Global Housing Crisis Takes Center Stage at World Urban Forum

Surabaya, Indonesia, hosted the World Urban Forum last month, focusing on sustainable housing challenges. The city’s population has surged by 23% in the past decade, putting immense pressure on urban infrastructure. Informal settlements are expanding rapidly as planned housing fails to keep pace.

The forum’s closing statement on October 3, 2023, asserted that housing is the "bedrock of urban development and social cohesion." Over 10,000 delegates from 160 countries attended, including local officials, private developers, and NGOs. A striking statistic emerged: the world’s urban populations will increase by 2.5 billion by 2050, with 90% of this growth concentrated in Asia and Africa.

"We are looking at the most significant urban migration in human history," said Maimunah Mohd Sharif, Executive Director of UN-Habitat. "Failing to address housing at scale risks pushing millions into overcrowded and unsafe living conditions."

Sharif’s concerns reflect reality. In Nairobi, nearly 60% of residents live in informal settlements like Kibera, according to a study by the African Population and Health Research Center. In Mumbai, Dharavi exemplifies demand outpacing supply, with over 50% of residents living in slums occupying just 9% of the city’s land.

Global strategies vary widely. In Vienna, social housing projects funded through cooperative models constitute over 60% of the city’s housing stock. "Vienna demonstrates the long-term dividends of investing in public housing," noted Anna König Jerlmyr, Mayor of Stockholm. Yet, even in Europe, affordability remains a challenge. In Berlin, rents have surged by 40% since 2011, according to the German Federal Statistical Office.

The private sector is innovating with modular construction and 3D-printed housing. In Bengaluru, Indian startup Tvasta Manufacturing Solutions piloted a 600-square-foot 3D-printed home in 2022, reducing construction time to just five days. However, Sharif cautioned, "Technology alone cannot replace inclusive policymaking. Innovation must serve, not sideline, the most vulnerable."

Regulatory frameworks and funding mechanisms are critical for scaling solutions. Thailand’s Community Organizations Development Institute (CODI) has been praised for its Baan Mankong programme, which has helped 1.8 million people secure improved homes between 2003 and 2020, as reported in CODI’s annual report.

Barriers remain in adapting such models to cities with complex land ownership issues. In Lagos, affordable housing projects have been criticized for prioritizing middle-income buyers over the urban poor. A 2021 report by the Centre for Affordable Housing Finance in Africa revealed that over 70% of Lagos residents cannot afford the cheapest newly built units.

Climate resilience was a key topic at the forum. Housing must address challenges like floods and rising sea levels, particularly in low-lying megacities such as Jakarta and Bangkok. Indonesia’s capital is sinking up to 25 cm annually, according to the Bandung Institute of Technology, prompting the government’s $32 billion Nusantara project, which has faced criticism for diverting resources from Jakarta's immediate housing needs.

"We must ensure all housing is not only adequate but future-proof," said Leilani Farha, Global Director of The Shift. "This requires governments to thread housing and climate agendas into a unified framework." The forum recommended mandatory climate risk assessments for all new urban housing developments by 2030, aligning with the Paris Agreement.

Financial inclusion was a recurring theme. Delegates supported expanding access to microfinance for low-income urban residents, particularly in Sub-Saharan Africa and South Asia. In Dhaka, Grameen Bank’s microloan programmes have enabled over 120,000 informal settlement residents to upgrade home structures since 2018.

The World Bank estimates that closing the global housing gap will require $16 trillion in funding by 2040. However, as several speakers noted, political will often fades after summits. "The commitments sound impressive," said David Madden, a housing policy researcher at the London School of Economics. "The challenge is ensuring follow-through once the spotlight moves on."

As the forum concluded, a new task force, co-chaired by representatives from Kenya and South Korea, will draft an implementation roadmap for the forum’s recommendations ahead of the next convening in 2026. For families in Kibera, Dharavi, and Jakarta’s kampungs, the question remains: will progress arrive in time?

The housing crisis is a test of collective priorities. Whether Vienna’s cooperative model, Bangkok’s community-driven upgrades, or Bengaluru’s technological pilots will lead the way remains uncertain. Without bold action, cities risk becoming engines of inequality rather than equity.