The International Finance Corporation (IFC) has commissioned the Affordable Housing Institute (AHI) and Athena Info omics to support the development of affordable housing through public-private partnerships (PPP) in Papua New Guinea (PNG). This report looks into the current state of the housing ecosystem in Papua New Guinea with a specific focus on Port Moresby. The housing sector is analyzed along the supply and demand side of the housing value chain in order to determine key weak areas that are impeding the development of affordable housing and can be addressed through targeted interventions. Special attention is also paid to the local gender, regulatory and environmental issues in the country which need to be carefully taken into account when developing large-scale housing developments. Papua New Guinea is one of the least urbanized countries in the world and its capital, Port Moresby, has significant amounts of unused land. Despite the availability of land, Port Moresby suffers from a high qualitative and quantitative housing deficit due to the extremely high housing prices forcing many households to live in the city’s growing informal settlements. According to the National Capital District (NCD) over 45% of the 700,000 people in the area live in informal settlements. Households in informal settlements lived in don’t have security of tenure and tend to lack access to basic infrastructure, such as water, sanitation and power. With the rural-to-urban migration and high population growth rates, informal settlements are growing faster than the rest of the city and are expected to house 56% of the population by 2030. Given the large housing deficit, many Government agencies and local developers have sought to develop affordable housing for the middle class. Despite these efforts the public sector has failed to launch many of its programs and the private sector has not been able to significantly lower price points. An analysis of the housing ecosystem, shows that the major hurdles lie on the supply side of the housing value chain where the availability and cost of land and trunk infrastructure create major bottlenecks to the delivery of affordable housing. On the demand side of the housing value chain, mortgage rates are low and tenors are long. However, mortgages are only available to households working in the formal sector, excluding the majority of the population.