The Global Favela in the UN Report

A new UN-Habitat report indicates a significant decline in global housing affordability over the past two decades, with prices rising much faster than incomes. This has led to increased housing shortages, overcrowded conditions, and a growing slum population across most regions. The report suggests that globalization and market liberalization have contributed to this crisis, concentrating resources and increasing dependency.

• Housing has become less affordable globally, with the price-to-household-income ratio increasing significantly.
• Rental housing costs are straining households, with a large percentage spending over 30% of their income on rent, particularly in sub-Saharan Africa and Europe/North America.
• The global housing deficit has grown, especially in sub-Saharan Africa and the Euro-Atlantic area.
• The number of people living in slums and informal settlements is increasing worldwide, with notable rises in countries like Poland, Ireland, and Canada.
• Overcrowding in households is also on the rise in many European and North American countries.
• The report attributes the crisis to sustained demographic growth and restrictive regulations, though it also points to the effects of globalization and market liberalization.
• Examples from China and Chile illustrate the severe impact of market liberalization on housing affordability and the rise of informal settlements.
• The decline in housing affordability is linked to declining birth rates, social isolation, and increased poverty and violence in overcrowded areas.
• The article suggests that purposeful state intervention is necessary to ensure housing affordability, contrasting outcomes in Middle Eastern states with those in countries with low social well-being.