Housing is an essential part of cities and a key driver of urbanization because it determines urban form and density, provides access to employment opportunities and services and contributes to economic growth. But over the past few decades national and local government policies have failed to promote adequate and affordable housing for the growing urban population. Cities around the world are experiencing an affordability crisis, with rising house prices, low incomes, and barriers to supply. The scarcity of affordable housing in turn contributes to the unsustainable expansion of urban areas, which brings significant social, environmental, and economic consequences. Among them are constraints to the productivity and efficiency of cities, which limits the economic development potential of entire countries.

Providing adequate housing to millions of households—and doing so in ways that guarantee sustainable development—requires shifting housing policy and practice. And while cities face significant housing challenges that affect residents’ quality of life and productive potential, they are also at the center of the solution. Designing comprehensive strategies at both the national
and local levels, tailored to the needs of a city, can increase affordable housing and promote sustainable growth.