UN-Habitat Says 3 Billion People Face Inadequate Housing Worldwide
Nearly 3 billion people—about 40% of the world’s population—are affected by inadequate housing, according to a new UN-Habitat report released May 19 during the World Urban Forum in Baku, Azerbaijan.
The World Cities Report 2026: The Global Housing Crisis: Pathways to Action says the global shortage exceeded 268 million housing units in 2023. The crisis includes not only a lack of homes, but also high housing costs, poor-quality conditions and limited access to basic services.
UN-Habitat is calling for expanded public and private investment in housing that is affordable, well located and resilient to climate risks. The report frames housing as a foundation for health, employment, public services, climate resilience and progress toward the United Nations’ Sustainable Development Goals.
A crisis shaped by cost, supply and displacement
The report identifies five connected dimensions of the global housing crisis: affordability, displacement, informality, sustainability and liveability. It links housing insecurity to rising prices, insufficient supply, displacement and inadequate efforts to improve existing neighborhoods.
About 1.16 billion people are living in informal settlements, according to the report’s highlighted findings. These communities can face gaps in basic services and infrastructure, while residents may have less secure access to land and housing.
Housing costs have also risen relative to incomes. The global price-to-income ratio increased from 9.3 in 2010 to 11.2 in 2023. UN-Habitat says 44% of households worldwide spend more than 30% of their income on housing, a level that leaves less money for other necessities.
The figures describe inadequate housing, not 3 billion people who are homeless. They cover a broad range of conditions affecting whether people can obtain housing that is affordable, safe, serviced and suitable for daily life.
Climate risks add pressure
Climate change is expected to deepen the housing challenge. UN-Habitat projects that climate-related hazards could destroy 167 million homes by 2040. That figure is a projection of potential future losses, not a count of homes already destroyed.
The report therefore calls for climate-resilient and low-carbon construction alongside efforts to expand housing supply. It also emphasizes upgrading existing housing and neighborhoods rather than treating the crisis solely as a need to build new units.
For cities, the report’s approach connects housing policy with land use, transportation and infrastructure decisions. Housing that is affordable but far from jobs, services or reliable transport can leave residents facing other forms of insecurity, while poorly planned expansion can increase exposure to climate hazards.
A multitrillion-dollar financing gap
UN-Habitat estimates that providing adequate and affordable housing will require $3 trillion to $4 trillion in annual global financing through 2030, in addition to the money needed to maintain and upgrade existing housing.
The estimate is a measure of financing needs, not a commitment already made by governments or investors. Meeting it would require action across housing finance, land governance, planning and infrastructure, as well as stronger involvement from communities.
The report recommends expanding social and affordable housing and rental options, improving land governance, integrating housing and infrastructure policy, reforming planning systems, and increasing community participation. It also urges wider use of climate-resilient, low-carbon construction.
The findings were presented at the thirteenth World Urban Forum, which is being held in Baku from May 17 through May 22, 2026. The forum’s official summary describes affordability, displacement, informality, resilience and liveability as interrelated problems requiring coordinated action rather than isolated housing programs.
UN-Habitat’s central warning is that the housing crisis is both immediate and structural: millions of households face unaffordable or inadequate conditions now, while population growth, rising costs and climate hazards could make the shortage more difficult to address through the end of the decade.
Sources
- Nearly half of humanity caught in a global housing crisis, UN-Habitat
- World Cities Report 2026: The Global Housing Crisis: Pathways to Action, UN-Habitat
- World Cities Report 2026, World Urban Forum / UN-Habitat
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