SHELTER STRATEGIES FOR THE URBAN POOR IN DEVELOPING COUNTRIES

TLDR

Rapid urban growth in many developing‑country cities strains shelter delivery systems, and governments’ policies often fail because of limited understanding of housing market dynamics. This paper reviews recent research on housing market behavior in developing countries, covering demand, investment patterns, financing by low‑income households, and willingness to pay for secure tenure. The authors examine common housing policies—including public housing, sites‑and‑services projects, slum clearance versus upgrading, rent controls, finance and infrastructure supply, and building codes—to assess their impact on market behavior.

Abstract

Rapid growth in many developing-country cities is straining the capacity of their shelter delivery systems. Governments have chosen a variety of implicit and explicit policies to ameliorate these strains. However, these policies are not always consistent with their objectives, often because of a lack of knowledge of how housing markets actually work and how policies affect and are constrained by market behavior. This paper reviews recent research on housing market behavior in developing countries, including the demand for housing and the pattern of housing investment across countries, the financing of housing by low-income households, and the willingness to pay for secure tenure. Common housing policies are then examined, including public housing, sites and services projects, and slum clearance versus upgrading. Rent controls, measures to improve the supply of finance and infrastructure, and building codes and standards are also discussed.