Government in the developed and developing countries have tried to tackle the problem of housing discrepancy to their nations over the last three decades. This paper has emphasized that a pragmatic housing policy in Yemen should endeavor to resolve the contradictions among “need”, “demand” and “supply” in the housing market. It reveals that there is a peculiarity between top–down and bottom up supply to gratify effectiveness and fairness in housing policy. It scrutinized the experience of housing policies in developed and developing countries. It presented the Public Private Partnership (PPP) as a promising housing policy in both developed and developing countries. It explored the evolution of housing policy in Yemen the case of Aden city, signifying that (PPP) is a promising housing policy that could be carefully adopted as housing policy in Yemen.