Global Housing Crisis: Urgent Need for Action to Address Homelessness

Itanagar, India Jul 14, 2026 ALN: Global Housing Crisis: Urgent Need for Action to Address Homelessness

The recently released World Cities Report 2026 by the UN-Habitat and World Urban Forum highlights a pressing global housing crisis, with 40% of the world's population living in unsatisfactory conditions, lacking access to essential services like water and sanitation. The report indicates that housing prices have surged at a pace that outstrips income growth, with the average price-to-income ratio rising from 9.3 in 2010 to 11.2 globally, and even higher to 16.8 in Central and South Asia by 2023. This alarming trend underscores the urgent need for comprehensive strategies to address housing shortages and homelessness, which have far-reaching implications for social stability and economic development.

The global housing crisis is not just an isolated issue; it reflects broader socio-economic challenges, including income inequality, inadequate urban planning, and the effects of climate change. As urban populations swell, cities face increasing pressure to provide adequate housing, services, and infrastructure. The interplay between rising housing costs and stagnant wages creates a precarious situation for millions, pushing many into slum conditions or homelessness.

In India, the situation is particularly dire. An estimate based on the UN’s Degree of Urbanisation framework suggests that nearly 84% of the Indian population will reside in urban areas by 2025, a stark contrast to the government's estimate of 36%. This discrepancy arises because the current urbanisation framework categorizes urban areas into Census towns and Statutory towns, failing to capture the rapid urban growth occurring in unrecognized settlements. Such misclassification complicates efforts to plan for housing and infrastructure needs, ultimately exacerbating the crisis.

A recent study by the National Institute of Urban Affairs (NIUA) has proposed a new classification framework called Functional Urban Settlements to better reflect the evolving urban landscape. This framework aims to address the significant gaps between the geography of urbanisation and existing governance structures, as many areas exhibiting urban characteristics remain classified as rural. By adopting a more accurate classification system, policymakers can better allocate resources and implement effective housing strategies.

The Indian government has recognized the urgency of the situation, announcing financial aid for City Economic Regions (CERs) in the latest budget. These regions extend beyond strict administrative borders and aim to integrate supply chains and labor markets, serving as economic hubs for surrounding towns. This approach seeks to stimulate economic growth and improve living conditions, but it also requires careful planning to ensure that housing needs are met alongside economic development.

As of 2021, approximately 35% of India’s population lived in urban areas, a figure projected to reach 50% by 2050. This rapid urbanisation is expected to significantly increase the demand for urban housing, with the urban population estimated to grow from 50 crore in 2021 to 85 crore by 2050. The dynamics of the real estate sector will play a crucial role in shaping this demand. However, the availability of affordable housing is declining. In India's eight largest metropolises, the proportion of new builds classified as affordable housing has plummeted from 52% in 2018 to just 17% in 2025. The Economic Survey indicates an urban affordable housing deficit of 9.4 million units, projected to rise to nearly 20 million by 2030. Unofficial estimates suggest that the current deficit may be around 15 million in urban areas and could reach 22-23 million in rural and backward regions.

Slums have become a defining feature of urbanisation in India, housing millions in extreme poverty and inadequate living conditions. Rapid urbanisation, particularly in developing countries, has exacerbated challenges related to sanitation, water supply, and housing. Effective urban planning is essential to improve the living standards of slum dwellers by ensuring the development of sustainable civic amenities. The lack of basic infrastructure in slums often leads to public health crises, further entrenching poverty and limiting economic opportunities for residents.

The rise of slums is closely linked to the issue of homelessness, which poses a significant challenge in India. Government initiatives like the Pradhan Mantri Awas Yojana have attempted to address housing shortages, but persistent issues such as financing and land constraints limit their effectiveness. Homelessness is associated with various social problems, including sanitation issues, pollution, and vulnerability to crime. Official reports indicate that there are 13 homeless individuals per 10,000 people in India, but this figure more than doubles when considering unauthorized colonies and squatter settlements. The invisibility of many homeless individuals complicates efforts to provide assistance and support.

The Census first recorded data on homelessness in 2001, counting 1.94 million homeless individuals. By the 2011 Census, this number had decreased to 1.82 million, with 938,384 living in urban areas. However, independent organizations estimate the actual number to be around 2.3 million or more, which could rise further if makeshift housing is included. These figures highlight the disconnect between official statistics and the realities faced by many, underscoring the need for more accurate data collection methods and a comprehensive understanding of homelessness.

Current conceptual frameworks for understanding homelessness often fail to capture its socio-economic dimensions. The Ministry of Housing and Urban Affairs defines homelessness as a lack of a permanent residence, encompassing various living situations, including temporary shelters and dilapidated dwellings. Major urban centers like Mumbai and Delhi are reported to have significant homeless populations, but activists argue that the actual numbers are much higher. This discrepancy points to the urgent need for more inclusive policies that consider the diverse experiences of those affected by homelessness.

Natural disasters such as floods and cyclones further exacerbate homelessness, leading to the destruction of homes and inadequate rehabilitation efforts. Many individuals are forced to seek shelter in makeshift houses on government land. Addressing homelessness requires adequate funding and land availability. The intersection of climate change and urbanization poses additional challenges, as extreme weather events become more frequent and severe, displacing vulnerable populations and straining already limited resources.

Government housing schemes have shown some positive effects, particularly in rural and semi-urban areas. However, corruption at the grassroots level undermines their impact. For instance, in West Bengal, funds intended for beneficiaries often end up in the hands of ruling party cadres. This corruption not only diverts necessary resources but also erodes public trust in government initiatives, making it even more challenging to address the housing crisis effectively.

Last year, the Niti Awas report identified key issues but failed to propose concrete solutions for affordable housing and homelessness. In the coming years, it is crucial for both central and state governments to raise funds and engage the private sector in housing initiatives. Business entities should be encouraged to invest in housing projects for the homeless in areas where they operate. Public-private partnerships can play a critical role in addressing housing shortages, leveraging the strengths of both sectors to create sustainable solutions.

From a human development perspective, India must make sincere efforts to enhance and expand shelter programs for marginalized communities in a timely manner. Providing decent housing for the lower strata of society is an urgent need, yet successive governments have not prioritized this issue adequately. If initiatives like Swachh Bharat are to succeed in urban areas, addressing homelessness must become a central focus of government policy. The implications of failing to address these issues extend beyond individual hardship; they threaten social cohesion and economic stability, highlighting the need for immediate and sustained action.