This document is giving a brief but comprehensive picture of Tanzania’s usable land and housing matters. It informs that, Tanzania has no housing policy but has a National Human Settlements Development Policy (NHSDP) which provides some guidelines for human settlements. There is lack of formal mortgage housing finance facilities. This has made housing construction a difficult process. This paper is divided into five sections, the first section is about shelter situation analysis, section two identifies the critical housing problem of plot sizes and affordability, analysis of the critical problem, section four is about proposal for change and improvement and last section is about action plan.