This report compiled by World Economic Forum (WEF) and consultants PwC looks at how innovations such as robotic bricklayers, 3D printing and furniture that can be stowed away at the wave of a hand could all help to address the global deficit in affordable housing
Cities are growing at an unprecedented rate, presenting an incredible opportunity for the development of local economies. However, their residents need good, affordable housing – and this remains a challenge around the world.
Well-functioning property markets can act as a financial springboard for enterprises and job creation. An enabling environment for affordable housing can be developed with the right infrastructure, investment and macroeconomic policies targeted towards social and financial inclusion.
The challenge of affordability requires not just short-term fixes but also long-term strategies. Solutions will need to address both the supply side and the demand side of the housing market, and involve public-sector, private-sector and non-profit stakeholders.
The extent of the affordable housing challenge, however, varies across geographies. The housing market is affected not only by market conditions but also by socio-political factors, environmental factors and the regulatory landscape of countries and cities.
Finding solutions in a particular city requires a broader understanding of what constitutes affordability and the factors that affect it. Ensuring the healthy functioning of the housing market requires actions that address inter-dependencies on the supply-side while stimulating interventions on the demand-side.
This Insight Report explores both supply-side and demand-side dynamics. On the supply side, these include land acquisition and regulation, upgrading property tenures, financing models, and design and development costs.
On the demand side, issues include how to determine eligibility for affordable housing, the range of tenure models for different demographics, and provisioning appropriate access to credit.
The Insight Report carefully analyses each of these challenges for different stakeholders and provides them with specific recommendations to impact the city housing market in a city. It guides decision makers towards strategic interventions and long-term reforms that can reduce dependence on government support systems and incentivize more commercially viable affordable housing through policies and practices that address systemic gaps in the housing value chain.