Solving the World’s Affordable Housing Challenge
The demand for affordable housing isn’t just limited to the United States. An estimated 330 million households around the world had to pay more than 30 percent of income on a standard housing unit in 2014, according to the McKinsey Global Institute (MGI). By 2025 that number of households is expected to increase to 440 million.
This “global affordable housing gap” (the difference between what people can afford and market prices of adequate housing) would affect 1 in 3 urban dwellers, or roughly 1.6 billion people, according to McKinsey Global Institute’s report.
“In one hour, there are 1,500 families migrating to cities who are looking for a new home,” Jan Mischke, a senior fellow at the McKinsey Global Institute and a co-author of the report, told Housing Industry Forum (also published by Fannie Mae).
“Within one month, 400,000 newcomers will not be able to pay the market price for housing,” adds Mischke.