The housing sector in Bangkok has been described as a model for other fast-growing Asian cities, because of the shift by the private sector into low-cost housing, initially row houses, later apartments. This article reviews the factors that contributed to the down-market trend: the strong demand for housing as a result of rapid economic growth, the supply by a dynamic private sector constantly in search of new markets, the housing policies of the Thai government, and the efficiently operating housing finance system. However, many low-cost housing units are vacant, while many low-income families still live in slums and squatter settlements. Part of the housing demand proved to be speculative in anticipation of future increases in land and house prices, while the low-cost apartments and their location proved unattractive to the low-income population