BAKU, Azerbaijan, May 19. The United Nations
Human Settlements Programme (UN-Habitat) has presented the "World
Cities Report 2026," Trend reports.
The report highlights the key challenges and solutions related
to the global housing crisis, urbanization, and affordable housing
provision.
According to the new UN report, approximately 40% of the world's
population, or 3 billion people, face an affordable housing crisis,
resulting in unaffordable prices, housing shortages, low-quality
living conditions, and limited access to basic municipal urban
services such as water and sanitation.
The report notes that cities expect to accommodate an additional
2 billion residents by 2050. This will place an extra burden on
housing systems that already confront growing challenges due to
rapid urbanization, rising land prices, deepening social
inequality, and the impacts of climate change.
At the same time, climate-related hazards are projected to
render 167 million residential homes uninhabitable by 2040. The
report notes that natural disasters resulted in $280 billion in
damages in 2023, with a large share of these losses remaining
uninsured.
According to statistical data as of the end of 2024, the number
of forcibly displaced people reached 123.2 million, which is double
the figure from the previous decade.
Over the last 20 years, an additional 64 million people faced
displacement from informal settlements. The majority of forcibly
displaced persons turn to cities, entering refugee or internally
displaced person (IDP) camps, and often have to settle in hazardous
or substandard living conditions where they face additional risks
of displacement. In developing countries, informal housing accounts
for approximately 80% of residential civil construction.
According to conducted research, the shortage of decent and
affordable housing increased by 30% in just over a decade,
surpassing 268 million units, while 1.1 billion people still live
in informal settlements.
In many regions, housing prices grew faster than incomes;
globally, the price-to-income ratio rose from 9.3 in 2010 to 11.2
in 2023, while in Central and Southern Asia, this indicator reached
16.8. In 2023, only 25.5% of individuals worldwide applying for a
housing loan successfully secured credit. In parts of Sub-Saharan
Africa, where housing mortgage markets remain in the initial stages
of development, this indicator stood at a mere 1%.
Globally, 44% of families spend more than 30% of their income on
housing expenses. The unaffordability of rental housing is most
visible in Sub-Saharan Africa, where 55% of tenants find themselves
under a heavy financial burden. Internal financial mechanisms at
national, regional, and local governance levels must target demand-
and supply-oriented subsidy mechanisms more efficiently to bridge
these affordability gaps.
The document released today by UN-Habitat, titled "World Cities
Report 2026: The Global Housing Crisis – Pathways to Action,"
emphasizes that the global housing crisis bears a multidimensional
character driven by structural factors. The report shows that the
manifestations of the crisis deepen further as a result of
demographic shifts, environmental pressures, and changing economic
conditions. This process worsens numerous challenges, including
inequality, poverty, and vulnerability to climate shocks.
However, the "World Cities Report 2026" also emphasizes that the
housing crisis can undergo resolution. The report notes that
treating informal settlements as an unresolvable problem is no
longer correct, since these forms of housing have become widespread
across many cities. It is necessary to eliminate these instances,
abandon containment policies, and instead evaluate informal housing
as a potential vehicle for improving livelihoods and resolving the
housing crisis.
The report simultaneously brings to the forefront the importance
of expanding domestic financial mechanisms at national, regional,
and local government levels, as well as more effectively targeting
supply-side and demand-side subsidy structures to overcome
affordability gaps.
In this regard, the report calls for a significant increase in
public investments directed toward social and affordable housing
provision, while simultaneously stimulating private sector
investments that boost supply, particularly in the affordable
housing segment.
Community participation and co-execution mechanisms, with a
special focus on the inclusivity of marginalized groups, receive
evaluation as essential elements of decent housing provision, both
during the policy formulation phase and within projects designed
and executed alongside residents. This approach envisages the
active involvement of communities in this process during both the
pre-settlement and post-settlement phases.
"There is a need for a new social contract on decent and
affordable housing provision, meaning a sense of shared
responsibility must form among governments, the private sector, and
communities to attract investment and align the socio-economic
functions of housing provision," Anaclaudia Rossbach, Executive
Director of UN-Habitat, stated.
The publication of the report coincides with the 13th session of
the World Urban Forum (WUF13), a leading global conference on
sustainable urbanization that commenced in Baku on May 17.
The third day of the 13th session of the World Urban Forum
(WUF13) is underway in Baku.
On the first day, a ministerial meeting dedicated to the New
Urban Agenda, a roundtable of ministers, assemblies of women and
civil society, business sessions, and discussions on urban
well-being were held. A ceremony for raising the flags of the
United Nations and Azerbaijan also took place within the framework
of the forum.
The second day of the forum drew attention with the first-ever
Leaders Summit. High-level discussions on the global housing
crisis, urbanization policy, and urban resilience were held that
day. At the same time, the Mexico City pavilion was inaugurated
within the framework of WUF13. The pavilion was presented as an
important platform for expanding cooperation with the Latin
American region and preparing for WUF14.
WUF13, which has attracted more than 40,000 registered
participants from 182 countries, will continue until May 22. Held
under the theme “Housing the world: Safe and resilient cities and
communities,” the forum brings together governments, international
organizations, experts, and representatives of civil society to
strengthen global cooperation in the field of sustainable urban
development.
