State of the housing deficit across the Asia Pacific and the solutions needed

State of the housing deficit across the Asia Pacific and the solutions needed

The Asia-Pacific region is home to some of the world’s largest and most populous countries. But the region is facing rapid urbanization and population growth. 

According to the United Nations, the Asia-Pacific region has the largest housing deficit in the world, with an estimated 500 million people living in slums and informal settlements.

A complex housing crisis

The state of the housing stock in the region is dire. In many countries, most of the population lives in substandard housing, lacking basic amenities such as running water and sanitation. 

The lack of affordable housing is particularly acute in urban areas, where the demand far outstrips the supply. The result is that many people are forced to live in overcrowded and unsafe conditions, with little access to healthcare, education, and other essential services such as water and sanitation.

Despite these challenges, some successful national policies hope to boost the provision of affordable housing. 

Climate change adaptation for low-income housing and informal settlements

Successful policies providing affordable housing: from India to South Korea

The government has launched several initiatives in India, including the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to all by 2022. 

Under the scheme, the government provides financial assistance to eligible beneficiaries to help them construct or purchase a house. The PMAY has successfully provided housing to millions of people, particularly in rural areas.

Similarly, in Vietnam, the government has implemented several policies to promote affordable housing. 

One such policy is the “social housing” program, which provides subsidized housing to low-income families. The government also offers tax incentives to developers who build affordable housing projects. As a result, there has been a significant increase in the supply of affordable housing in Vietnam in recent years.

Successful slum upgrading or rehabilitation programs have also positively impacted communities across the region. 

In Nepal, for example, the “Urban Development and Building Construction Project” aims to upgrade informal settlements and provide essential services such as water, sanitation, and electricity. The program has successfully improved living conditions for thousands of people and created jobs and economic opportunities for local communities.

South Korea launched the “New Town Development” and hopes to offer affordable housing to low-income families and revitalize urban areas. The program involves the construction of new housing units, as well as the renovation of existing buildings. The initiative has been successful in creating vibrant and sustainable communities and has also helped to reduce social inequality.

The”Baht for a Home” program in Thailand provides financial assistance to low-income families to help them purchase a house. The program has successfully provided affordable homes to thousands of families and helped stimulate the economy by creating jobs in the construction sector.

Cambodia’s “Land Allocation for Social and Economic Development” program provides land and housing to low-income families. The initiative has successfully improved living conditions for thousands of people and has helped reduce poverty and inequality.

The need to scale up programs and interventions

However, the overall progress toward providing affordable housing in the Asia-Pacific region in the last 10-15 years has been slow. Despite the successful initiatives mentioned above, the housing deficit remains a significant challenge. 

In Indonesia and the Philippines, for example, the number of people living in slums and informal settlements has actually increased in recent years.

The Indonesian government has launched the “One Million Houses” program, but the implementation has been slow. Only a small percentage of the target being achieved so far.

The lack of affordable land and access to finance

One major challenge in addressing the Asia-Pacific region’s housing deficit is the lack of affordable land. 

In many urban areas, land prices are prohibitively high. It makes it difficult for developers to build affordable housing. In addition, there is a need for more political will to address the issue, as housing policies are often seen as politically sensitive and challenging to implement.

Another challenge is the limited access to finance for low-income families. Many people living in informal settlements and slums cannot utilize formal financial institutions. Therefore, they cannot secure loans to build or purchase a house. This limits their ability to improve their living conditions and contributes to the cycle of poverty.

Bringing all actors together to build a positive impact for everyone

Despite these challenges, there is hope that the housing deficit can be addressed with greater investment and innovation and that all people can access safe, decent, and affordable housing. 

Governments and policymakers must work together to develop innovative solutions to the housing crisis and ensure that everyone has access to basic services such as water, sanitation, and healthcare.

In conclusion, the housing deficit in the Asia-Pacific region is a major challenge that requires urgent attention. While there have been some successful national policies and slum upgrading programs that have had a positive impact on communities across the region, progress toward providing affordable housing has been slow overall. 

However, with greater investment and innovation, there is hope that the housing deficit can be addressed and everyone can access safe, decent, and affordable housing.


  1. United Nations Human Settlements Programme. (2016). Urbanization and Development: Emerging Futures. Retrieved from
  2. Pradhan Mantri Awas Yojana. (n.d.). Ministry of Housing and Urban Affairs. Retrieved from
  3. Vietnam Ministry of Construction. (n.d.). Social Housing Development in Vietnam. Retrieved from
  4. Asian Development Bank. (2018). Cambodia: Land Allocation for Social and Economic Development Project. Retrieved from
  5. Ministry of Land, Infrastructure and Transport. (n.d.). New Town Development. Retrieved from
  6. World Bank. (2019). Indonesia: One Million Houses Program. Retrieved from
  7. United Nations Economic and Social Commission for Asia and the Pacific. (2017). Housing Finance in Asia. Retrieved from

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