SPECIAL FEATURE
Though the housing crisis in the Global South clearly needs to be mitigated, there are no easy solutions and many actions have already been taken. Addressing the housing crisis requires a multifaceted approach involving various stakeholders: What are some ways out of the crisis?
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Construction Materials Low-cost construction materials are being used in several countries around the world – replacing bricks and mortar – to bring down the price of housing and speed up the building process. The cost of constructing a home using low-cost materials can be 20-30 percent cheaper reflecting the reduced need for cement and steel, along with associated reduced labor costs. Public-Private Partnerships Public-private partnerships (PPPs) focusing on affordable housing can finance, develop and manage affordable housing projects. Typically, the government provides land, development rights and tax incentives or subsidies, while housing developers and investors contribute financing, architectural design, construction expertise and operational management. 7
Construction Methods In 3D-printed homes the primary structural components like walls and foundations are constructed using industrial-sized 3D printers. Doors, windows, plumbing and electrical wiring are added at later stages. A main benefit of 3D-printed homes is reduced construction time. Associated Costs Investments in energy-efficient housing can reduce long-term living costs. Additionally, charities, philanthropists and other socially- focused organizations can step in to provide funding (for land purchase or construction) or provide pro-bono services such as legal advice and support (for example, to complete a real estate purchase and title register). 9
Government Action Governments should play a proactive role by implementing policies that promote affordable housing development, such as investing in social housing, providing targeted subsidies and enforcing sensible rent controls. mortgage products – but this would come at a cost to them and their shareholders. 2 Mortgages Banks could develop more inclusive lending practices and offer affordable Monetary Policy Central banks can influence housing affordability through appropriate monetary policies that help stabilize mortgage interest rate repayments and prevent speculative bubbles – balanced with attaining low inflation and high employment. 3 Land Ownership Community land trusts are non- profit organizations that acquire land and remove it from the speculative real estate market, enabling home construction on that land to be rented, owner-occupied or cooperatively owned. 5 Community Action Individuals can advocate for housing rights and participate in cooperative housing initiatives. Financial literacy programs can also help households manage housing costs more effectively. 4
Conclusion Resolving the housing crisis requires a coordinated effort that balances market dynamics with social responsibility. Governments, financial institutions, individuals and communities need to collaborate to ensure housing is accessible, affordable Individuals can advocate for housing rights and participate in cooperative housing initiatives. Financial literacy programs can also help households manage housing costs more effectively. and sustainable for all. Addressing this fundamental issue not only improves living standards but also strengthens the socioeconomic fabric of societies worldwide.
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