Housing is a basic need of human being for privacy, safety, and protection. Housing is affordable if it is accessible within 20% to 40% of gross monthly household income. Sustainable- affordable habitat could be described as a way of developing and maintaining the living environment supporting human health (both physical and psychological), satisfying shelter needs along with protecting and preserving nature for future generations. Almost all developing countries are facing a shortage of sustainable affordable housing. Many countries have adopted various approaches to mitigate the gap between the demand and supply of affordable housing and some of them have become successful like Singapore, Malaysia, Thailand, etc. Pakistan is among the top ten populous countries in the world with the fastest-growing urban population. There is a huge housing shortage of about one million houses in the country. Although various initiatives have been taken by the government to mitigate this gap, it is increasing every year. This paper discusses the housing situation in Pakistan, highlights problems in Pakistan faced by the people, and gives some suggestions to resolve the issue.