Rapid urbanisation in Bhutan has led to a surge in demand for affordable housing. This article, based on reports, scholarly papers, and policy documents, looks at the prominent challenges for national and local governments in providing affordable housing. It draws applicable and potentially transferable lessons from case studies of Vienna and Singapore which have successful housing programmes. Some lessons learnt are the innovative use of government land to deliver affordable housing, the need for a central co-ordinating agency, commitment from the government, and the participation of private developers in solving housing issues.