In general, the term affordable housing refers to housing provided to a domestic population with restrictions on the price of rent or sale. The restriction, typically represented by a cap on the price, is meant to allow households at the lower end of the income spectrum access to the unit. Affordable housing is housing that is deemed affordable to those with a median household income at or below an established threshold as rated by a national government or a local government housing affordability index. With a growing youthful population demographic and a rapid drive toward modernization, Affordable Housing is a key real estate development policy issue facing the Kingdom of Saudi Arabia. An examination of international best practices along with a keen understanding of the local market can lend insights towards a successful affordable housing policy.