Baku, Azerbaijan | A newly released report by UN-Habitat has warned that the global housing crisis has reached alarming levels, with nearly 3 billion people — around 40 per cent of the world’s population — currently struggling with unaffordable housing, shortages, poor-quality living conditions, and inadequate urban services.
The findings were presented during the ongoing World Urban Forum 13 in Baku, where global leaders, urban planners, policymakers, and development experts are discussing the future of sustainable cities and housing.
According to the World Cities Report 2026: Global Housing Crisis: Pathways to Action, the shortage of adequate and affordable housing has increased by nearly 30 per cent in just over a decade, reaching more than 268 million housing units globally. Around 1.1 billion people are currently living in slums or informal settlements across the world.
The report highlights that rapid urbanization, rising land prices, growing inequality, climate change impacts, and increasing displacement are intensifying the crisis. Cities worldwide are expected to accommodate an additional 2 billion residents by 2050, putting immense pressure on already stressed housing systems. Climate-related disasters are also projected to destroy nearly 167 million homes by 2040.
Housing affordability has significantly worsened in many regions. Globally, housing price-to-income ratios increased from 9.3 in 2010 to 11.2 in 2023, while Central and Southern Asia recorded figures as high as 16.8. The report also points to declining access to housing finance, with only 25.5 per cent of global housing loan applicants successfully obtaining loans in 2023.
Another major concern raised in the report is forced displacement. By the end of 2024, approximately 123.2 million people had been forcibly displaced worldwide — nearly double the number recorded a decade ago. Many displaced populations continue to migrate toward cities, often settling in vulnerable and informal housing environments.
Despite the severity of the situation, the report emphasizes that the crisis can still be addressed through stronger public investment, affordable housing policies, inclusive urban planning, and better financing mechanisms. It calls for governments and stakeholders to move away from exclusionary approaches and instead recognize informal settlements as part of the urban reality requiring integrated improvement strategies.
“A new social contract for adequate and affordable housing is required — a sense of shared responsibility among governments, the private sector and communities,” said Anacláudia Rossbach while addressing the issue.
The report has been released at a time when housing affordability, urban migration, and climate resilience are emerging as some of the most pressing global urban challenges, especially for rapidly growing cities in developing nations.
Also Read: UN-Habitat to Launch World Cities Report 2026 on Global Housing Crisis at WUF13
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