countries have also increased, increase risks of injury due to flooding, collapse and unsafe electrical
intensifying housing deprivation. systems. These challenges disproportionately affect vulnerable groups,
particularly children living in informal settlements. UNICEF data from
Rising property values disproportionately benefit those who already 70 countries show that in half of them, urban children in the poorest
own homes, widening the wealth gap, while growing employment quintile are at least twice as likely to die before the age of five as those
insecurity weakens the economic foundation required for households in the richest quintile.83 Limited access to preventive and curative health
to access stable housing. At the same time, policy frameworks in many services, such as immunization, further compounds these risks.
places have reduced support for economically vulnerable groups, often
favouring those already securely housed.76 The widespread prevalence

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WORLD CITIES REPORT 2026

High-rise apartments in Hong Kong, China © Shutterstock

1.2.4 Increasing financialization of housing Speculative and poorly regulated credit flows have inflated housing
A major driver of the global housing crisis is the growing financialization prices in unsustainable ways, often ending in market corrections once
of housing.84 Housing is increasingly treated as a financial asset, price bubbles burst. In contrast, conventional housing finance systems
overshadowing its essential role in providing safe, secure and dignified remain inaccessible for large segments of urban households, especially
living spaces for people. This shift has allowed homes and mortgages in developing countries. The inability of formal institutions to address
to be packaged into financial products and traded as investment the housing needs of most of the population should be a central concern
commodities.85 As the Special Rapporteur on the right to adequate housing for policymakers. In response, alternative financing approaches have
has noted, this trend has “transformed housing from a fundamental emerged, including microfinance, community-based mechanisms,
social necessity into an investment tool”, reducing both affordability and blended finance and cooperative credit systems. These alternatives are
accessibility.86 In a number of countries, large institutional investors examined in more detail in Chapter 8.
now own a significant share of the housing stock, contributing to rising
rents, speculative behaviour and increased pressure on low- and middle- Current affordability challenges stem not only from supply constraints but
income households. also from demand-side pressures linked to speculation and investment
practices. In many cities, new housing is increasingly designed for higher
The financialization of housing accelerated during the 1980s as housing income groups or investors, leading to substantial numbers of vacant
markets were liberalized.87 Access to mortgage credit expanded and or under - occupied units even as shortages persist for lower income
restrictions on domestic and foreign investment in housing were households. In some countries, these units represent 10 to 15 per cent
eased.88 Banking deregulation increased the availability of credit, of the total housing stock.91 This mismatch wastes valuable resources
allowing mortgage lending to grow faster than the construction of new such as land, construction materials, infrastructure and services, while
homes.89 This created feedback loops in which easier access to credit failing to meet urgent housing needs.
pushed up prices more quickly than supply could respond. In some cases,
well intentioned housing subsidies also contributed to price increases by
raising purchasing power without expanding supply. Declining interest Speculative and poorly regulated credit flows have
rates from the 1980s further encouraged investment in real estate, inflated housing prices in unsustainable ways
intensifying demand and price growth.90

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 The Global Housing Crisis

1.2.5 Rising impact of climate change and conflicts In some African countries, obtaining a construction permit can take
Climate change and ongoing conflicts are often treated as external more than 200 days, making land both scarce and costly.96 These
pressures rather than core drivers of the housing crisis.92 Yet both have governance gaps are compounded by widespread insecurity of land
become central forces reshaping where and how people live. As the tenure – globally, an estimated 1.4 billion people lack legally recognized
UN Special Rapporteur on the right to adequate housing again notes, documentation of their land rights97 – as well as the absence of clear
“the climate crisis is also a housing crisis.” Climate change contributes national housing policies or weak links between national and local
directly to housing insecurity by driving displacement, exacerbating priorities. Such fragmentation produces inconsistent regulations,
rural-to-urban migration, and accelerating unplanned urbanization. The conflicting objectives and incoherent housing systems.
rising cost of adapting existing housing to withstand more frequent and
severe climate shocks is placing additional pressure on households and Regulatory and financial incentives tend to favour high-income
public budgets alike. Recognizing these overlaps, it is increasingly clear housing at the expense of affordable options. Very often, the market
that housing and climate policy must be addressed in a coordinated and prioritizes luxury or investment-oriented developments even where
mutually reinforcing manner.93 demand from low- and middle-income households is far greater. This
mismatch contributes to rising vacancies and under-occupied units,
Armed conflict is also a major source of housing loss and displacement, as seen in some “ghost city” developments, while shortages for low-
with millions forced from their home every year to escape violence. income groups persist. Because these context-specific drivers vary
For IDPs and refugees, violations of the right to adequate housing are widely across places, addressing the housing crisis requires localized
among the most severe, encompassing loss of homes, land, livelihoods strategies tailored to institutional capacity, land governance conditions
and security. While conflicts may appear localized, their effects extend and the specific needs of different communities.
far beyond conflict zones. Large population movements into cities
elsewhere place additional strain on already overstretched housing
markets, contributing to higher demand, rising rents and increased 1.3 Emerging Housing Trends
informal settlement growth.
This section highlights several key housing trends that have emerged
Armed conflict is also a major source of housing in response to the global housing crisis and sets the foundation for the
loss and displacement, with millions forced from discussions in the chapters that follow. Although each trend requires
their home every year its own set of policy responses, they share a common shift away from
rigid, institutionalized and one‑size‑fits‑all approaches. Instead, they
Of the countries that experienced a rise in the proportion of their urban emphasize more inclusive models that integrate people into society
population living in slums and informal settlements between 2000 and expand the range of housing options available to different groups.
and 2020, more than half were either in conflict or transitioning out
of it, highlighting the long-term impacts of violence on urban housing 1.3.1 Trends in housing demography
outcomes.94 Chapters 4 and 6 examine these drivers in greater detail,
showing how displacement and climate risks intersect with housing Responding to an ageing population
systems and outlining practical strategies to strengthen resilience, A major demographic shift that will intensify over the coming decades
expand protection and reduce vulnerability. is the rapid growth of the older population. People aged 65 and above
represent the fastest-growing age group globally, projected to almost
1.2.7 The institutional and regulatory environment double between 2024 and 2054, from 17 to 33 per cent of the
Local and context-specific factors, especially institutional and regulatory population.98 This trend makes it increasingly important to ensure that
frameworks, also play a critical role in shaping housing outcomes. Across housing and supporting infrastructure are suitable for this demographic
many settings, a recurring pattern of weak housing and land governance trend. As older people typically spend more time at home, the effects
constrains supply and undermines affordability. Restrictive land-use of inadequate housing will be felt even more acutely.
rules, outdated building regulations and zoning practices such as “Not
in My Backyard” (NIMBY) opposition often limit where and what types In response, many countries are adapting housing to support
of housing can be built, as is in the case of San Francisco (US).95 When “ageing in place”, enabling older persons to live independently in
these regulations are unrealistically burdensome or poorly designed, their communities for as long as possible. This approach includes
they make housing more expensive and disproportionately exclude low- modifying existing homes and ensuring access to appropriate services
income households. and assistance.99 Ageing in place helps prevent or delay disruptive
transitions to care facilities, supports autonomy and reduces the risk
Efficient and predictable regulatory systems, by contrast, can accelerate of social isolation.100 It also allows older adults to choose whether to
the supply of well-located and affordable housing. However, in many remain in their current home, relocate to housing designed for older
countries, complex approval processes, overlapping mandates and lengthy people, or live with family members.101
administrative procedures delay development and deter investment.

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WORLD CITIES REPORT 2026

Historically, multi-generational households were common, providing Traditionally, governments and non-governmental organizations have
social benefits such as shared caregiving and reduced loneliness among developed disability-specific housing that often isolates residents from
older persons. Although such arrangements have declined over the past their communities and clusters people with disabilities together. In
century, particularly in Western Europe and Northern America, they line with the United Nations Convention on the Rights of Persons with
remain widespread in many regions. In parts of Africa, for example, Disabilities, however, disability policy is increasingly shifting away from
more than half of older persons live in extended family households.102 As segregated and institutional models toward “individualized housing”
populations age and housing affordability pressures increase, for young approaches. These approaches give adults with disabilities genuine
and old alike, multi-generational living may become more prevalent again. choice over their living arrangements and enable them to reside in
ordinary community settings alongside people without disabilities.106
This shift away from formal institutions does not exclude collective
As populations age and housing affordability living models that may be particularly beneficial for some groups such as
pressures increase, for young and old alike, multi- people with autism or Asperger’s, especially when these arrangements
generational living may become more prevalent support independence while also encouraging social interaction and
engagement with the wider community.
Inclusive approaches to housing for people with disabilities
An estimated 1.3 billion people, or 16 per cent of the global population, To expand such choices, accessibility principles must be integrated into
live with significant disabilities.103 People with disabilities face major all housing construction. Accessibility adaptations range from low-cost
barriers to securing adequate housing, including limited options for measures like rails, ramps and entry systems, to major modifications
where and how they can live. Many people with disabilities remain in such as lifts or redesigned kitchens and bathrooms. Evidence shows
the parental home far longer than their peers, or they reside in shared that these adaptations are a cost-effective public investment: they help
accommodation with communal facilities and support services.104 Yet people avoid hospitalization, ease pressure on caregivers and foster
accessible housing tailored to their needs is essential for ensuring social inclusion.107 Yet major gaps remain. In the US, for example,
economic security, health, well‑being and independence.105 fewer than 4 per cent of homes can be considered fully accessible to
wheelchair users, with no-step doorways, single-floor living and hallways
of a sufficient width.108 Building public support for inclusive design will
require demonstrating that accessibility features benefit not only people
with disabilities, but also older adults, children and others who may face
mobility or access challenges at different stages of life.

Disability policy is increasingly shifting away

from segregated and institutional models toward
“individualized housing” approaches

Single-person households
As discussed earlier in this chapter, one major driver of the global
housing crisis is the growing amount of space consumed per person.
This trend stems from two opposing developments: homes are becoming
increasingly larger, while average household size continues to shrink.
The increase in single-person households is one dimension of this. The
proportion of the world’s population living alone has steadily risen from
23 per cent in 1985 to 28 per cent in 2018, with projections suggesting
that by 2050 more than one in three households could consist of a single
person.109 Although regional differences are substantial – ranging from
just 2.6 per cent single-person households in Cambodia to 38 per cent in
Switzerland – a study across 75 countries found that the rate of single-
person households was rising in 53 of them, amounting to more than
70 per cent of those surveyed.110 Responding to these demographic
shifts requires not only the construction of more smaller homes, but
also the development of housing that can adjust to evolving household
configurations. These adaptations are crucial not just for meeting the
needs of smaller households, but also for addressing other dimensions of
A young woman with a disability sits in a wheelchair and eats breakfast at home
© Shutterstock the broader housing crisis.

16
 The Global Housing Crisis

1.3.2 Trends in housing delivery Central to this approach is the use of shared land tenure that moves
The persistent and complex nature of the housing crisis, combined beyond individual or state ownership, enabling collective land and
with responses that are slow, small in scale and often still unaffordable, housing management and fostering urban and architectural design that
has led to growing interest in more flexible, temporary approaches to supports shared everyday spaces.116
housing delivery, occupation and management. This discussion focuses
on three adaptive housing solutions: infill housing, flexible housing and Community‑led housing has long been an important mode of housing
temporary housing. provision across many Asian countries. A well‑known example is
Thailand’s Baan Mankong programme, discussed in detail in Chapter
Trends towards more adaptive housing solutions 5, where scale has been achieved through partnerships between
In this context, infill housing is used as an umbrella term that encompasses government agencies and community-based organizations that make use
secondary and accessory dwelling units, tiny homes, resident‑initiated of land‑sharing arrangements. Another widespread form in Asia involves
extensions, the restoration of previously habitable units, the subdivision large-scale housing development by village committees located on urban
of larger homes, and the conversion of non-residential spaces such as peripheries. As cities expand and incorporate these urban villages,
offices into housing units. These forms of development generally help fill existing systems of shared or collective landownership have enabled
gaps in the housing market, particularly for smaller units and for specific the rapid creation of housing for people who are excluded from formal
population groups. Infill housing often operates in grey areas of existing housing markets.117
regulatory frameworks. For instance, secondary units built in backyards
are typically smaller and lighter structures, meaning they may face less In Europe and North America, community-led housing is gaining traction
stringent building codes, fewer requirements for environmental impact as a response to escalating housing unaffordability and the increasing
assessments, and no need to upgrade local infrastructure.111 In some financialization of residential real estate.118 Community land trusts,
jurisdictions, regulations have been amended to encourage infill, such for example, have become prominent for their model of separating
as by easing land-use restrictions.112 The city of Los Angeles (US), for land ownership from home ownership and applying resale restrictions
example, has adopted policies on accessory dwelling units that have to ensure long-term affordability, maintain community benefit, and
broadened where and how these units can be constructed.113 reduce displacement pressures.119 A notable trend in these regions is
the explicit use of community-led housing to intentionally create new
The housing built today must also be flexible enough to adapt to communities. Co‑housing developments, for instance, are designed
emerging and future needs. Flexibility is a key strategy in responding around shared facilities such as communal dining spaces, recreational
to the climate crisis, as housing designed for easy adaptation over time areas and gardens to encourage interaction and support the formation of
has a lower environmental footprint than carbon‑intensive renovations or diverse, multigenerational communities.120
demolition and reconstruction. Flexible housing can adjust to personal,
practical or technological changes, and seeks to empower residents
to make modifications both at the design phase and throughout the
building’s lifespan. This participatory approach strengthens residents’
sense of ownership and helps reinforce the idea of the housing unit as
a true home.114

Temporary housing refers to all forms of accommodation intended for

non‑permanent use. Broadly, it includes demountable structures such
as emergency shelters and temporary housing that repurposes existing
durable buildings, such as the short‑term conversion of offices into
living spaces.115 While emergency housing is typically deployed in crisis
situations, temporary housing plays an important role in addressing
homelessness, where transitional solutions are often required: for
instance, when a family is evicted and needs immediate, short‑term
accommodation.

Trends towards community-led housing

Housing policy is increasingly acknowledging community-led housing
as a viable alternative model. In this context, community-led housing
refers to a wide spectrum of housing approaches characterized by strong
community participation such as collaborative housing, co‑housing
and cooperative housing. These models typically incorporate elements
of self‑built housing, including greater resident control over the
Homes built under Baan Mankong, a low-cost housing program to resettle
development, management and long-term stewardship of homes, and communities living by canals in Sai Mai district of Bangkok, Thailand
they may also involve varying levels of support from local governments. © Rina Chandran/Thomson Reuters Foundation

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WORLD CITIES REPORT 2026

at scale, often serving as a lower‑carbon substitute for concrete and

Community-led housing is gaining traction as a steel, especially in low- and mid‑rise housing.131 These technologies are
response to escalating housing unaffordability and the increasingly recognized for their contributions to the SDGs.132
increasing financialization of residential real estate
Their carbon‑sequestering properties, biodegradability and low embodied
1.3.3 Trends in housing technology energy make them especially important for climate change mitigation.133
Technology has always played a role in the design, construction and In addition, the localized supply chains linked to these materials create
maintenance of housing. However, in recent decades, new and rapidly jobs and strengthen community resilience.
evolving housing technologies have begun to transform the sector,
driving down costs while reducing environmental impacts. Key trends Modern technological advances are also helping revive and enhance
include the growing adoption of modular and prefabricated construction traditional construction practices. For instance, innovations in producing
methods, renewed interest in Indigenous building technologies, and interlocking stabilized soil blocks have transformed a long‑standing
the rise of digital tools that support more efficient housing design, technique into a cost‑effective, scalable alternative to fired bricks. The
construction and management. ease of deploying this technology has led to wider use in displacement
and humanitarian settings.134 Both modular and vernacular approaches
Housing modularity and prefabrication emphasize design for disassembly and reuse – a strategy shown to reduce
In response to the housing crisis, modular and prefabricated construction embodied energy and embodied carbon by up to 81 per cent and 88 per
methods are being increasingly adopted because they reduce costs cent respectively.135 However, despite their benefits, bio‑based housing
through mass production, shorten construction timelines and enhance technologies still face obstacles, including inconsistent performance
quality control.121 These approaches involve manufacturing key standards and regulatory frameworks that have yet to catch up with
components – such as facades, roofs and structural elements – off-site material innovation.136
and then transporting them to the development site for final assembly.
Off‑site fabrication enables greater automation and more consistent
quality. Since traditional construction is highly labour‑intensive, faster
on‑site assembly can significantly reduce costs, particularly in countries Modular construction has
where labour is expensive.122 also proven to be a powerful
tool for climate adaptation
However, prefabricated modules remain cost‑effective only when the
distance between factory and construction site is manageable, meaning
they work best within strong, localized economies.123 In addition, Housing digitalization
modular construction requires substantial up‑front investment to The third pervasive trend is the increasing digitalization of housing
establish factories and acquire specialized machinery, potentially limiting production tools such as Building Information Modelling (BIM), now
the wider adoption of these technologies in developing countries. While widely used to optimize building design for low energy consumption.137
modular and prefabricated systems often use concrete – an expensive Digital technologies also play a crucial role in modular housing,
and carbon-intensive building material – several recent innovations aim to where they support the precise design and fabrication of complex
reduce both the cost and environmental footprint of construction. These connection components, and help reduce waste in prefabrication
include replacing steel reinforcement with textile-based alternatives124 and modular construction.138 However, the most transformative
and using locally sourced binders to lower the clinker-to-cement ratio.125 impact of digitalization is likely to be in housing management. Recent
advancements, including cloud and mobile computing, digital platforms
Modular components are also increasingly being integrated with and automated, data-driven decision-making, are reshaping how housing
3D‑printing technologies.126 Advances in digital design, hybrid building systems are administered.139
systems and prefabrication have made it possible to use other materials
as well, such as modular mass timber systems.127 Modular construction In some countries, land registries have been fully digitized, enabling
has also proven to be a powerful tool for climate adaptation. In the the entire legal process of land sale and transfer to take place online.
Netherlands, for example, prefabricated insulated wall and roof panels In Kenya, for example, the Boma Yangu platform uses a digital system
that can be attached directly to existing buildings have accelerated that allows residents to register, save and apply for housing. Digitized
renovation processes and minimized disruption for residents.128 monitoring of the housing sector can also strengthen decision‑making,
improving transparency and fairness in the allocation of below‑market
Innovative application of traditional technologies housing and housing subsidies.140
The second trend in housing technology involves a growing appreciation
and widespread use of Indigenous, vernacular and traditional Technology is also advancing the development of early warning systems,
construction methods – particularly for their potential to reduce costs which are increasingly important for housing resilience. Early warning
and environmental impact.129 These approaches rely heavily on bio‑based tools for earthquakes and climate-related disasters are now used to
materials such as adobe, rammed earth, clay masonry, sod blocks, thatch predict and monitor the timing and severity of such events, helping
and bamboo.130 Timber remains the most widely used bio‑based material residents protect their homes, secure their belongings and save lives.

18
 The Global Housing Crisis

Artificial intelligence is also being applied to monitor the financial health Widespread investment in housing in developing countries was often
of housing markets, providing signals that can help prevent instability. rejected as a meaningful development strategy. In Latin America and
Despite these benefits, the use of digital technologies raises concerns the Caribbean, despite housing deficits, public investments are below
related to privacy, transparency, openness and the potential for increased 1 per cent of GDP in several countries (Figure 1.5).145 Likewise
speculation in housing markets.141 As digital systems make global public expenditure is also low in developed regions. In EU countries,
finance more interconnected, strong regulatory frameworks are needed for instance, government expenditure on “housing and community
to ensure that digital housing information is not misused for financial amenities” as a share of GDP is about 1.2 per cent.146
gain.142
Yet in practice, the housing sector makes a substantial economic
contribution. The construction sector is among the largest industries
1.4 Housing and the Economy worldwide, accounting for approximately 13 per cent of the global GDP,
and providing employment to an estimated 7.7 per cent of working
Housing plays a transformative role in shaping national economic population,147 which represents around 287 million people.148 In the
outcomes. However, the economic importance of housing has perhaps US, housing has consistently accounted for 15–18 per cent of GDP.149
not been sufficiently recognized, with policymakers viewing it as A study covering 11 emerging economies estimates that the combined
“essentially a social sector deserving minimal attention and advocacy as contribution of housing investment and housing services ranges from
an instrument for economic development”.143 6.9 to 18.5 per cent of GDP, with an average of 13.1 per cent.150
Analysis of South Africa, Rwanda, Kenya and Nigeria further shows that
Housing was historically viewed as a “non-productive” investment, having the gross value added generated by residential construction and rental
a high capital-output ratio compared to other forms of investment. It activities exceeds that of many other sectors.151
was a good or service which called for substantial input but yielded
less output, yet competing with other sectors for capital, labour and However, although housing makes a substantial contribution to national
materials. It was, and often still is, considered as a social expenditure output in many emerging markets and developing economies, its true
contributing only to consumption, thus attracting labels like “resource- impact is often underrepresented in official statistics.
absorber”, “consumer good” and “social overhead”.144

Figure 1.5: Public investment in housing in selected countries in the Latin America and the Caribbean region

3.0 35

30
2.5

% Proportion of investment allocated to housing

% Public housing investment as share of GDP

25
2.0

20
1.5

15

1.0
10

0.5
5

0.0 0
Argentina Brazil Chile Colombia Costa Ecuador El Mexico Panama Peru Dominican Uruguay
Rica Salvador Republic

Public housing investment as share of GDP (%) Proportion of investment allocated to housing (%)

Source: CAF-Development Bank of Latin America and the Caribbean, & Lincoln Institute of Land Policy, 2024.

19
WORLD CITIES REPORT 2026

This is because the large size of the informal sector leads to the The economic gains generated by housing investment vary widely
undercounting of capital and labour invested in self-built housing.152 depending on the type of investment, the structure and size of the
Informal construction, which may account for up to 80 per cent of economy, the scale of construction activity, and a country’s level of
residential building activity in developing countries, is frequently development. Low‑cost housing tends to create more employment than
undervalued or not fully recorded.153 luxury or high‑end housing because it relies heavily on locally produced
materials and labour‑intensive construction methods rather than
In many African countries, the economic value generated by informal imported materials, advanced technologies and specialized labour.163
housing is likely greater than that produced by the formal sector. It Although the use of local building materials can generate substantial
also consistently delivers more housing units.154 Yet housing services backward linkages, which support domestic manufacturing and raw
provided through informal arrangements are commonly overlooked material industries, many developing countries remain heavily reliant
or underestimated. This reflects a broader challenge in capturing the on imports. In Africa, imports account for an estimated 60 per cent of
economic significance of informality in GDP measurements, with construction materials, a level that is difficult to sustain in economies
important implications for national economic indicators.155 facing significant debt pressures.164

1.4.1 Economic linkages of the housing sector 1.4.2 Housing sector as a generator of employment
The economic significance of the housing sector is anchored in its The housing sector has a strong capacity for job creation. It is both a
extensive backward and forward linkages across the wider economy. major employer and a critical source of income, generating jobs directly
Through these linkages, the sector’s demand for key inputs and through construction activity and indirectly through a wide range of
services is closely connected to its broader role in meeting societal related industries. Direct employment in housing construction engages
needs, stimulating economic activity and shaping patterns of urban diverse trades and occupations, and provides an important pathway for
development.156 These interdependencies mean the economic impact of workers to acquire and upgrade skills – often through work‑based or
housing investment is extended well beyond the initial outlay.157 informal learning – creating opportunities for economic mobility.

Globally, the construction sector employs over 280 million people.165 A

Informal construction, substantial proportion of these jobs are linked to housing construction.
which may account for In the US, for example, as of June 2025, an estimated 3.3 million of the
up to 80 per cent of 8.3 million people employed in construction were engaged in residential
residential building activity building.166 In India, the construction sector directly employs 16 per
in developing countries, is cent of the national labour force, with housing alone accounting for
frequently undervalued 58 per cent of all construction‑related employment.167

The economic effects of housing manifest through three channels: direct Informal employment dominates the construction sector across
impacts, arising from investment in residential construction and the developing regions. As illustrated in Figure 1.6, rates of informality are
employment generated within the sector; indirect impacts, transmitted highest in Africa, followed by Asia and Latin America and the Caribbean.
through the supply chains that provide materials, services and In all regions, informal employment in construction exceeds overall
intermediate inputs; and induced impacts, arising from the re‑spending informality levels. In Sub‑Saharan Africa, the informal economy accounts
of income generated by direct and indirect activities. Evidence from for between 50 and 80 per cent of GDP.168 This dominance is dual‑edged:
South Asia illustrates the magnitude of these effects, where US$1 spent while it provides essential “survivalist” economic opportunities, informal
in the housing sector can generate up to US$5 in income.158 employment is often precarious and low‑paid.169 Nonetheless, it plays an
indispensable role in housing delivery, as examined in Chapter 5. High
Although internationally comparable data remains limited, available levels of informality also have implications for access to housing finance.
studies underscore the substantial contribution of the housing sector to The prevalence of daily‑wage labourers and the lack of documented
national economies and employment creation. Cross‑country research or stable incomes make it difficult for workers to qualify for formal
covering nine emerging market economies indicates that US$1 million housing loans, as mortgage providers and lending institutions often avoid
in construction output can create between 43 and 182 jobs through lending to low‑income informal workers. This issue is further explored
direct and indirect effects.159 Country‑specific evidence aligns with in Chapter 8.
these findings. In India, an additional Rs. 100,000 (1 lakh) in demand
for residential construction generates an estimated 2.69 new jobs (2.61
informal and 0.04 formal), rising to 4.06 jobs (3.95 informal and 0.11
formal) when induced effects are included.160 In the US, construction The housing sector
of a typical single‑family home is estimated to support 2.9 jobs, while an has a strong capacity
average rental apartment generates 1.25 jobs.161 Similarly, in England for job creation
and Wales (United Kingdom), the house building industry supports an
average of 3.4 jobs per dwelling constructed.162

20
 0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
Lao PDR (2022) Sudan (2022)
Myanmar (2020) Guinea-Bissau (2022)
India (2024) Uganda (2021)

Source: Data from ILOSTAT

Cambodia (2019) Comoros (2021)
Pakistan (2021) Chad (2018)
Nepal (2017) Mauritania (2019)

Bangladesh (2023) Rwanda (2024)

Gambia (2023)
Indonesia (2023)
Burkina Faso (2022)
Timor-Leste (2021)

Asia
Benin (2022)
Viet Nam (2023)
Burundi (2014)
Afghanistan (2021)
Tanzania (2020)
Sri Lanka (2022)
Madagascar (2022)
Thailand (2024)
Mali (2022)
Maldives (2019)
Senegal (2024)
Mongolia (2023)
Togo (2022)
Brunei Darussalam (2023) Lesotho (2024)
Figure 1.6: Informal employment rate in developing regions

Turkey (2024) Kenya (2019)

Sierra Leone (2018)
Africa

Somalia (2019)
Egypt (2023)
Guatemala (2023) Zambia (2023)
Bolivia (2024) Botswana (2024)
Honduras (2017) Nigeria (2024)
Ecuador (2024) Zimbabwe (2023)
Suriname (2016) Ghana (2015)
Argentina (2024) Angola (2022)
El Salvador (2023) Mozambique (2015)
Guyana (2019) Côte d'Ivoire (2019)
Mexico (2024) Ethiopia (2021)
Paru (2024) Liberia (2017)

Panama (2024) Mauritius (2023)

Tunisia (2019)
Colombia (2024)
Latin America and the Caribbean

Namibia (2018)
Construction

Costa Rica (2024)

Eswatini (2023)
Brazil (2024)
Seychelles (2024)
Uruguay (2024)
Niger (2017)
Chile (2020)
Total

21
The Global Housing Crisis
WORLD CITIES REPORT 2026

1.4.3 The home as an enabler Figure 1.7: Distribution of home-based workers by regions
for income generation
Developed
In many low‑ and middle‑income countries, housing serves as an important
14%
enabler of income generation through both rental arrangements and
home‑based enterprises.170 Subletting, for instance, is a common
income‑earning use of housing in some African cities.171 However,
the expansion of rental use, particularly short‑term rentals, has raised
concerns about reduced housing supply and declining affordability.172
In response, several cities, including London (UK), Vienna (Austria),
San Francisco and Washington, D.C. (US), have introduced regulations
restricting short‑term rentals to no more than 90 nights per year. Paris
imposes a limit of 120 nights, while Japan applies a nationwide annual
cap of 180 days.173

Home‑based enterprises (HBEs) constitute a significant source of

employment. A 2021 study by WIEGO and the ILO estimates that
approximately 260 million home‑based workers operate globally: of Developing
these, most (86 per cent) are in developing and emerging economies and emerging
(Figure 1.7), with women representing the majority (57 per cent) of 86%
home‑based workers worldwide.174 In OECD countries, HBEs account
Europe (6%)
for slightly more than half of all private enterprises,175 and in several
Asia and the Pacific (3%)
African countries they serve as a critical economic lifeline.176
Americas (5%)
Eastern, Southern Europe and Central Asia (2%)
HBEs flourish when housing meets key dimensions of adequacy.
Southern Asia (26%)
Evidence from Khulna, Bangladesh shows that the level of tenure
East and South-Eastern Asia (36%)
security in informal settlements significantly affects the economic
Southern Africa (<1%)
returns generated by HBEs. A lack of secure tenure can hinder enterprise
Rest of Sub-Saharan Africa (14%)
growth, while secure tenure combined with income from HBEs supports
Latin America and the Caribbean (6%)
self‑help housing processes, enabling bottom‑up, dweller‑led housing
Middle East and North Africa (1%)
consolidation.177

1.4.4 Housing as a fiscal tool for governments:

a stimulus and source of revenue
Although the housing sector is sometimes approached cautiously due
to its association with speculative bubbles and episodes of financial
34 33 32
instability,178 it remains a powerful engine of economic activity. Housing
generates substantial fiscal revenues for governments: in Jordan, it 43 45 42 45 66 67 68
46
contributes between 6 and 11 per cent of total government revenue, 57 51 58 52
58 55 54 55
while in Indonesia it accounts for roughly 8 per cent of national tax 49 48
receipts.179 Its strong multiplier effects also make the sector an effective 42
instrument for economic stimulation across a wide range of related
industries.

Historical experiences from Japan, Singapore and the Republic of Korea

underscore the central role of housing in long-term national development
Europe

Americas

Eastern, Southern Europe

Sub-Saharan Africa

North Africa
Developing and Emerging

and Central Asia

Asia and the Pacific

Latin America
and the Caribbean
Middle East and
Asia and the Pacific
Developed
World

strategies.180 The sector has also played a leading role in economic

recovery, as seen in the US, where residential investment consistently
leads the business cycle, being typically the first component to contract
and the first to recover.181

Women Men

Source: Bonnet et al., 2021.

22
 The Global Housing Crisis

During previous global crises, governments have frequently used housing ƒ Lack of access to housing is not only a question of insufficient
investment to stimulate wider economic activity, particularly through supply, but also a product of social exclusion and inequality. Narrow
construction and allied industries. During the COVID‑19 pandemic, solutions focused only on specific construction targets, without a
several countries – including India, Australia, Canada, France and New wider analysis of the specific housing needs and challenges of the
Zealand – implemented housing-focused initiatives as part of their fiscal most excluded groups, are unlikely to deliver lasting solutions for
responses. These included A$6 billion (approximately US$4.6 billion) for those currently excluded from the market.
the “Big Housing Build” in the state of Victoria in Australia; C$1 billion
(US$0.8 billion) for Canada’s Rapid Housing Initiative; and nearly ƒ Adequate and affordable housing for all is achievable only through
3 billion (US$3.4 billion) in housing investments under France’s France coordinated, multilevel action. National and local governments,
Relance economic recovery plan.182 the private sector, community actors and development partners
each hold critical responsibilities. Ensuring the full participation of
1.4.5 Housing: a cornerstone for every stakeholder, particularly those traditionally left out of housing
wealth accumulation design and implementation, is therefore key.
Housing is one of the most important tangible assets and a central
component of national wealth.183 Unlike most consumer goods, it is a ƒ Effective solutions must recognize housing as a long‑term process
long‑term investment and often the largest purchase individuals make. For that spans land acquisition, planning, construction, finance,
many households, home equity is their primary financial asset and main governance and ongoing maintenance. As past experiences
store of wealth. In the US, for example, several years after the 2008 housing show, success depends not only on policy design but also on
market collapse, 81 per cent of adults still viewed homeownership as the the institutional capacity, political commitment and financing
best long‑term investment.184 Across OECD countries, owner‑occupied mechanisms required to implement those policies at scale.
housing constitutes roughly half of all household assets – and more than
60 per cent for middle‑class households.185 In many developing countries, ƒ Housing solutions should be tailored to specific national and local
homeownership is a major driver of household savings and is widely conditions: no “one size fits all” approach exists. What is needed
regarded as essential for financial security and upward mobility. In both instead are context‑specific, multidimensional approaches that
developing and developed economies, housing also supports financial reflect local tenure arrangements, building practices, climate
intermediation by serving as collateral that enables the creation and vulnerabilities and market conditions, while remaining aligned with
expansion of small businesses. national and global commitments.

Financialization has expanded the role of housing as an asset class Importantly, the World Cities Report 2026 takes stock of the successes
and increased interest from institutional investors. These shifts have and shortcomings in housing policies globally to identify what works
contributed to affordability pressures in some contexts, sharpening the and why. By examining decades of housing policies, programmes and
tension between housing as an investment and as a basic need and human community‑driven initiatives, the Report distils practical lessons that
right. As concerns about speculative activity have grown, so too have calls can guide implementation. It identifies approaches that have delivered
for more active public measures to manage these impacts and support durable improvements in affordability, inclusion and resilience, as well
more inclusive housing outcomes.186 as those that failed due to weak institutional capacity, fragmented
governance or insufficient engagement with communities.

1.5 Concluding Remarks Drawing on this evidence, this Report provides clear and actionable
policy directions to help countries and cities realign housing systems
The challenges identified in this Report are illuminated with new data toward greater equity, sustainability and resilience. It emphasizes the
and evidence, highlighting their scale, complexity and uneven impacts need for integrated planning, diversified tenure options, expanded
across regions and population groups. While the housing crisis manifests financing tools, strengthened governance and investments that enable
differently across contexts, its structural drivers, including rapid climate‑resilient, inclusive neighbourhoods. Ultimately, resolving the
urbanization, climate risks, widening inequalities, evolving patterns of global housing crisis demands a renewed commitment to housing, both
housing investment and constrained public finances, are global in scope. as a human right and a foundation for sustainable urban development.
These forces interact with local regulatory gaps and weak governance
frameworks, creating barriers that prevent many households from
accessing adequate housing. Together, these forces show that the crisis
cannot be resolved through isolated interventions or short-term responses.

23
WORLD CITIES REPORT 2026

Endnotes

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6. Richardson, 2018. 54. UNEP, 2023a. 104. Connellan, 2015. 152. Acolin et al., 2020.
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14. UN-Habitat, 2024. 62. UN-Habitat, 2022a. 111. Wegmann & Nemirow, 2011. 160. National Council of Applied
15. Habitat for Humanity, n.d.a. 63. UN DESA, 2025, p.97. 112. Chapple et al., 2017. Economic Research, 2014, viii.
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20. UN-Habitat. 2025. 68. Perry, 2016. 117. Van Oostrum & Dovey, 2024. 164. Tibaijuka, 2009.
21. IDMC, 2025. 69. Ceicdata, n.d. 118. Crabtree-Hayes, 2024. 165. ILO, n.d.
22. UN-Habitat, 2024a, p.301. 70. Glaeser & Gyourko, 2018. 119. Moore & McKee, 2012. 166. Associated General Contractors of
23. UN-Habitat, 2024a, p.301. 71. US Department of the Treasury, 2024. 120. Gardner & Nasserjah, 2020. America, 2025.
24. UN-Habitat, 2023b. 72. Sultan & Kajewski, 2003. 121. Kim, 2025. 167. Nenova, 2016, p.2.
25. United Nations, 2025b (2024 data). 73. Centre for Affordable Housing 122. Ardila et al., 2024. 168. UNEP, 2023a.
26. UNHCR, 2025a. Finance in Africa, 2019. 123. Gupta et al., 2021. 169. Gardner & Lockwood, 2019.
27. IDMC, 2025. 74. Bah et al., 2018, p.191. 124. Immanuel & Baskar, 2023. 170. Tibaijuka, 2009; Arku, 2006.
28. Institute of Global Homelessness, 75. National Construction Industry 125. Mañosa et al., 2024. 171. Tibaijuka, 2009.
2024. Council, 2024. 126. van den Bergh et al., 2022. 172. Heinzl & Gorelick, 2024.
29. Institute of Global Homelessness, 76. Arundel, 2017. 127. Kim, 2025. 173. Symons, 2023.
2024. 77. Dong, 2018. 128. World Habitat, 2024. 174. Bonnet et al., 2021.
30. OECD, n.d.-a. 78. Dewilde & Lancee, 2013. 129. UNEP, 2023a. 175. Reuschke & Domecka, 2018.
31. United Nations, 2025c. 79. Ioannides & Ngai, 2025. 130. Hu, 2023. 176. Ezeadichie et al., 2022.
32. Gaddis et al., 2018. 80. Ryan-Collins, & Murray, 2023. 131. UNEP, 2023a. 177. Piashi et al., 2023.
33. ECLAC, n.d. 81. Botros, 2025. 132. Cosentino et al., 2024. 178. Collier & Venables, 2014.
34. Eurostat, 2025. 82. Ioannides & Ngai, 2025. 133. Bayeroju et al., 2019. 179. World Bank, 2018, p.3; World Bank,
35. IMF, 2022. 83. UNICEF, 2022, p.4. 134. UNHCR, n.d. 2025.
36. UN-Habitat, 2026. 84. Arundel, 2017. 135. Minunno et al, 2021. 180. Arku, 2006.
37. UN-Habitat, 2026. 85. Forrest & Hirayama, 2015. 136. Bayeroju et al., 2019. 181. Leamer, 2007.
38. Adams, 2020. 86. United Nations, 2023a. 137. UNEP, 2025. 182. OECD, 2021b.
39. UN-Habitat, 2026. 87. Ryan-Collins & Murray, 2023. 138. UNEP, 2023a. 183. Collier & Venables, 2014.
40. Behr et al., 2021. 88. Gallent et al., 2017. 139. Fields, 2019. 184. Pew Research Center, 2011.
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42. Sukhwani et al., 2021. 90. Del Negro et al., 2019. 141. Landau-Ward & Porter, 2019. 186. Dancygier & Wiedemann, 2024.
43. Maravalle et al., 2024, p.20; Habitat 91. Moreno et al., 2014. 142. Rolnik, 2019.
for Humanity, n.d.b., p.5; Ahadzie & 92. United Nations, 2023b. 143. Tibaijuka, 2009.
Amoa-Mensah, 2010. 93. Farsangi, 2023. 144. Tibaijuka, 2009; Arku, 2006.
44. Data from UN-Habitat database. 94. UN-Habitat, 2023. 145. CAF-Development Bank of Latin
45. Smets, 2019. 95. McNee & Pojani, 2022. America and the Caribbean & Lincoln
46. UN-Habitat, 2009a. 96. World Bank, 2015. Institute of Land Policy, 2024.
47. Gurran, et al., 2024. 97. UN-Habitat, 2026a. 146. Eurostat, n.d.
48. Arku, 2006. 98. UN DESA, 2024, p.22. 147. ILO, 2021; McKinsey, 2020.

24
 The Global Housing Crisis

People walk along the newly transformed pedestrian-oriented

Luthuli Avenue in downtown Nairobi, Kenya © UN-Habitat/Mark Ojal

25