Making Affordable Housing a Reality in Cities

The report analyzes the global affordable housing crisis, defining affordability not just by cost but by access to services. It identifies key supply-side barriers including land acquisition, restrictive zoning, and high construction costs, while examining demand-side issues like eligibility and tenure models. The document proposes a value-chain approach to housing, suggesting innovations in construction technology (such as 3D printing), diverse financing models (including Islamic finance and REITs), and regulatory reforms like inclusionary zoning to increase the availability of safe, sustainable, and affordable urban homes.

• Global housing affordability is in a critical state, with UN data indicating that only 13% of the world's cities have affordable housing. Projections suggest that by 2050, 2.5 billion people will live in substandard housing or be financially stretched by housing costs.
• Affordability is a multidimensional concept that extends beyond the purchase price or rent to include the cost of keeping the house and the accessibility of work and social infrastructure. Housing is not considered affordable if it is located too far from economic opportunities.
• Land acquisition is a primary supply-side challenge. The report highlights innovative strategies such as land-pooling, where owners exchange land for smaller developed plots, and tradeable land quotas used in Chinese cities like Chengdu and Chongqing to balance urban development with agricultural preservation.
• Zoning and land-use regulations often inflate prices or cause urban sprawl. The report suggests 'inclusionary zoning' to mandate affordable units and 'algorithmic zoning' using data to reward pro-social development. It also notes that high Floor Space Index (FSI) restrictions in Indian cities like Mumbai, Chennai, and Bengaluru contribute to affordability issues.
• Financing affordable housing requires diverse instruments beyond traditional bank loans. These include government-guaranteed bonds, Real Estate Investment Trusts (REITs), and Islamic finance (sukuk), which avoids interest (riba) and hoarding (iktinaz).
• Construction costs can be reduced through technological innovation and alternative materials. Examples include 3D-printed homes, modular manufacturing, and materials like glass fibre-reinforced gypsum (GFRG) in India or cross-laminated timber (CLT) in the US and Canada.
• Demand-side challenges include the difficulty of determining eligibility and the need for diverse tenure models. The report advocates for a mix of rental, shared-equity ownership, and homeownership to improve labor mobility and accessibility for different income brackets.
• Informal settlements present unique challenges for credit access. The 'Home Asset Loan Financing' (HALF) model, used in Peru, Mexico, South Africa, and India, addresses the 'missing middle' by providing loans based on the property as a real estate asset rather than formal titles.

APA

World Economic Forum (2019). Making Affordable Housing a Reality in Cities. http://www3.weforum.org/docs/WEF_Making_Affordable_Housing_A_Reality_In_Cities_report.pdf

Chicago

World Economic Forum. Making Affordable Housing a Reality in Cities. 2019. http://www3.weforum.org/docs/WEF_Making_Affordable_Housing_A_Reality_In_Cities_report.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Making Affordable Housing a Reality in Cities |date=June 2019 |url=http://www3.weforum.org/docs/WEF_Making_Affordable_Housing_A_Reality_In_Cities_report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2019making, author = {{World Economic Forum}}, title = {{Making Affordable Housing a Reality in Cities}}, institution = {World Economic Forum}, year = {2019}, month = jun, url = {http://www3.weforum.org/docs/WEF_Making_Affordable_Housing_A_Reality_In_Cities_report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }