Confronting the Urban Housing Crisis in the Global South

Urban housing is a critical issue facing cities around the world. As urban populations continue to grow, the demand for well-located, adequate, secure, and affordable housing has reached unprecedented levels. The global affordable housing gap is currently estimated at 330 million urban households, a number that is projected to increase by over 30 percent to 440 million households, or 1.6 billion people, by 2025. This paper aims to address the multifaceted challenges of urban housing and proposes innovative solutions to ensure that cities remain equitable, productive, and sustainable.

One of the most pressing challenges in urban housing is the rapid growth of informal or substandard settlements. These settlements often lack basic infrastructure and services, putting residents at risk of health issues and social instability. The lack of formal land tenure and inadequate building materials further exacerbate the problem, making these areas vulnerable to environmental hazards and urban sprawl.

Another significant challenge is the overemphasis on homeownership. While homeownership can provide stability and wealth accumulation, it is not a feasible solution for all urban residents. High housing prices and limited access to affordable mortgages make homeownership unattainable for many low-income families. This overemphasis on homeownership can lead to a shortage of rental housing, further exacerbating the housing crisis.

Inappropriate policies and laws also contribute to the urban housing crisis. Many cities have zoning regulations and building codes that push low-income residents out of the city centre, forcing them to live in peripheral areas with limited access to jobs, education, and healthcare. These policies often prioritize commercial and luxury developments over affordable housing, leading to increased inequality and social fragmentation.

To address these challenges, this paper proposes a new approach to analyzing housing options. Traditional analyses often rely on dichotomies such as formal/informal, public/private, and individual/collective. However, these dichotomies fail to capture the complexity of urban housing needs. Instead, the paper suggests considering a spectrum of options that combine different elements of ownership, space, services, and finance. This holistic approach allows for more flexible and inclusive housing solutions that can cater to diverse urban populations.

One scalable approach to addressing the urban housing crisis is the in situ participatory upgrading of informal settlements. This approach involves working directly with residents to improve existing settlements rather than relocating them to new areas. By involving residents in the planning and implementation process, this approach ensures that the needs and priorities of the community are met. In situ upgrading can include infrastructure improvements, regularization of land tenure, and the provision of basic services such as water, sanitation, and electricity. This approach not only improves living conditions but also fosters a sense of community ownership and pride.

Promoting rental housing is another scalable solution to the urban housing crisis. Rental housing provides flexibility and affordability, making it an attractive option for low-income families and young professionals. By increasing the supply of rental housing, cities can reduce the pressure on homeownership and provide more diverse housing options. Governments can support rental housing through policies such as rent control, tenant protection laws, and incentives for developers to build affordable rental units. Additionally, public-private partnerships can be leveraged to develop mixed-income rental communities that integrate affordable and market-rate units.

Converting under-utilized urban land to affordable housing is a third scalable approach. Many cities have vacant lots, abandoned buildings, and under-used industrial areas that can be repurposed for housing. By identifying and redeveloping these areas, cities can create new opportunities for affordable housing without expanding urban boundaries. This approach not only addresses the housing shortage but also promotes urban regeneration and economic revitalization. Governments can play a crucial role in facilitating these conversions through land-use policies, tax incentives, and public investment in infrastructure.

Addressing the challenge of adequate, secure, and affordable urban housing is essential to enhancing the equity, economic productivity, and environmental sustainability of cities. By adopting in situ participatory upgrading of informal settlements, promoting rental housing, and converting under-utilized urban land to affordable housing, cities can create more inclusive and resilient communities. Policymakers, urban planners, and community leaders must work together to implement these scalable solutions and ensure that urban housing meets the needs of all residents.