SPECIAL FEATURE
“The underlying factors driving the affordability crisis are rooted in structural shifts spanning recent decades.” Balakrishnan Rajagopal, UN Special Rapporteur on the right to adequate housing
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What is causing the current housing crisis? The World Economic Forum has declared that we are in the midst of a global housing crisis1. Around 1.6 billion people worldwide lack adequate housing, according to a 2023 UN report presented to the UN General Assembly2; experts say this could rise to 3 billion by 2030. In order to house those 3 billion people, the world will need to build 96,000 new affordable homes every day. In that report, Balakrishnan Rajagopal3, the UN Special Rapporteur on the right to adequate housing, said “the underlying factors driving the affordability crisis are rooted in structural shifts spanning recent decades.”
Photo: Nolte Lourens/Shutterstock
levels to establish realistic affordability benchmarks. This, however, can bring regional disparities in wages and housing affordability into conflict. For example, capital cities tend to offer higher wages (because they attract the most highly skilled and able workers), but also higher housing costs (due to increased demand for limited housing resources). In neighboring regions, wages may be similar or the same as in the capital city (aided by good transport links that encourage commuting), but housing costs may be lower due to the time-effect required to commute to a well-paying job. The dilemma for policy-makers is how to enact regulations, such as rent controls or housing subsidies, to ensure fair housing costs across areas that have different income levels, housing infrastructure and transport links.
1 https://www.weforum.org/stories/2024/06/global-housing-crisis-practical-solutions/#:~:text=We%20are%20in%20the%20grip,day%2C%20UN%2DHabitat%20says 2 https://www.ohchr.org/en/documents/thematic-reports/a78192-place-live-dignity-all-make-housing-affordable-report-special 3 https://www.ohchr.org/en/special-procedures/sr-housing/mr-balakrishnan-rajagopal
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