Housing is a special consumer good and an important part of financial markets. It is the largest component of the typical household asset portfolio and often the largest single category of household expense. It is a key component in creating stable and healthy communities and a very visible indicator of social welfare.

Because housing finance is both a key part of the financial sector and an important method for enabling households to expand their effective demand for housing, it has become a focus of attention among policymakers worldwide. Since the late 1980s, the discussion has emphasized the development of sustainable private housing finance systems, with the government playing an enabling role in expanding their reach [World Bank, 1992].