A Blueprint for Addressing the Global Affordable Housing Challenge

This report enquires into the problems both developing and advanced economies face while addressing the challenges of housing their poorest citizens and providing housing at a reasonable cost for low-and middle-income populations. It analyzes how the problems are likely to grow in the next decade and offers a set of solutions that can narrow the affordable housing gap. The report suggests that cities need to think more broadly and creatively about a housing ladder that includes affordable housing and also accommodates citizens of all income groups and considers their changing needs. Key findings include:

• Globally 330 million urban households live in substandard housing or are financially stretched by housing costs. This number could increase to 440 million by 2025;
• Housing affordability gap is equivalent to USD650 billion per year;
• By 2025, to replace today's substandard housing and build additional units, a total investment of around USD25 trillion to USD27 trillion will be required;
• Unlocking land at the right location, value engineering and industrial approaches, increasing operations and maintaining efficiency, and reducing financing costs for buyers and developers could reduce the cost of affordable housing by 20% to 50%;
• Affordable housing is an overlooked opportunity for developers, investors, and financial institutions.