Global Housing Issues

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Abstract

Homelessness due to lack of adequate and affordable housing is a major global issue that needs

urgent attention from all the relevant stakeholders. The global housing crisis is an unfortunate

reality because the crisis can be avoided with more inclusive and social housing policies. In this

case, housing policies that exclude low-income families contribute to the ever-increasing cases

of homelessness. Understanding the housing problem from a global perspective is critical when it

comes to developing comprehensive and long-term interventions that can help address the global

housing issues. Millions of people cannot afford the available units because of the high buying

and rental prices, and that is why homelessness is on the rise. Even though the extent of the

housing crisis may vary from one country to another, the reality is that most countries continue

to struggle with the housing issue. The housing issue is a cultural aspect that is rarely discussed

in most housing literature because cultural diversity impacts accessibility and housing prices.

Housing demand in cities with culturally diverse populations compared to cities without cultural

diversity. Therefore, the global housing issue can be addressed through hegemonic housing

ethics, inclusive social housing programs, and removing regulatory and financing barriers in the

housing sector.

Global Housing Issues

Housing is a fundamental human right, and it is unfortunate that millions of people

around the world have no adequate housing or remain homeless due to poverty and unsustainable

housing policies. Most cities around the world face a housing problem due to overpopulation,

and this has increasingly become a global crisis. Lack of safe and adequate housing leads to

social instability and a decline in economic productivity. Moreover, homeless people are exposed

to many health risks compared to those who have comfortable shelter. As a result, housing

should be a priority for governments and policymakers that want to guarantee the well-being of

their people. In this case, it is important to identify the underlying causes of the current global

housing crisis before coming up with sustainable solutions. Although the extent of the housing

crisis may vary from one country to another, the reality is that housing remains a major global

issue. Access to safe, adequate, and affordable housing is a fundamental human right that

governments and policymakers should prioritize through hegemonic housing ethics,

investment in social housing programs that consider the unique housing needs of diverse

cultural groups, and removing regulatory and financing barriers in the housing sector.

Literature Review

Global housing issues are broad and complex, and that is why the subject requires an

elaborate review to understand all the underlying issues and some of the solutions to the

problem. Since this is a global issue, the review is not limited to any specific jurisdiction.

Housing is a concern for national governments and global institutions because it is a major

sustainable development factor. Understanding the housing problem from a global perspective is

critical when it comes to developing comprehensive and long-term interventions that can help

address the global housing issues. This literature review will cover the extent of the current

global housing crisis, the cultural diversity impacts on global housing issues, ethical perspectives

and implications on the global housing issue, and some of the solutions to the global housing

crisis.

The Extent of the Global Housing Crisis

Homelessness is a challenge in many countries, even though the level may vary from one

country to another. According to McRae (2022, par. 2), more than 1.8 billion people worldwide

have no dignified shelter, which is why this should be a major concern for both national

governments. This excludes other millions who face the threat of eviction with no hope of

resettlement. The housing crisis exacerbates other social challenges, such as increased poverty

rates, health problems, and possible social unrest (McRae, 2022, par. 2). Sustainable

development is a broad goal, and adequate and safe housing is one of the major determinant

factors of sustainable development. Coupe (2020, p. 430) believes there is a need to consider

global solutions and cross-border policies to address the ever-increasing housing crisis. Thus,

affordability and adequacy are the main issues in global housing.

In some countries, affordability is the main challenge as opposed to the availability of

adequate housing units. Most people cannot afford the available units because of the high buying

and rental prices, and that is why homelessness is on the rise. The private sector and

governments have made massive investments in the housing sector, but most of the housing

programs do not address the issue of affordability (Coupe, 2020, p. 429). Coupe (2020, p. 429)

states that “…concerns about housing affordability are widespread both within and across

countries, but the extent of these concerns depends greatly on the country, the subgroup and the

indicator analyzed.” Some countries have other critical areas of concern than housing, but this

does not mean they have no housing problems. The only difference is that the rate of

homelessness is very low. Low-income countries are the most affected by the housing crisis

because most people cannot afford decent and dignified housing. Most housing policies in low-

income countries fail to address the issue of affordability and adequacy.

Housing should be a priority because some of the existing statistics when it comes to

homelessness depict a desperate situation. McRae (2022, par. 1) observes that “homelessness is

on the rise, and the cost of housing is increasing at an alarming rate while the availability of

decent housing dwindles.” Most cities in developing countries have been experiencing an

increase in informal settlements due to poor housing policies and overpopulation. For a country

like India, it is estimated that more than 15 million people face the threat of eviction (McRae,

2022, par. 1). Unfortunately, the evictees have to hope for resettlement because there are no clear

policies to address the problem of homelessness. Therefore, affordability, adequacy, and

evictions contribute to the current global housing crisis.

There is a false notion that homelessness is a third-world problem. This is far from reality

because global powers like the United States still struggle with housing issues. McRae (2022,

par. 2) observes, "On the other side of the world, in Los Angeles, homelessness grew by 25 per

cent between 2018 and 2020.” This is enough proof that homelessness is a global issue and

should approached from an international perspective. Some root causes of the housing crisis in

places like California include wage stagnation and the absence of affordable housing units for

rental or buying purposes. A city like Los Angeles runs the risk of mass evictions if the existing

housing challenges are not addressed on time (McRae, 2022, par. 3). Governments outsource

their housing obligations to the private sector, and it is important for the governments to ensure

that the private sector treats housing as a human right. Apart from affordability, inadequate

housing supply is a major challenge in many jurisdictions. Therefore, most housing policies are

designed to harm many and benefit a few. This contradicts expectations that housing, as a human

right, should benefit everyone.

Cultural Diversity Implications

The housing issue is a cultural aspect that is rarely discussed in most housing literature.

From the recent trends, it is evident that cultural diversity has emerged as a major factor in

housing accessibility and prices. Cultural diversity can contribute to a housing crisis even though

it can also be used as a driving factor in addressing the housing problem. According to Bayar

(2016, p. 3), housing demand is for cities with culturally diverse populations compared to cities

without cultural diversity. Germany is one of the countries whose housing prices and demand are

largely influenced by cultural diversity. After analyzing rental prices in major German cities

between 2003 and 2013, Bayar (2016, p. 3) established that “…an increase of the Herfindahl

index as a measure for the cultural diversity of 0.1 would increase rents by over 12 per cent after

controlling for relevant explanatory variables and city and time fixed effects.” This means that

culturally diverse cities have a high demand for housing, which leads to high rental prices.

Natives are willing to pay high rental prices to live in culturally diverse cities compared to those

dominated by foreigners or migrants (Bayar, 2016, p. 3). Moreover, the high quality of life in

culturally diverse districts is a major attraction to natives.

Global cities can take advantage of cultural diversity to find solutions to the housing

crisis. Cultural diversity can enrich the local economy and, in the process, help reduce the

challenge of homelessness. Such a city can develop through the new skills, products, and

services that come with cultural diversity (Bayar, 2016, p. 5). Cities can achieve optimal growth

without the right environment and the creative diversity needed for socio-economic

development. Therefore, cities that adopt a more inclusive approach in their housing programs

and policies are more likely to address the housing issue than those with no cultural inclusivity.

According to Bayar (2016, p. 5), the dual nature of cultural diversity means that governments

and policymakers must find ways to use it to their advantage in addressing the housing problem.

Thus, cultural diversity can be used positively to address the current housing crisis.

Many countries in the developed world have housing problems because of migration,

which calls for proactive housing policies. The migrants have unique housing needs based on

their cultural backgrounds, which city planners must consider in their host countries. Findlay

(2011, p. 2) observes that the unique housing needs may be in terms of size, layout, and

appearance. Most diverse cultural groups have low incomes and cannot afford the high rental

prices in the host countries. Therefore, the social housing programs in the host countries should

prioritize their unique needs. According to Findlay (2011, p. 2), “Failing to meet the housing

needs of cultural groups can lead to social exclusion and ultimately isolation of some group

members from the broader community.” Considering the unique housing needs of each cultural

group helps retain their identity in a foreign land and makes them as comfortable as possible.

Ethical Perspectives and Implications in Housing

Policy formulation and implementation come with ethical dilemmas that must be

addressed to achieve the goal of adequate and affordable housing. As a result, governments and

policymakers must apply existing ethical theories or principles when faced with different ethical

dilemmas. Equity and social justice in housing stem from ethics and morality, and that is, access

to affordable housing cannot be separated from morality. Denying the population adequate and

affordable is unethical and a violation of their fundamental human right (UN-HABITAT, 2024,

par. 4). In other words, it is a great social injustice for the majority of the people to live without

access to clean water, electricity, and dignified housing. Access to dignified housing should be

viewed as a fundamental human right, and any government or policymakers who do not

prioritize such an urgent need should be considered immoral. Therefore, governments should

view the housing issue from an ethical or moral perspective to ensure adequate and affordable

housing for all.

Utilitarianism and deontology are two examples of ethical theories that can be applied in

forming and implementing social housing programs. The housing crisis is a real-life problem that

may attract different ethical dilemmas. Utilitarianism is an ethical theory that focuses on the

consequences of an action when determining its morality (Buye, 2021, p. 2). In other words,

Buye 2021, p. 2) states that actions that bring the highest benefit to the majority of the people are

considered moral. For example, social housing programs that benefit most people should be

morally permissible. The majority of the population needs access to adequate and affordable

housing, and any other concern can be sacrificed to ensure that most people have affordable

housing. Deontology ethics is where actions based on duty are considered morally permissible.

This calls for governments to fulfil their duty to provide adequate and affordable housing for

their people (Buye, 2021, p. 2). Therefore, any action that helps the government achieve its duty

of providing adequate and affordable housing.

Summary

From this review, it is evident the world is currently facing a housing crisis that can only

be addressed through proactive and inclusive housing policies. More than one billion people

have no access to adequate and affordable housing and are exposed to all the risks that come

with being homeless on the street. Moreover, millions of people still face the threat of eviction

with no hope of finding permanent shelter. Homelessness presents other challenges, such as

exposure to many health risks, social unrest, and a decline in economic productivity. Being

homeless on the streets makes one lose their privacy and overall human dignity, and that is why

this issue should be a priority for governments and policymakers worldwide. Even though the

extent of the housing crisis may vary from one country to another, the reality is that most

countries continue to struggle with the housing issue. Affordability remains the greatest

challenge because some countries have many unoccupied housing units, and people cannot

afford the purchase and rental prices. The affordable housing movement has been derailed by a

lack of inclusivity in housing policies that do not prioritize housing as a fundamental human

right.

Proposed Solution

The current global housing problem is a complex issue that requires the input of all the

relevant stakeholders to come up with a sustainable solution. In some instances, global or cross-

border policies will be needed to deal with the problem because of the current global trends, such

as migration. It takes proactive planning and massive mobilization of resources to ensure

affordable housing for all. This should be the case for both developed and third-world countries.

Due to overpopulation, low-income countries face the challenge of informal settlements in urban

areas. Similarly, some of the developed countries have a housing challenge because of the high

population of immigrants that move into the country as refugees, asylum seekers, and those

looking for better economic opportunities. Therefore, all countries must find an urgent and

sustainable solution to the ever-increasing housing crisis.

Adopting hegemonic housing ethics can be the first step towards addressing the housing

problem. According to Iglesias (2007, p. 511), a country like the United States has delayed in

meeting the affordable housing objective because of its pluralist housing ethics. The five notable

housing ethics in the United States include “(1) housing as an economic good, (2) housing as

home, (3) housing as a human right, (4) housing as providing social order, and (5) housing as one

land use in a functional system” (Iglesias, 2007, p. 511). The focus on applying all five housing

ethics in addressing the housing issues in the country has not achieved the expected results. Even

though housing ethics have shaped housing law for many years, achieving the required

hegemony that can promote the affordable housing movement has been difficult. Selecting a

housing ethic that can help achieve the required hegemony in housing laws and programs would

be a good idea. According to Iglesias (2007, p. 51), “the housing as one land use in a functional

system” ethic would be a viable housing ethic in achieving the affordable housing objective.

Thus, pluralist housing ethics should be reviewed or harmonized to adopt a hegemonic housing

ethic that can support the affordable housing movement.

Housing should be considered a fundamental human right for any country that wants to

achieve sustainable development. Most governments have failed in their duty to provide

adequate and affordable shelter for their people because of their attitude towards housing. The

mistake many governments and policymakers make is viewing housing as a commercial venture

instead of a tool to meet a fundamental human right. Most public and private sector investments

in the housing sectors have been financialized, which is why more than one billion people

worldwide have no access to adequate and affordable housing. A government cannot claim to

ensure the well-being of its people without providing a basic need like dignified shelter. McRae

(2022, par. 3) argues that the finacialization of the housing sector means that housing units are

viewed as financial tools and not as tools to meet a basic human right. Only governments that

consider housing a basic human right invest in social housing programs that ensure everyone has

access to dignified shelter.

Millions of people around the world remain homeless even though there are many

housing units available for rental and buying purposes. The only challenge is affordability, which

is why governments and policymakers should prioritize affordable housing. The high buying and

rental prices make it difficult for many people to afford housing (McRae, 2022, par. 3). Also,

those who can afford the rental prices are evicted when they face economic challenges or income

loss. Unfortunately, some people are a salary away from being homeless. This would not be the

case if there were social housing units that low-income people could afford. Many of the

homeless people on the streets are there because they lost a regular source of income, which

caused their eviction from their rental houses. For others, loss of income made it difficult to pay

their mortgages, leading to eviction. According to McRae (2022, par. 3), the emphasis on making

profits instead of meeting the basic human right of dignified shelter remains the main undoing of

most governments. Therefore, any sensible government should provide affordable housing for its

people in collaboration with the private sector and the non-profit sector to end the problem of

homelessness.

Proactive housing policies that consider the possibility of disasters or pandemics should

be adopted to avoid worsening the situation in the event of a pandemic. The recent COVID-19

pandemic is an example of how a pandemic can exacerbate an existing crisis. The call for

affordable housing is also based on the need to protect populations during pandemics or natural

disasters. During a pandemic, Rogers and Power (2021, p. 215) believe that “…the house and

home are both key actors and spaces through which to implement change.” Most prevention

measures during the COVID-19 pandemic involved lockdowns and quarantines that required

safe and adequate housing. Therefore, homeless people were the most affected by the pandemic

because they lacked private spaces for self-isolation. For countries like the United States and the

UK, there was a significant increase in housing prices because of the pandemic, leading to a

major housing crisis. Rogers and Power (2021, p. 215) opine that there is a need for a

comprehensive housing solution where the analysis of the housing system is not based on race,

gender, class, and socioeconomic perspectives that can promote exclusion. It is important to have

a unified plan that addresses the housing needs of all members of the population.

Failure to address the core housing issues has derailed the dream of affordable housing in

many countries. A study by UN-HABITAT (2024, par. 2) revealed that “Approximately 2.8

billion people worldwide face housing inadequacies, from homelessness to substandard and

unaffordable homes.” It is important to focus on achieving sustainable by dealing with the global

housing crisis. Apart from cultural and ethical considerations, addressing the housing problem

requires serious mobilization of resources to invest in social housing programs. Therefore, the

government alone cannot achieve this dream by working with the private sector and non-profit

organizations. It will take a collective effort to achieve the affordable housing dream. For

example, governments can offer the necessary subsidies, tax exemption, and even land private

companies in the implementation of the social housing programs.

The role of the private sector and non-profit organizations cannot be ignored when it

comes to achieving adequate and affordable housing. Governments that have made great strides

in providing affordable housing have collaborate with the private sector in the realization of the

dream. The housing gap in some countries is massive and it will take a deliberate efforts by

governments to work with the private sector to fill the gap. The continued perception of housing

as a commodity will continue to be a hindrance to the affordable housing movement (UN-

HABITAT, 2024, par. 2). Low-income families struggle to access dignified shelter because

housing is still viewed as a commodity. Social housing programs should target low-income

families that have faced housing inequalities for many years. Equal and fair distribution of

affordable housing units is also critical in addressing the housing challenge. The problem of

corruption and nepotism has affected many social housing initiatives because deserving

candidates end up being locked out of the programs. Therefore, the distribution of affordable

housing units should be characterized by fairness and transparency.

The priorities and considerations of policymakers in the housing sector determine

whether the affordable housing dream will be achieved or not. The guiding principles of housing

polices in should be affordability and adequacy to address the current crisis. Each country has its

unique housing needs that should also inform housing policies or plans. Cultural diversity is a

major factor that urban planners should consider during policy formulation to avoid exclusion

and provide migrant with housing choices. It is insensitive to design housing units without

considering the unique housing needs of the existing cultural groups. According to UN-

HABITAT (2024, par. 11), governments should demonstrate commitment to help their people

have a place to call home and end the indignity that comes with homelessness. Housing is a

building block to optimal growth and property.

There are many ways through which governments can help the private sector to

effectively contribute to achieving affording housing. Ivory and Colton (2020, par. 3) argue that

“If the nation, and state and local communities, are going to make significant progress in

addressing housing affordability, one of the key policy levers is to reduce or remove regulatory

barriers to building new homes and apartments." The regulatory barriers discourage investors

from investing in the housing sector, leading to a shortage of housing units. Also, punitive tax

regimes contribute to the high housing prices that lead to affordability challenges. Housing

affordability cannot be achieved without better regularity policies. The government can also

facilitate housing affordability by promoting a creative financial environment that allows "More

people to qualify for a mortgage and buy a home, and to provide more affordable rental housing”

(Ivory & Colton, 2020, par. 5). From a policy perspective, there is more the government can do

ensure that its people have access to dignified housing.

It is possible for governments to assist existing renters to achieve ownership by helping

them improve their credit score or financial position. According to Ivory and Colton (2020, par.

6), “Renters face a number of financial and other barriers, especially minorities and those with

lower incomes, and overcoming these barriers is one of the essential paths to housing

affordability.” Developing personalized payment solution that meets the financial needs of each

renter can help boost their changes of achieving ownership. This is critical in avoiding the

possible costs of eviction or delinquency. It is also possible to help renters qualify for mortgage

by making their rent payment history a factor in assigning their credit score. Real-time rent

payment data should qualify one for a mortgage by enhancing their creditworthiness.

Greater housing opportunities can still be achieved through effective utilization of

existing land and housing. It is the desire of most people to live intentional life, and this can be

achieved by comfortable community homes that can help them meet this desire. For example,

students have unique housing needs compared to senior citizens and that is why it is possible for

developers to create community needs for different demographics (Ivory & Colton, 2020, par. 7).

Such communities should come with added benefits that make a particular group as a

comfortable as possible. Each community has its strengths that developers should consider in

their community housing plans. For example, “ROC USA targets lower-income people who live

in mobile home parks and helps the residents with financing and technical assistance to purchase

and then successfully manage their own manufactured home park as a co-op or Resident Owned

Community (ROC)” (Ivory & Colton, 2020, par. 8). Thus, considering the unique needs and

strengths of each community contributes to the comfortable and safe housing for everyone.

Conclusion

An in-depth analysis of the global housing issue reveals that access to safe, adequate, and

affordable housing is a fundamental human right that should be prioritized by governments and

policymakers through hegemonic housing ethics, investment in social housing programs that

consider the unique housing needs of diverse cultural groups, and removing regulatory and

financing barriers in the housing sector. The sad reality that more than one billion people around

the world have housing challenges because of possible flaws in existing housing policies and

failure by governments to create the right environment that promotes the affordable housing

plan. Also, the commercialization of the housing sector, where there is more focus on profits

than meeting basic human rights, contributes to the current housing crisis. Therefore, it is

important to approach the housing issue from a local and global perspective to meet the

increasing housing needs in the era of globalization. Creating housing options for diverse cultural

groups in foreign countries helps promote inclusivity in housing. Adequate and affordable

housing are key driving factors to sustainable development and social equity, and that is why it

should be a priority for any government that cares for its people. Finally, dignified housing can

also be achieved through cross-border solutions and policies.

References

Bayar, M. (2016). The Impact of Cultural Diversity on the German Housing Market, 1–36.

https://www.econstor.eu/bitstream/10419/148311/1/873685741.pdf

Buye, R. (2021). Ethical issues in Uganda’s affordable housing. Applied Ethics Oxford

Bibliographies, 1-12.

https://www.researchgate.net/publication/353347344_Ethical_issues_in_Uganda's_afford

able_housing

Coupe, T. (2020). How global is the affordable housing crisis? International Journal of Housing

Markets and Analysis, 429–445. https://doi.org/10.1108/ijhma-04-2020-0040

Findlay, M. (2011). Social housing for cultural diversity. Australian Planner, 48(1), 2-11.

https://doi.org/10.1080/07293682.2011.530584

Iglesias, T. (2007). Our Pluralist Housing Ethics and the Struggle for Affordability. Wake Forest

Law Review, 41, 511-595.

https://www.researchgate.net/publication/49250698_Our_Pluralist_Housing_Ethics_and_

the_Struggle_for_Affordability

Ivory, A. & Colton, K. W. (2020). Innovative Solutions for the Housing Crisis. Stanford Social

Innovation Review.

https://ssir.org/articles/entry/innovative_solutions_for_the_housing_crisis

McRae, K. (2022, October 25). The Global Housing Crisis: A Crisis Unlike Any Other. Urbanet.

https://www.urbanet.info/the-global-housing-crisis/

Rogers, D., & Power, E. R. (2021). The global pandemic is accelerating housing crises.

International Journal of Housing Policy, 21(3), 315–320.

https://doi.org/10.1080/19491247.2021.1957564

UN-HABITAT. (2024). The housing crisis is a symptom of global policy failure | UN-Habitat.

Unhabitat.org. https://unhabitat.org/news/16-jan-2024/the-housing-crisis-is-a-symptom-

of-global-policy failure#:~:text=Approximately%202.8%20billion%20people

%20worldwide

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