This document gives an insight to housing demand and supply condition prevailing in Saudi Arabia, in the light of lack of mortgage system and low financing penetration, lack of affordable housing, shortage of arable land for affordable housing construction, supply – demand gap, rising land prices, and cultural and infrastructural considerations. House ownership is still at a very low level in these three cities. Riyadh and Jeddah registered a household ownership of 33% and 34% respectively, for the total number of households in those provinces. Household ownership for Dammam was higher at 40%.