How to make housing affordable

Section 1: Top 35 Countries with Affordable Housing

Data Source: Gallup World Poll and related housing surveys (2023 data). Rankings reflect the percentage of citizens reporting their housing as affordable relative to their income.

Data Year: 2023

Status of the United States:

Data Year: 2022–2023. Sources: Eurostat EU-SILC 2023 (European countries); OECD Affordable Housing Database 2022–2023; World Bank / United Nations (UN)-Habitat estimates (non-OECD nations). Metric: housing costs (rent or mortgage + utilities) as a percent of median household disposable income. Countries with population over 5 million only.

The United States ranks 35th on this list, with households spending approximately 33% of their income on housing — the highest among the 35 countries listed. This places the U.S. at the bottom of the ranking, meaning it has the least affordable housing relative to income among all countries studied. The high U.S. ranking is driven by a combination of factors: restrictive single-family-only zoning in most cities, a chronic shortage of publicly subsidized housing stock, high land costs in metropolitan areas, dependence on expensive traditional lumber-frame construction, high financing costs compared to peer nations, and the near-absence of a social or cooperative housing sector. U.S. housing cost as a percent of household income for the past three years: 2021: 31%; 2022: 32%; 2023: 33% (Sources: U.S. Census Bureau American Housing Survey and Bureau of Labor Statistics Consumer Expenditure Survey — https://www.bls.gov/cex/).

References for Section 1 Data:

https://www.gallup.com/analytics/349487/gallup-global-research.aspxGallup World Poll:

https://nlihc.org/gapNational Low Income Housing Coalition:

https://www.jchs.harvard.eduHarvard Joint Center for Housing Studies:

https://www.oecd.org/housing/data/affordable-housing-database/Organisation for Economic Co-operation and Development (OECD) Affordable Housing Database:

Section 2: What Other Countries Have Done to Make Housing Affordable

The following eight top-rated countries have implemented a range of policies, programs, and government and private actions that have successfully reduced housing costs for their citizens. Below is a detailed description of what each country has done.

Singapore

Singapore's Housing and Development Board (HDB) is responsible for the success of one of the world's most comprehensive public housing programs. More than 80% of Singaporeans live in HDB flats, which are sold at subsidized prices. The government acquired large tracts of land early in the country's development, enabling it to control housing supply and pricing. Key initiatives include:

Policy and Legislative Actions:

The Housing and Development Act empowers the HDB to plan, build, and manage public housing estates. Build-To-Order (BTO) schemes allow citizens to apply for new flats at subsidized prices, typically 20-30% below market value. The government offers substantial grants (up to SGD 80,000) to first-time buyers, single parents, and lower-income families.

Labor and Construction Costs:

Singapore employs a large foreign worker program specifically for the construction industry, managed by the Ministry of Manpower. The use of Integrated Building Information Modeling (BIM) across all HDB projects reduces design and construction errors, lowering costs by an estimated 10-15%. Prefabricated Prefinished Volumetric Construction (PPVC) technology produces entire room modules in factories, reducing on-site labor by up to 30%.

Material Costs:

Singapore's Housing and Development Board negotiates bulk purchases of construction materials through long-term contracts, reducing material costs. The government's Green Mark Scheme incentivizes the use of sustainable and cost-effective building materials.

https://www.hdb.gov.sghttps://www.mnd.gov.sgKey Organizations: Housing and Development Board (HDB): ; Ministry of National Development:

Suomi (Finland)

Suomi has been recognized globally for its Housing First policy, which has virtually eliminated chronic homelessness. The country's approach combines social housing subsidies with strong tenant protections and urban planning policies that promote mixed-income neighborhoods.

Policy and Legislative Actions:

The Act on the Right-of-Occupancy Housing (Asumisoikeuslaki) provides residents the right to occupy housing by paying 15% of the property's value as a charge, with the remainder subsidized.

Housing Allowance (asumistuki) subsidizes rent for low-income residents.

Labor Costs:

Suomi's construction sector benefits from a highly skilled workforce with strong vocational training programs. Prefabrication and modular construction are widely used. The Construction Industry Employers' Association (Rakennusteollisuus RT) coordinates industry standards that reduce redundancy and increase efficiency.

Finance Costs:

The ARAVA loan system provides state-subsidized loans for social housing construction through the Housing Finance and Development Centre of Suomi (ARA).

ARA provides interest subsidy loans for the construction of rental and right-of-occupancy homes at interest rates of 1-3%, significantly below market rates.

The Kela housing allowance program reduces the effective housing cost burden for low-income households.

Building Methods:

Wood-frame construction using Finnish timber is widely employed, reducing material costs. Cross-laminated timber (CLT) technology is used in multi-story residential buildings, reducing construction time by 20-30%. Energy-efficient design standards reduce long-term operating costs.

Key Organizations:

https://ara.fi/en-USARA (Housing Finance and Development Centre of Suomi): ;

https://ym.fi/en/frontpageMinistry of the Environment:

Norge (Norway)

Norge provides a strong safety net for housing through a combination of government-subsidized loans, housing allowances, and robust social housing programs operated through municipalities.

The Norge State Housing Bank (Husbanken) is the cornerstone of national housing policy.

Policy and Legislative Actions:

The Housing Act (Husleieloven) provides strong tenant protections, limiting rent increases and requiring adequate notice periods.

The Planning and Building Act (Plan- og bygningsloven) streamlines building permits and encourages higher-density development near transit hubs.

Municipal housing companies (kommunale boligselskaper) provide affordable rental housing to low-income households.

Finance Costs:

The Norge State Housing Bank (Husbanken) provides subsidized mortgages at below-market interest rates and grants to first-time homebuyers, low-income families, and municipalities for social housing construction.

The Bostotte (Housing Benefit) program provides rental subsidies to low-income households.

Labor and Material Costs:

Norge's construction industry has adopted extensive use of prefabricated wood-frame systems.

Building Information Modeling (BIM) is mandatory on all public projects. T

he Norge Building Authorities (Direktoratet for byggkvalitet, DiBK) sets standards that reduce regulatory compliance costs.

Key Organizations:

https://www.husbanken.no/english/Husbanken (State Housing Bank): ;

https://dibk.noDiBK:

Sverige (Sweden)

Sverige has a long tradition of publicly managed housing through municipal housing companies known as allmanna bostadsforetag.

These non-profit companies are the cornerstone of Sverige's social housing model, which provides affordable rental housing to all income levels.

Policy and Legislative Actions:

The Act on Public Housing Companies (Lag om allmannyttiga kommunala bostadsaktiebolag) requires that municipal housing companies operate on a non-profit basis, with rents set by collective bargaining between tenant unions and housing companies.

The Rent Negotiation Act (Hyresforhandlingslagen) provides a stable system for rent-setting that prevents speculative increases. Sverige also has a Right of First Refusal (bostadsratt) cooperative ownership model that reduces the cost of homeownership.

Finance and Construction Costs:

The Sverige National Board of Housing, Building and Planning (Boverket) provides investment subsidies for the construction of affordable rental housing.

Sverige has invested heavily in industrialized housing production, with companies like Skanska and NCC developing standardized modular construction systems that can reduce costs by 15-25%.

The BoKlok project (a joint venture between IKEA and Skanska) produces affordable housing units through standardized, factory-produced components.

Key Organizations:

https://www.boverket.se/en/start/Boverket: ;

https://www.sabo.seSABO (Sverige Association of Municipal Housing Companies):

Danmark (Denmark)

Danmark's affordable housing system is centered on non-profit housing associations (almene boliger) that own and manage approximately 20% of the total housing stock. These associations receive government subsidies and operate under strict cost controls.

Policy and Legislative Actions:

The Social Housing Act (Almenboligloven) governs non-profit housing associations, requiring democratic tenant governance, cost-based rent setting, and restrictions on profit distribution. The Act mandates that at least 25% of housing in new urban development areas must be affordable social housing.

The Building Renovation Fund provides grants and loans for energy efficiency improvements.

Finance Costs:

The Danmark State guarantees loans for social housing construction through the Landsbyggefonden (National Building Fund), which collects contributions from existing social housing tenants to fund new construction and renovation.

Interest subsidy programs reduce borrowing costs for housing associations.

Construction and Labor:

Danmark has invested heavily in industrialized construction with companies like Lego Modular Buildings producing prefabricated elements.

The Danmark Building Research Institute (SBi) conducts research into cost-effective construction methods.

Energy-efficient passive house standards reduce long-term operating costs.

Key Organizations:

https://www.landsbyggefonden.dkLandsbyggefonden: ;

https://www.bl.dkBL (Danish Social Housing):

Nederland (Netherlands)

The Nederland has one of the largest social housing sectors in the world, with approximately 30% of total housing stock consisting of social rental housing managed by Housing Corporations (Woningcorporaties). These non-profit organizations are regulated by the Dutch Authority for Housing Corporations.

Policy and Legislative Actions:

The Housing Act (Woningwet) regulates housing corporations, requiring them to prioritize housing for low and middle-income households.

Rent control regulations cap annual rent increases and limit rents for social housing based on property points (woningwaarderingsstelsel).

The National Mortgage Guarantee (NHG) scheme reduces mortgage default risk, allowing banks to offer lower interest rates.

Finance and Construction Costs:

The WSW (Waarborgfonds Sociale Woningbouw) provides guarantees on loans taken by housing corporations, reducing borrowing costs significantly.

The National Institute for Family Finance Information (Nibud) provides guidelines for affordable housing cost ratios. Investment in prefabricated construction and energy-efficient retrofitting has reduced both construction and operating costs.

Key Organizations:

https://aedes.nlAedes (Housing Corporations Association): ;

https://www.wsw.nlWSW:

Schweiz (Switzerland)

Schweiz's housing affordability is supported by a high rate of cooperative housing (Genossenschaftswohnungen), strict rent control regulations, and federal and cantonal subsidies. Approximately 5% of the housing stock is in cooperatives, with higher rates in cities like Zurich (approximately 25%).

Policy and Legislative Actions:

The Code of Obligations (Obligationenrecht) provides strong tenant protections, including the right to challenge excessive rents and limits on rent increases based on reference mortgage rates.

The Federal Housing Act (Wohnraumfoerderungsgesetz) provides federal loans and guarantees for the construction of affordable cooperative and rental housing through the Federal Housing Office (BWO).

Cantonal and municipal governments provide additional subsidies and land at below-market prices to housing cooperatives.

Finance and Construction:

The Federal Housing Office (BWO) provides low-interest loans to housing cooperatives and non-profit housing organizations.

The Empa (Schweiz Federal Laboratories for Materials Science and Technology) researches cost-effective and sustainable construction materials.

Schweiz has invested in modular construction and energy-efficient design, with passive house standards increasingly adopted in new residential construction.

Key Organizations:

https://www.bwo.admin.ch/bwo/en/home.htmlhttps://www.wbg-schweiz.chBWO (Federal Housing Office): ; Wohnbaugenossenschaften Schweiz:

Österreich (Austria)

Österreich has one of the most comprehensive social housing systems in the world. Vienna, in particular, is renowned globally for its Gemeindebau (council housing) and subsidized housing programs that provide affordable housing to approximately 60% of Vienna's population.

Policy and Legislative Actions:

The Vienna Housing Act (Wiener Wohnbaugesetz) provides the legal framework for subsidized housing construction and tenant protections in Vienna. The Wiener Wohnen agency manages over 220,000 municipal apartments, making it the largest landlord in Europe.

The gemeinnuetzige Bautraeger (non-profit building developers) program provides subsidized construction loans to non-profit developers who must charge below-market rents. Limited-profit housing associations (gemeinnuetzige Wohnbauvereinigungen) are regulated to ensure affordable rents over the long term.

Finance and Labor Costs:

The Österreich Federal Government and the Viennese city government provide subsidized construction loans at 1-2% interest rates, compared to commercial rates.

The Wohnbaufoerderung (housing subsidy) system redistributes a portion of wage taxes to fund subsidized housing construction.

Labor costs are managed through efficient construction practices, strong vocational training for construction workers, and the use of prefabricated building elements.

Key Organizations:

https://www.wien.gv.at/wohnen/wienerwohnen/Wiener Wohnen: ;

https://www.oebb.atOEBB (Federal Government Housing Authority):

Other Countries with the Lowest Housing Costs as a Percent of Household Income

India

India's housing affordability relative to income — approximately 9% of household income — reflects both very low average incomes and a large stock of self-built and informal rural housing.

https://pmaymis.gov.in),https://mohua.gov.in),The primary national program is the Pradhan Mantri Awas Yojana (PMAY — launched in 2015 under the Ministry of Housing and Urban Affairs (MoHUA — which aims to deliver "Housing for All" through subsidies of up to INR 2.67 lakh for economically weaker sections and low-income groups purchasing or constructing homes.

The Credit-Linked Subsidy Scheme (CLSS) under PMAY provides interest subsidies of 3–6.5% on home loans for qualifying buyers.

https://hudco.org.in)The Housing and Urban Development Corporation (HUDCO — finances large-scale affordable housing projects by state agencies.

The Rajiv Awas Yojana (RAY) program targeted slum-free cities through in-situ rehabilitation and public housing construction.

India reduced the Goods and Services Tax (GST) on affordable housing to just 1% to lower construction costs.

https://nhb.org.in)The National Housing Bank (NHB — regulates housing finance companies and promotes low-income mortgage lending at concessional rates.

https://mhada.gov.in)State-level housing boards such as the Maharashtra Housing and Area Development Authority (MHADA — construct and allocate subsidized housing units by lottery to income-qualified applicants

Vietnam

Vietnam's housing cost burden of approximately 10% reflects both low average incomes and a strong tradition of family home ownership in rural areas.

https://moc.gov.vn),The Vietnamese government's primary instrument is the National Social Housing Program, overseen by the Ministry of Construction (MOC — which approved in April 2023 a plan to construct at least one million social housing units by 2030 at a total estimated cost of US$36 billion.

The Housing Law 2023, effective August 2023, streamlined approvals and mandated that localities allocate 20% of urban land for social housing.

https://vbsp.org.vn)https://sbv.gov.vn)The Vietnam Bank for Social Policies (VBSP — and the State Bank of Vietnam (SBV — provide subsidized mortgage credit packages at 1.5–2% below prevailing market rates for qualifying buyers of social housing.

Industrial park developers are required to construct worker dormitories on-site.

The government has introduced a VND 120 trillion ($5.1 billion) preferential credit program specifically for social and worker housing purchasers and developers.

Public-private partnerships fund 108 approved social housing projects across the country.

Indonesia

Indonesia's housing cost burden of approximately 11% reflects a large rural population and significant informal housing stock.

https://www.pu.go.id).The national housing program is administered by the Ministry of Public Works and Housing (PUPR —

The Fasilitas Likuiditas Pembiayaan Perumahan (FLPP) program provides government-subsidized mortgage loans at fixed 5% interest rates for up to 20 years to low-income first-time buyers, enabling home purchases at prices below market rate.

https://tapera.go.id)The Tabungan Perumahan Rakyat (Tapera — is a mandatory national housing savings program for workers, collecting monthly contributions from both employees and employers that are pooled to finance affordable housing loans.

(https://www.perumnas.co.id),Perum Perumnas a state-owned housing developer, constructs and markets subsidized homes across the archipelago.

The government sets price ceilings on subsidized homes by region.

https://www.btn.co.id),Bank Tabungan Negara (BTN — the state-owned housing bank, provides the majority of affordable mortgage financing.

https://kotaku.pu.go.id)The National Slum Upgrading Program (KOTAKU — improves infrastructure in urban informal settlements.

Bangladesh

Bangladesh's housing cost burden of approximately 11% reflects very low household incomes alongside a predominantly rural population that occupies self-built homes at minimal cost.

https://mhpw.gov.bd).Urban housing is administered by the Ministry of Housing and Public Works (

https://nha.gov.bd)The National Housing Authority (NHA — constructs and allocates low-cost apartment units in Dhaka and other major cities for civil servants and low-income households.

The government's Ashrayan Project provides rural housing to landless and homeless families, constructing basic homes on government-allocated land at no cost to recipients — over 400,000 families have been housed under this initiative.

https://bhbfc.gov.bd)The Bangladesh House Building Finance Corporation (BHBFC — provides long-term mortgage loans at subsidized rates.

The Dhaka North and South City Corporations administer urban land use and housing permits.

Rural housing costs remain extremely low due to prevalent use of bamboo, corrugated metal, and locally sourced materials in construction — materials that require little formal financing.

Pakistan

Pakistan's housing cost burden of approximately 11% reflects very low median incomes and a large informal housing sector.

https://nphp.gov.pk),The national flagship program is the Naya Pakistan Housing Programme (NPHP — which aimed to construct 5 million affordable homes for low-income families.

https://naphda.gov.pk)The Naya Pakistan Housing & Development Authority (NAPHDA — oversees program implementation, targeting families with incomes under PKR 25,000 per month.

https://www.sbp.org.pk)The State Bank of Pakistan (SBP — requires all banks to meet mandatory housing finance targets, increasing mortgage availability.

https://hbfc.com.pk)The House Building Finance Company (HBFC — provides subsidized mortgage loans at reduced mark-up rates for low-income buyers.

Federal and provincial governments provide land at concessional rates for low-cost housing projects.

Construction technology programs promote the use of compressed stabilized earth blocks and other low-cost materials.

The Pakistan Housing Authority Foundation (PHAF) develops affordable housing colonies for government servants.

Provincial housing authorities in Punjab, Sindh, and Khyber Pakhtunkhwa administer their own low-income housing schemes.

Ethiopia

Ethiopia's housing cost burden of approximately 12% is among the lowest in the world, primarily driven by very low average incomes and the widespread construction of informal earthen and corrugated metal homes in both rural and urban areas at minimal cost.

https://www.mudc.gov.et),The government housing program of note is the Integrated Housing Development Programme (IHDP), administered by the Ministry of Urban Development and Construction ( which has delivered tens of thousands of low-cost condominium apartments in Addis Ababa and secondary cities.

The IHDP uses a lottery system for applicant selection and offers homes for purchase through installment payments over 20–40 years at affordable prices.

The Ethiopian Mortgage Refinance Company (EMRC) supports the mortgage market.

Construction uses low-skilled labor and locally produced materials including stone, timber, and compressed earth bricks, keeping costs minimal.

The government land lease system (rather than freehold ownership) keeps formal land costs low, as the state owns all urban land and leases it through auction.

Egypt

Egypt's housing cost burden of approximately 13% reflects low average incomes combined with a large government role in housing supply.

https://www.housing.gov.eg)The Ministry of Housing, Utilities and Urban Communities (MHUUC — administers national housing policy.

https://www.shmff.gov.eg)The Social Housing and Mortgage Finance Fund (SHMFF — provides subsidized mortgage loans and housing subsidies for households earning below EGP 2,500 per month.

The Dar Misr program delivers finished apartments to middle-income buyers at government-set prices.

https://www.mod.gov.eg)The Armed Forces Engineering Authority (AFEA — has constructed over one million housing units for low-income families and slum residents, leveraging military labor and tax-exempt status to keep costs below market.

https://www.nuca.gov.eg)The New Administrative Capital and 28 other new cities under construction by the New Urban Communities Authority (NUCA — add housing supply.

Egypt's rental regulation historically kept rents very low, and a large proportion of the population lives in unregistered informal housing that falls outside market pricing.

Morocco

Morocco's housing cost burden of approximately 13% reflects a mix of low incomes, significant rural self-built housing, and targeted government programs.

https://www.mhpv.gov.ma)The Ministry of National Territory, Urban Planning, Housing and City Policy ( oversees national housing strategy.

The Villes Sans Bidonvilles (Cities Without Slums) program, launched in 2004, has demolished slums and relocated residents to newly constructed low-cost housing, benefiting over 300,000 families.

https://www.alomrane.gov.ma),The Al Omrane Group ( a state-owned developer, constructs and sells low-income and social housing at regulated prices.

https://www.sgecg.ma)The Fonds de Garantie pour l'Accession Sociale (FGAS — provides government loan guarantees for first-time buyers of low-cost homes, reducing lender risk and mortgage rates.

Construction is dominated by local labor and materials including brick, tile, and rammed earth, keeping costs low.

(https://www.alamana.org.ma)Microfinance institutions such as Al Amana provide housing microloans to rural and low-income households.

Philippines

The Philippines' housing cost burden of approximately 14% reflects low average household incomes and a large informal sector.

https://www.dhsud.gov.ph).The primary national housing body is the Department of Human Settlements and Urban Development (DHSUD —

https://www.shfc.gov.ph)The Social Housing Finance Corporation (SHFC — provides affordable housing loans to low-income earners under the Community Mortgage Program (CMP), allowing informal settler communities to collectively purchase and develop land.

https://www.nha.gov.ph)The National Housing Authority (NHA — constructs and manages resettlement housing and socialized housing projects for displaced and low-income families.

https://www.pagibigfundservices.com)The Home Development Mutual Fund (Pag-IBIG — administers a mandatory savings and housing loan program for formal sector workers, offering mortgage loans at 3–10% interest depending on loan size.

Private developers are required to allocate 20% of housing projects to socialized housing units for low-income buyers at price-controlled rates under the Balanced Housing Development Program.

Thailand

Thailand's housing cost burden of approximately 14% reflects moderate income levels and strong government involvement in social housing.

https://www.nha.co.th)The National Housing Authority of Thailand (NHA — constructs and rents subsidized housing to low-income urban households, operating over 200 housing projects nationwide.

https://www.ghbank.co.th)The Government Housing Bank (GH Bank — provides affordable fixed-rate mortgages to first-time buyers and low-income earners, often at below-market rates with government support.

The Baan Eua Arthorn program delivered over 600,000 affordable housing units at regulated prices for households earning under THB 15,000 per month.

https://www.codi.or.th),The Baan Mankong community upgrading program, administered by the Community Organizations Development Institute (CODI — channels government subsidies directly to low-income urban communities that self-manage housing improvement and construction.

Thailand's relatively low construction costs reflect abundant local labor and use of concrete block and tile materials.

Malaysia

Malaysia's housing cost burden of approximately 15% reflects moderate income levels and a substantial government affordable housing infrastructure.

https://www.kpkt.gov.my)The Ministry of Housing and Local Government (KPKT — oversees national policy.

The People's Housing Programme (PPR) provides subsidized rental housing for low-income households in urban areas at rents as low as RM 124 per month.

https://www.pr1ma.my)PR1MA (Perumahan Rakyat 1Malaysia — delivers affordable homes for middle-income earners at 20% below market value in selected locations.

My First Home Scheme and the Housing Credit Guarantee Scheme (HCGS) help first-time buyers access 100% mortgages without initial deposits.

The National Affordable Housing Council (MPMMB) coordinates state and federal affordable housing delivery.

https://www.spnb.com.my),Syarikat Perumahan Negara Berhad (SPNB — a government-linked company, constructs and sells affordable homes to low-income buyers.

States implement their own schemes: Selangor, for instance, operates the Rumah Selangorku program delivering homes at fixed prices from RM 42,000 to RM 250,000.

Algeria

Algeria's housing cost burden of approximately 15% reflects very low rents subsidized by decades of state housing programs and significant oil revenues devoted to public construction.

https://www.mhuv.gov.dz)The Ministry of Housing, Urban Planning and the City ( administers national housing policy.

Algeria operates one of the largest public housing programs in Africa, with the government constructing and distributing millions of subsidized apartments (LPP — logement promotionnel public and LPA — logement promotionnel aidé) to citizens at regulated below-market prices.

https://www.aadl.com.dz)The AADL (Agence Nationale de l'Amélioration et du Développement du Logement — administers rent-to-own public housing schemes where participants pay monthly installments well below market rent.

https://www.cnepbanque.dz)The Caisse Nationale d'Épargne et de Prévoyance (CNEP — provides subsidized housing loans.

Social housing (logement social locatif, LSL) units are allocated free to lowest-income households.

Algeria's state-funded construction has delivered hundreds of thousands of units annually, although quality and location issues persist.

Kenya

Kenya's housing cost burden of approximately 15% reflects very low median incomes and extensive informal settlement (slum) housing in cities.

https://www.statehousingkenya.go.ke)The State Department of Housing and Urban Development ( administers national housing policy.

https://kmrc.co.ke)The Kenya Mortgage Refinance Company (KMRC — provides long-term liquidity to banks and savings and credit cooperatives (SACCOs) for affordable mortgage lending, targeting households earning under KES 150,000 per month.

https://www.nhc.go.ke)The National Housing Corporation (NHC — constructs affordable housing units for sale and rent to low-income Kenyans.

President Ruto's Affordable Housing Programme (AHP) targets the delivery of 200,000 affordable housing units per year through public-private partnerships, with workers contributing a 1.5% housing levy through the National Housing Fund (NHF).

https://kisip.go.ke)The Kenya Slum Upgrading Programme (KENSUP) and KISIP (Kenya Informal Settlements Improvement Programme — upgrade services in informal settlements.

https://www.sasra.go.ke)SACCOs (savings cooperatives — are the most common mechanism for housing finance for low-income Kenyans.

Kazakhstan

Kazakhstan's housing cost burden of approximately 16% reflects moderate income levels and a large Soviet-era public housing stock that suppresses effective housing costs for long-term residents.

(https://www.gov.kz/memleket/entities/miid)The Ministry of Industry and Infrastructure Development oversees housing policy.

The 7-20-25 mortgage program offers loans at 7% interest with a 20% down payment over 25 years to first-time buyers.

The Baqyt (Happiness) program provides subsidized mortgages at 2–5% interest for low- and middle-income families.

The Nurly Zher national housing program targets the construction of affordable housing and infrastructure renewal.

https://www.hcsb.kz),Zhilstroysberbank (HCSB — the state-owned housing savings bank, administers a contractual savings scheme where depositors earn subsidized interest and gain access to preferential mortgage rates.

The government allocates 5% of new housing construction for low-income citizens free of charge.

A large share of Kazakhstan's urban population still lives in Soviet-era apartment blocks (hrushchyovkas) where maintenance costs are low, holding down effective housing costs relative to income.

Ghana

Ghana's housing cost burden of approximately 16% reflects low average incomes and a predominantly informal, self-built housing sector.

https://www.mwh.gov.gh)The Ministry of Works and Housing ( administers national housing policy.

https://gredaghana.com)The Ghana Real Estate Developers Association (GREDA — works with the government to deliver affordable housing.

https://www.ssnit.org.gh)The Social Security and National Insurance Trust (SSNIT — has constructed and manages affordable rental housing for its members in major cities.

The Affordable Housing Programme has delivered estates in Tema, Asokore Mampong, and other cities.

https://www.hfcghana.com)The Home Finance Company (HFC Bank — provides mortgage financing.

The majority of Ghanaians, however, build their own homes incrementally over many years using remittances and personal savings — a "build-as-you-earn" model — which reduces formal housing costs.

The government provides building permits and infrastructure connections at low cost to encourage formalization of self-built homes.

Rural housing is predominantly mud, timber, and corrugated metal construction at near-zero financing cost.

Myanmar

Myanmar's housing cost burden of approximately 16% reflects very low household incomes and extensive self-built rural and peri-urban housing.

(https://www.moc.gov.mm)The Ministry of Construction administers housing policy.

The Department of Urban and Housing Development (DUHD) develops and manages government housing estates for civil servants and low-income households.

The Myanmar Microfinance Supervisory Enterprise (MMSE) and microfinance institutions provide small housing loans to informal sector workers.

The Myanmar Housing Development Loan program offers concessional loans at 13% interest, below market rates.

Urban housing, especially in Yangon, is dominated by large condominium developments and informal wooden or bamboo structures — the latter built at minimal cost using locally harvested materials.

The Myanmar National Building Code governs construction standards.

Political instability and economic disruption since the 2021 military coup have severely disrupted formal housing programs and investment, increasing reliance on informal housing solutions.

China

https://www.mohurd.gov.cn).China maintains a massive public housing system overseen by the Ministry of Housing and Urban-Rural Development (MOHURD —

Since 2011, the government has built tens of millions of subsidized "indemnificatory housing" (保障性住房) units for low-income urban residents.

The hukou household registration system historically tied housing access to urban work units (danwei), providing housing at negligible cost.

https://www.pbc.gov.cn)The People's Bank of China ( regulates mortgage rates and mandates that banks offer preferential lending rates for first-time buyers of smaller homes.

Local governments acquire land through the state land-leasing system and can release land for affordable housing at controlled prices.

https://www.gjj.gov.cn)China's mandatory Housing Provident Fund (公积金 — requires both employers and employees to contribute monthly, with funds loanable to employees at below-market mortgage rates.

The PLA Engineering Corps historically participated in large-scale civilian construction projects during the Maoist era, contributing to urban housing stock.

Italy

Italy's relatively low housing cost burden (17% of disposable income) reflects a high homeownership rate of approximately 73% — one of the highest in Europe — with most Italians owning their homes outright or with long-standing low-rate mortgages.

https://www.inps.it)The Istituto Nazionale di Previdenza Sociale (INPS — administers social assistance programs that include housing subsidies for low-income households.

https://www.cdp.it),The Cassa Depositi e Prestiti (CDP — Italy's state development bank, finances affordable social housing construction through the Social Housing Fund (FIA).

The Fondo Nazionale per l'Abitare (National Housing Fund) was established by the government to co-invest with private entities in affordable rental housing.

Regional governments (regioni) administer Edilizia Residenziale Pubblica (ERP) — public residential housing estates — which provide subsidized rents for qualifying residents.

Italy's relatively stable rent levels in smaller cities and the south also contribute to nationwide averages remaining low.

Spain

https://www.mivau.gob.es)Spain's Ministry of Housing and Urban Agenda (Ministerio de Vivienda y Agenda Urbana — oversees national housing policy.

The Spanish government introduced the Housing Law of 2023 (Ley de Vivienda), which caps rent increases in stressed housing markets and requires that a portion of new developments be set aside for social housing.

The Vivienda de Protección Oficial (VPO) program subsidizes the construction and sale of regulated-price homes for qualifying income levels.

Regional governments (comunidades autónomas) administer publicly owned affordable rental housing.

https://www.ico.es),The Instituto de Crédito Oficial (ICO — Spain's state financing institution, provides subsidized mortgage loans for first-time buyers and affordable housing developers.

Spain's low average housing costs reflect both the VPO legacy stock of regulated homes and lower price levels in inland and rural regions.

Japan

Japan maintains a uniquely permissive national zoning law under the City Planning Act, allowing medium-density residential construction across most of the country, which keeps land costs comparatively low.

https://www.mlit.go.jp)The Ministry of Land, Infrastructure, Transport and Tourism (MLIT — oversees housing policy nationally.

https://www.jhf.go.jp)Japan's Japan Housing Finance Agency (JHF — provides long-term fixed-rate mortgages (Flat 35) at competitive rates, reducing financing costs.

https://www.sekisuihouse.co.jp)https://www.daiwahouse.com)Major manufacturers such as Sekisui House ( and Daiwa House ( produce factory-prefabricated homes that dramatically reduce construction time and costs.

Transit-oriented development policies increase housing supply near rail lines.

Japan's tax system favors new construction, encouraging replacement of old housing stock and maintaining supply.

South Korea

https://www.molit.go.kr)South Korea's Ministry of Land, Infrastructure and Transport (MOLIT — manages housing policy.

https://www.lh.or.kr)The Korea Land and Housing Corporation (LH — is one of the largest public housing developers in the world, constructing and managing millions of public rental and subsidized sale housing units.

The unique "jeonse" lease system — in which tenants pay a large lump-sum deposit instead of monthly rent and recover it in full at lease end — effectively eliminates monthly rent payments for many households and contributes to low housing cost burden ratios.

https://www.hf.go.kr)The Korea Housing Finance Corporation (HF — provides government-backed mortgage products at below-market rates.

The National Rental Housing program provides long-term subsidized rentals to low- and middle-income households.

New town development (신도시) on government-acquired land adjacent to Seoul has substantially increased supply.

France

https://www.union-habitat.org.France operates the largest social housing sector in Western Europe, with 5.3 million publicly owned units (HLM — Habitation à Loyer Modéré) administered by the Union Sociale pour l'Habitat —

https://www.cohesion-territoires.gouv.fr.The SRU law (Loi Solidarité et Renouvellement Urbain) requires 25% of housing stock in large municipalities to be social housing, with financial penalties for non-compliance enforced by the Ministry of Territorial Cohesion —

https://www.caissedesdepots.frThe Livret A savings account, regulated by Caisse des Dépôts —

— channels household savings into subsidized loans for social housing construction.

https://www.actionlogement.frEmployers with over 50 staff must contribute 0.45% of gross payroll to Action Logement — — to fund affordable employee housing.

Regulated social rents for HLM tenants average 40–60% below private market rates.

Germany

https://www.bmwsb.bund.de.Germany keeps homeownership below 50% and maintains a large, well-regulated rental sector under tenant-protection laws administered by the Bundesministerium für Wohnen —

Rent control (Mietpreisbremse) caps rents in high-demand cities at a percentage above the local reference rent (Mietspiegel).

https://www.gdw.deNon-profit housing associations under GdW Bundesverband — — own approximately 6 million units and charge below-market rents.

Social housing subsidies (Sozialer Wohnungsbau) are provided to Länder through federal transfers.

https://www.kfw.deThe state development bank KfW — — offers below-market loans for energy-efficient affordable housing.

Germany's strong apprenticeship system maintains a large skilled construction workforce, keeping labor costs more stable than in comparably wealthy nations.

Canada

https://www.cmhc-schl.gc.ca),Canada's federal housing agency, the Canada Mortgage and Housing Corporation (CMHC — insures mortgages, funds affordable rental construction, and conducts housing research.

The National Housing Strategy, launched in 2017, committed over $82 billion to increase housing supply and affordability over a decade.

The Rental Construction Financing Initiative provides low-cost CMHC loans to developers building affordable purpose-built rental housing.

https://www.bchousing.org)Provincial governments, especially British Columbia (BC Housing — and Ontario, administer social housing programs with federal cost-sharing.

https://www.sac-isc.gc.caCanada's First Nations Housing programs under Indigenous Services Canada () fund on-reserve housing construction.

Federal co-investment programs pair with municipal and non-profit developers to build mixed-income housing.

Canada's housing cost burden remains lower than the U.S.

largely due to a larger social rental stock per capita and more active federal involvement in housing supply.

References for Section 2:

https://www.oecd.org/housing/OECD Housing Policy Toolkit:

https://unhabitat.org/topic/housingUnited Nations (UN)-Habitat Global Housing Policy Review:

Section 3: What the U.S. Can Do to Reduce Housing Costs

The United States faces a multi-dimensional housing affordability crisis that requires a comprehensive, coordinated approach across federal, state, and local governments, as well as the private sector and nonprofit organizations. The following are recommended strategies to reduce housing costs:

Material Costs

Traditional lumber-based construction is costly and supply-constrained. Alternative materials can significantly reduce costs.

Autoclaved Aerated Concrete (AAC) — a lightweight, thermally insulating, fire-resistant material — is widely used in Germany, Scandinavia, and across the Middle East and Asia.

Structural Insulated Panels (SIPs) provide excellent insulation and reduce framing labor.

These materials are routinely used in routine construction in Sweden, Finland, Norway, Germany, Japan, and Australia.

Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE — https://www.energy.gov/eere) supports research into advanced building materials.

The PATH (Partnership for Advancing Technology in Housing) program — https://www.huduser.gov — has tested AAC and SIPs in American demonstration projects.

The National Institute of Standards and Technology (NIST — https://www.nist.gov) provides materials testing certification that is needed before broader adoption.

Reducing Construction Costs:

The federal government should invest in research and development for innovative construction methods, including modular construction, 3D-printed housing, and cross-laminated timber (CLT) technologies.

The Department of Housing and Urban Development (HUD) should create a national program to incentivize the adoption of these cost-reducing technologies.

The federal government should work with the American National Standards Institute (ANSI) and the International Code Council (ICC) to standardize building codes across states, eliminating the regulatory patchwork that increases compliance costs.

Congress should provide tax credits and grants to manufacturers of prefabricated and modular housing components to expand domestic production capacity and reduce costs through economies of scale.

Labor Costs

Construction labor is one of the largest components of housing costs. Several strategies can reduce these costs without sacrificing quality. These include community self-build programs, active military construction, government worker brigades, prefabrication, robotics, apprenticeship expansion, and prison labor (the last of which remains ethically and legally controversial in the United States).

Active Military Personnel Building Public Housing for Civilians

Several countries have used or currently use active-duty military personnel to construct civilian public housing, providing a significant and low-cost labor pool that has produced millions of housing units worldwide. The following is a country-by-country summary based on documented programs.

https://en.wikipedia.org/wiki/Armed_Forces_Engineering_Authority_(Egypt))EGYPT — The most extensive current example. Egypt's Armed Forces Engineering Authority (AFEA — is a formal agency of the Ministry of Defense that carries out large-scale civilian construction, including social housing, roads, hospitals, and new cities.

Under President Abdel Fattah el-Sisi (himself a former military commander), the AFEA has been entrusted with building hundreds of thousands of housing units for low-income Egyptians.

Documented projects include:

The construction of 457,000 housing units for low-income buyers, each approximately 90–100 square meters;

Over one million housing units to replace slum areas at a cost of 635 billion Egyptian pounds;

An 11-project program of 210 housing complexes for 1.1 million people, inaugurated by

https://carnegieendowment.org/research/2024/11/do-no-harm-toward-an-environmental-audit-of-military-managed-civilian-projectsPresident Sisi in 2021. The AFEA used military conscripts alongside civilian contractors, and is exempt from taxes, giving it a significant cost advantage. By 2020 it had delivered civilian projects aggregating 2.2 trillion Egyptian pounds, representing 27–38% of all government-funded construction in that period. Source: Carnegie Endowment for International Peace ();

https://www.egypttoday.com);https://www.dailynewsegypt.com).Egypt Today ( Daily News Egypt (

CHINA (Historical — PLA Engineering Corps, 1950s–1983) — China's People's Liberation Army Engineering Corps was established in 1966 and previously in the 1950s as a military construction labor force. Between 1979 and 1982, approximately 20,000 PLA Engineering Corps soldiers were transferred to Shenzhen where they built civilian infrastructure including transport networks, water and sewerage systems, and public and commercial buildings — foundational work for what became one of China's most important cities.

From 1981 to 1985, the PLA contributed 110 million workdays to 44,500 construction projects nationwide, including city infrastructure, ports, oilfields, mines, and afforestation.

(https://www.cambridge.org/core/journals/china-quarterly);https://en.wikipedia.org/wiki/Modernization_of_the_People%27s_Liberation_ArmyThe Engineering Corps was formally demobilized in 1983 under Deng Xiaoping's modernization reforms, and today the PLA does not routinely perform civilian construction. Source: Cambridge University Press / China Quarterly Modernization of the PLA, Wikipedia ().

https://www.minfar.mil.cu),CUBA — Cuba's military structure includes two formations that participate in civilian construction. First, the Youth Labor Army (Ejército Juvenil del Trabajo — EJT), formally under the Ministry of the Revolutionary Armed Forces (MINFAR — is by law a paramilitary organization whose members are primarily engaged in agriculture and military construction projects, including public housing.

Male citizens serve in the EJT as part of Cuba's compulsory military service obligation. Second, Cuba's "Microbrigade" system, active from the 1970s and still in use, deployed state-sector

workers — organized in quasi-military brigades under ministry supervision — to construct multifamily public housing buildings. Construction workers received wages during service, and completed apartments were allocated to workers based on need and productivity. The Ministry of

https://en.wikipedia.org/wiki/Cuban_Revolutionary_Armed_Forces);https://havanatimes.org/diaries/eduardo-n-cordovi/micro-construction-brigades-in-cuba/);https://www.globalsecurity.org/military/world/cuba/far.htmConstruction supplied technical expertise, equipment, and materials while brigade members provided the labor. Over 1,000 workers built 1,154 housing units in Havana alone in 1971. Source: Cuban Revolutionary Armed Forces, Wikipedia ( Havana Times ( GlobalSecurity.org ().

https://www.fanb.mil.ve)VENEZUELA — Venezuela's Bolivarian National Armed Forces (FANB — have been formally integrated into the Gran Misión Vivienda Venezuela (GMVV) housing program.

https://www.minvih.gob.ve),Under the "civil-military unity" doctrine of Presidents Chávez and Maduro, military units have participated in the construction and logistics of public housing projects. Venezuela's military-aligned communal construction brigades, organized under the Ministry of Housing and Habitat (Ministerio de Hábitat y Vivienda — built over 37% of the GMVV's housing units through self-managed community and quasi-military assemblies.

https://en.wikipedia.org/wiki/Great_Mission_Housing_Venezuela);https://venezuelanalysis.com/analysis/15722/).Between 2011 and 2023, the GMVV program claims to have delivered over 4 million homes, with armed forces personnel providing logistical support, materials transport, and direct labor on selected projects. Source: Great Mission Housing Venezuela, Wikipedia ( Venezuelanalysis (

https://www.usace.army.mil)UNITED STATES (Limited scope — not routine civilian housing) — In the United States, active-duty military personnel do not routinely construct public civilian housing. The U.S. Army Corps of Engineers (USACE — manages federal civil works and military construction projects but uses civilian contractors, not active-duty soldiers, as the primary construction workforce.

https://www.militaryhousingassociation.org),The U.S. Military Housing Privatization Initiative (MHPI — authorized by Congress in 1996, uses private companies to build, own, and manage on-base family housing for service members — it does not build off-base civilian housing. Historically, during World War II and in the 1950s–1960s, military construction programs built large volumes of family housing on installations using a combination of appropriated funds and private contracts.

There is no current federal program that deploys active-duty U.S. military personnel to construct housing for the general civilian public, though such a program could theoretically be authorized by Congress as a pilot initiative.

GENERAL ASSESSMENT — The use of active military personnel for civilian housing construction is most prevalent in countries with (a) large conscript armies with engineering corps, (b) authoritarian or hybrid-authoritarian governments that integrate the military into the civilian economy, and (c) severe housing deficits that require rapid mass construction.

https://www.va.gov)https://www.dol.gov).Democratic nations with professional volunteer militaries (U.S., U.K., Canada, Australia, Germany) do not employ active-duty soldiers in civilian public housing construction. For the United States, the most realistic adaptation of this model would be to expand the USACE's role,create a National Housing Construction Corps of trained AmeriCorps-style volunteers, or offer construction apprenticeships to transitioning veterans through the Department of Veterans Affairs ( and the Department of Labor (

Government Workers and State Enterprise Labor

Several countries have deployed government civil servants and state enterprise workers in housing construction.

https://www.moc.gov.vn)Vietnam's Ministry of Construction ( employs state construction enterprises to build government-subsidized worker housing.

https://www.sasac.gov.cn),China's state-owned construction enterprises, under the supervision of the State-owned Assets Supervision and Administration Commission (SASAC — construct the bulk of China's social housing.

Venezuela's government ministries and state workers' brigades have contributed labor to the Gran Misión Vivienda program. In Cuba, conscripts working in state enterprises under military oversight have built public housing continuously since the 1970s.

Prefabrication, Robotics, and Apprenticeships

https://www.sekisuihouse.co.jp)Japan leads the world in using industrial robots for housing manufacturing through companies like Sekisui House ( and Panasonic Homes. Sweden's modular factory construction — pioneered by the 1960s Million Programme — produces complete home units with minimal on-site labor. Germany and the Netherlands rely on factory-built panelized construction systems.

https://www.dol.gov)https://www.nccer.org)The U.S. Department of Labor ( and the National Center for Construction Education and Research (NCCER — can expand apprenticeship programs to increase the labor supply and reduce wage premiums caused by craft skill shortages. Prison labor programs exist in some U.S. states for public construction but are rarely used for housing and remain ethically and legally controversial.

Methods of Construction

Innovative construction methods can substantially reduce time and cost.

Modular construction — building home sections in factories then assembling on-site — is practiced at scale in Japan (Sekisui House), Sweden, Finland, Norway, and Germany.

https://www.iconbuild.com)3D printing of concrete homes has been demonstrated at scale by ICON ( in the U.S.

and by projects in China and the Netherlands.

Lego-like interlocking block systems allow unskilled workers to assemble walls quickly. The U.S.

https://www.huduser.gov)HUD's Office of Policy Development and Research ( has studied these methods but implementation lags far behind peer nations.

https://www.buildinginnovationhub.org.au)The Building Innovation Hub ( in Australia coordinates industry adoption of modular and prefabricated construction.

Federal incentives such as tax credits for modular construction could accelerate adoption in the United State

Reducing Land and Zoning Costs:

The federal government should provide financial incentives to states and municipalities that adopt zoning reforms allowing higher-density development, accessory dwelling units (ADUs), and mixed-use development.

Federal Community Development Block Grants (CDBG) should be conditioned on localities adopting pro-housing zoning policies.

The federal government should establish a National Land Trust Program that acquires land in high-cost areas and leases it at below-market rates to affordable housing developers, permanently removing the cost of land from housing prices.

State governments should enact legislation prohibiting exclusionary zoning practices that effectively ban affordable housing.

Reducing Finance Costs:

Congress should expand the Low-Income Housing Tax Credit (LIHTC) program, which is the largest source of financing for affordable housing construction, by at least doubling the annual allocation.

Congress should establish a National Housing Trust Fund with robust annual appropriations of at least $50 billion to provide grants to states for the construction, preservation, and rehabilitation of affordable rental housing.

The Federal Home Loan Bank System should be required to increase its affordable housing program contributions.

High mortgage interest rates are the single largest contributor to monthly housing costs.

https://www.federalreserve.gov)The Federal Reserve ( can reduce the federal funds rate to lower the cost of mortgage lending.

https://www.fhfa.gov)(https://www.fanniemae.com)(https://www.freddiemac.com),The Federal Housing Finance Agency (FHFA — regulates Fannie Mae and Freddie Mac whose conforming loan standards directly affect mortgage availability.

https://www.cdfifund.govCongress can authorize the expansion of the Community Development Financial Institutions (CDFI) Fund — — to provide low-interest construction loans to affordable housing developers.

https://www.kfw.de),https://www.husbanken.no),https://www.cpf.gov.sg).Countries that have used state-backed mortgage lending to reduce financing costs include Germany (KfW Bank — Norway (Husbanken — and Singapore (CPF savings system —

https://www.gov.uk/help-https://www.nhfic.gov.au)First-time buyer programs modeled on the UK's Help to Buy scheme (to-buy-equity-loan) and Australia's First Home Guarantee ( could be replicated in the U.S.

Reducing Rental Costs:

Congress should enact federal protections against rent gouging while preserving incentives for housing construction.

The federal government should expand the Housing Choice Voucher (Section 8) program to serve all eligible households, rather than the current 25% of eligible households. HUD should enforce fair housing laws more aggressively and provide technical assistance to localities to develop rent stabilization programs that protect tenants without discouraging new construction.

Congress should provide tax incentives to private landlords who voluntarily limit rent increases to affordable levels.

Section 4: References

The following references were used in compiling the information in Sections 2 and 3 of this document:

https://www.oecd.org/housing/data/affordable-housing-database/1. Organisation for Economic Co-operation and Development (OECD) Affordable Housing Database:

https://unhabitat.org/topic/housing2. United Nations (UN)-Habitat:

https://www.jchs.harvard.edu3. Harvard Joint Center for Housing Studies:

https://nlihc.org4. National Low Income Housing Coalition:

https://www.brookings.edu/research/single-family-zoning-and-racial-segregation/5. Brookings Institution - Zoning Reform:

https://www.hud.gov6. HUD (Department of Housing and Urban Development):

https://ara.fi/en-US7. ARA Suomi (Housing Finance and Development Centre):

https://www.husbanken.no/english/8. Husbanken Norge (State Housing Bank):

https://www.boverket.se/en/start/9. Boverket Sverige:

https://www.hdb.gov.sg10. Singapore Housing and Development Board:

https://www.hdb.gov.sghttps://www.ura.gov.sghttps://www.cpf.gov.sgHousing Development Board (HDB), Singapore: Urban Redevelopment Authority (URA), Singapore: Central Provident Fund (CPF), Singapore:

https://www.mlit.go.jphttps://www.jhf.go.jpMinistry of Land, Infrastructure, Transport and Tourism (MLIT), Japan: Japan Housing Finance Agency (JHF):

https://www.bmwsb.bund.deBundesministerium für Wohnen (Federal Ministry for Housing), Germany:

https://www.gdw.dehttps://www.kfw.deGdW Bundesverband Deutscher Wohnungs- und Immobilienunternehmen: KfW Development Bank, Germany:

https://www.ilent.nlhttps://www.nhg.nlhttps://www.union-habitat.orghttps://www.caissedesdepots.frAutoriteit woningcorporaties, Netherlands: Nationale Hypotheek Garantie (NHG), Netherlands: Union Sociale pour l'Habitat, France: Caisse des Dépôts, France:

https://www.actionlogement.frAction Logement, France:

https://www.sverigesallmannytta.sehttps://www.boverket.sehttps://www.sbab.seSveriges Allmännytta (Swedish Housing Association): Boverket (Swedish National Board of Housing, Building and Planning): SBAB Bank, Sweden:

https://www.ara.fihttps://www.hel.fiHousing Finance and Development Centre (ARA), Finland: City of Helsinki Housing, Finland:

https://www.husbanken.nohttps://www.nbbl.noHusbanken (Norwegian State Housing Bank): NBBL (Norwegian Building and Housing Association):

https://www.hud.govhttps://www.fhfa.govU.S. Department of Housing and Urban Development (HUD): Federal Housing Finance Agency (FHFA):

https://www.cdfifund.govCDFI Fund:

https://www.energy.gov/eereU.S. Department of Energy — EERE:

https://www.nist.govhttps://www.habitat.orgNational Institute of Standards and Technology (NIST): Habitat for Humanity:

https://www.iconbuild.comICON 3D Printing:

https://www.huduser.govHUD Office of Policy Development and Research:

https://www.nccer.orgNational Center for Construction Education and Research (NCCER):

https://www.oecd.org/social/affordable-housing-database.htmOrganisation for Economic Co-operation and Development (OECD) Affordable Housing Database:

https://www.numbeo.com/cost-of-living/Numbeo Cost of Living Survey:

Section 5: Draft of a House Bill

118th CONGRESS

1st Session

H.R. ________

A BILL

To make housing costs affordable for all Americans, to reduce barriers to housing construction, to establish funding mechanisms for affordable housing, and for other purposes.

SHORT TITLE

THE AFFORDABLE HOUSING FOR ALL AMERICANS ACT

SECTION 1. DEFINITIONS

As used in this Act:

(1) "Affordable Housing" means housing for which the occupant pays no more than 30% of annual gross income for owner-occupied units, including principal, interest, taxes, insurance, and utilities, or no more than 30% of annual gross income for renters, including all shelter costs.

(2) "Extremely Low-Income Household" means a household with income at or below 30% of the area median income (AMI), as defined by the Secretary of Housing and Urban Development.

(3) "Very Low-Income Household" means a household with income at or below 50% of the AMI.

(4) "Low-Income Household" means a household with income at or below 80% of the AMI.

(5) "Middle-Income Household" means a household with income between 80% and 120% of the AMI.

(6) "National Affordable Housing Fund" means the fund established under Section 8 of this Act.

(7) "Modular Construction" means a construction method in which components of a structure are prefabricated off-site in a factory-controlled environment and then assembled on-site.

(8) "Inclusionary Zoning" means a land use regulation that requires or incentivizes a percentage of affordable housing units in new residential developments.

(9) "Cost-Burdened Household" means a household that spends more than 30% of its income on housing costs.

(10) "Severely Cost-Burdened Household" means a household that spends more than 50% of its income on housing costs.

Autoclaved aerated concrete (AAC) — A lightweight, precast building material made from natural raw materials, including sand, cement, and water.

Build-to-rent — A residential development model in which units are designed and constructed specifically for rental rather than sale.

Community land trust — A nonprofit organization that acquires and stewards land for the long-term benefit of the community by providing permanently affordable housing.

Construction labor — All skilled and unskilled workers engaged in the building, renovation, or demolition of residential structures.

Financing cost — The total cost, including interest, fees, and points, of obtaining a mortgage or construction loan for residential housing.

Housing cost burden — The condition of a household that pays more than 30 percent of its income for housing.

Modular construction — A construction process in which a building is constructed off-site, under controlled plant conditions, using the same materials and to the same building codes as conventional on-site construction.

Prefabrication — The practice of assembling components of a structure in a factory or other manufacturing site and transporting complete assemblies to the construction site.

Secretary — The Secretary of Housing and Urban Development.

Social housing — Rental housing that is owned and managed by a government entity, nonprofit, or housing cooperative with rents set below market rates.

State — Each of the 50 States, the District of Columbia, Puerto Rico, and each U.S. territory.

Structural insulated panel (SIP) — A high-performance building panel consisting of an insulating foam core sandwiched between two structural facings, typically oriented strand board.

Three-dimensional (3d) printing of homes — An additive manufacturing construction process that deposits concrete or composite materials layer by layer to construct residential structures.

Zoning — Local land use regulations that determine where and what type of buildings may be constructed in a given area.

SECTION 2. ENACTING CLAUSE

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Affordable Housing for All Americans Act."

(a)FINDINGS — Congress finds that housing costs have reached crisis levels, with over 40 million American households experiencing housing cost burdens exceeding 30 percent of their income.

(b)PURPOSE — It is the purpose of this Act to establish a coordinated national strategy to reduce the cost of residential housing through financing, material, construction, labor, and regulatory reform.

(c)AUTHORITY — This Act is enacted pursuant to the authority of Congress under Article I, Section 8 of the Constitution of the United States to provide for the general welfare.

(d)SEVERABILITY — If any provision of this Act or its application to any person or circumstance is held invalid, the remainder of this Act and the application of its provisions to other persons or circumstances shall not be affected.

The Congress finds that:

(a) The lack of affordable housing is a national crisis affecting over 12 million severely cost-burdened households in the United States.

(b) The shortage of affordable housing contributes to poverty, homelessness, poor health outcomes, educational disparities, and reduced economic productivity.

(c) The United States ranks 35th among developed nations in housing affordability, far behind comparable nations that have enacted comprehensive housing policies.

(d) High housing costs are driven by a combination of inadequate housing supply, restrictive zoning, high construction costs, high financing costs, insufficient government subsidy, and speculative real estate investment.

(e) Comprehensive federal action is required to address these barriers and ensure that all Americans have access to safe, stable, and affordable housing.

(f) It is the policy of the United States to ensure that no American household spends more than 30% of its income on housing costs.

(g) International best practices from countries including Canada, Australia, England, Norge, Sverige, Suomi, Deutschland, République française, Zhongguo, and Nippon demonstrate that coordinated government action can significantly reduce housing costs and expand housing availability.

SECTION 3. REQUIREMENTS BY GOVERNMENT AGENCIES

(a) Department of Housing and Urban Development (HUD). The Secretary of HUD shall:

(1) Establish a National Affordable Housing Task Force within 90 days of enactment of this Act, composed of representatives from federal, state, and local governments, the construction industry, tenant advocacy organizations, housing finance experts, and civil rights organizations, to develop a 10-year National Affordable Housing Plan;

(2) Increase the annual allocation of Low-Income Housing Tax Credits (LIHTC) by 100% within 2 years of enactment, prioritizing the construction of units for extremely low-income and very low-income households;

(3) Expand the Housing Choice Voucher (Section 8) program by at least 500,000 vouchers annually until all eligible households are served, as required by the original authorization of the program;

(4) Establish a National Modular and Prefabricated Housing Standards Program to develop uniform standards for factory-built housing, in coordination with the International Code Council and the American National Standards Institute, reducing compliance costs for manufacturers operating across state lines;

(5) Administer the National Affordable Housing Fund established under Section 8 of this Act, including the receipt, disbursement, and auditing of funds;

(6) Require all HUD-funded construction projects to utilize Building Information Modeling (BIM) and to give preference to contractors employing modular, prefabricated, or other innovative construction methods that demonstrably reduce costs;

(7) Publish annually a Nationwide Affordable Housing Report Card evaluating the progress of federal, state, and local governments in expanding affordable housing supply and reducing housing cost burden;

(8) Enforce fair housing laws under the Fair Housing Act of 1968 with increased resources, prosecuting discrimination in housing sales, rentals, and financing, and require all recipients of federal housing funds to affirmatively further fair housing.

(b) Department of Treasury. The Secretary of the Treasury shall:

(1) Administer tax incentives for affordable housing construction and preservation established under this Act, including expanded LIHTC allocations, the Affordable Housing Investment Credit, and the Community Investment Tax Credit;

(2) Issue Treasury Department guidance permitting the use of tax-exempt bonds for a broader range of affordable housing projects, consistent with the public purpose of this Act;

(3) Regulate Real Estate Investment Trusts (REITs) and other institutional investors in residential real estate to discourage speculative investment that drives up housing costs, including requiring REITs that hold single-family rental properties to sell a minimum percentage of properties to owner-occupants.

(c) Department of Labor. The Secretary of Labor shall:

(1) Establish a National Construction Workforce Development Program in partnership with the construction industry, community colleges, and labor unions to train 500,000 new construction workers over 5 years, addressing the labor shortage that drives up construction costs;

(2) Review and update Davis-Bacon Act prevailing wage requirements to ensure they do not unnecessarily increase affordable housing construction costs while protecting workers' rights;

(3) Partner with the Department of Education to establish construction trades apprenticeship programs in high schools and community colleges, with priority in communities experiencing high housing cost burdens.

(d) Federal Housing Finance Agency (FHFA). The Director of the FHFA shall:

(1) Require Fannie Mae and Freddie Mac to increase their investments in affordable multifamily housing, including setting a minimum percentage of their total business activity for affordable housing;

(2) Require the Federal Home Loan Banks to increase contributions to the Affordable Housing Program to at least 20% of net income;

(3) Establish a secondary market for social impact mortgage bonds, enabling private capital to be invested in affordable housing at below-market rates in exchange for tax benefits.

(e) Environmental Protection Agency (EPA). The Administrator shall:

(1) Streamline environmental review processes for affordable housing projects on infill sites and brownfield properties, ensuring reviews are completed within 6 months;

(2) Partner with HUD to develop guidelines for environmentally sustainable, cost-effective building materials and construction methods that reduce both the cost and environmental impact of affordable housing.

International Best Practices Incorporated: Requirements in this Section draw upon housing agency models from countries including state housing bank models (Norge, Suomi), non-profit housing developer frameworks (Deutschland, Österreich, Sverige), standardized construction requirements (Nippon, République française), and integrated housing finance systems (Canada, Australia). [Endnote 1]

SECTION 4. REQUIREMENTS BY GOVERNMENT OFFICIALS

(a) The President of the United States shall:

(1) Within 180 days of enactment, issue an Executive Order directing all federal agencies to review their real property holdings and identify surplus federal land suitable for affordable housing development, and to make such land available to state, local, and nonprofit housing developers at no cost or at reduced cost;

(2) Include in the annual Presidential Budget a request for full funding of the National Affordable Housing Fund, the expansion of the Housing Choice Voucher program, and all other programs authorized under this Act;

(3) Appoint, subject to Senate confirmation, a Federal Affordable Housing Coordinator within the Executive Office of the President who shall coordinate the affordable housing activities of all federal agencies and report annually to Congress.

(b) The Secretary of Housing and Urban Development shall:

(1) Appear before Congress annually to report on the state of housing affordability in the United States and the progress made under this Act;

(2) Certify annually that recipients of federal housing funds are in compliance with fair housing requirements and that funds are being used effectively to reduce housing cost burden;

(3) Establish and maintain a publicly accessible National Affordable Housing Data Portal providing real-time data on housing costs, housing supply, vacancy rates, and housing assistance program utilization by state, county, and metropolitan area.

(c) State Governors and Local Officials. States receiving funds under this Act shall, through their governors and relevant state agencies:

(1) Enact or amend state zoning enabling legislation to require local governments to permit construction of multifamily residential buildings and accessory dwelling units (ADUs) in all residential zones, and prohibit exclusionary zoning practices that effectively prevent affordable housing construction;

(2) Establish or strengthen state-level housing finance agencies (HFAs) to issue tax-exempt bonds, administer LIHTC allocations, and provide below-market-rate loans for affordable housing construction;

(3) Adopt statewide building codes based on the International Building Code and International Residential Code, reducing the patchwork of local codes that increases construction costs;

(4) Require municipalities with populations over 10,000 to adopt an affordable housing element in their general plans, identifying sites for affordable housing development and setting production goals.

International Best Practices Incorporated: Requirements in this Section draw upon governance structures from countries including the role of national housing coordinators (UK, Australia), state and municipal housing planning obligations (Canada, Deutschland, République française), and anti-exclusionary zoning laws (Nederland, Sverige). [Endnote 2]

SECTION 5. REQUIREMENTS BY CORPORATIONS

(a) Construction Companies and Developers. Any company receiving federal housing subsidies, tax credits, or other financial benefits under this Act shall:

(1) Employ a workforce that reflects the racial and gender diversity of the community in which the project is located, in compliance with Equal Employment Opportunity (EEO) requirements;

(2) Participate in registered apprenticeship programs with at least 15% of total project labor hours performed by apprentices;

(3) Use building information modeling (BIM) on all projects exceeding $5 million in construction cost;

(4) Prioritize the use of domestically produced materials and, where cost-effective, incorporate modular or prefabricated construction components;

(5) Comply with energy efficiency standards of at least Energy Star or equivalent for all residential construction;

(6) Submit annual compliance reports to HUD documenting construction costs, units produced, affordability levels, and workforce demographics.

(b) Financial Institutions. Banks, credit unions, and other financial institutions that provide residential mortgage financing shall:

(1) Comply with the Community Reinvestment Act (CRA) by investing in affordable housing projects in the communities they serve, with enhanced CRA credit for investments in deeply affordable housing;

(2) Offer affordable mortgage products, including down payment assistance, reduced closing costs, and income-based repayment options for first-time homebuyers with incomes at or below 120% AMI;

(3) Refrain from predatory lending practices, including steering borrowers into high-cost loans when they qualify for conventional mortgage products;

(4) Report annually to the Consumer Financial Protection Bureau (CFPB) on their affordable housing lending activities.

(c) Large Employers. Any employer with 500 or more employees that receives federal contracts or subsidies shall:

(1) Assess and address the housing affordability challenges facing their workforce by conducting an annual Workforce Housing Needs Assessment;

(2) Partner with state and local governments and developers to fund the construction of affordable workforce housing near employment centers, or contribute to a regional affordable housing fund;

(3) Provide housing assistance benefits, including employer-assisted housing programs, down payment assistance grants, or rental assistance for employees earning below 120% AMI.

(d) Real Estate Investment Trusts (REITs) and Institutional Investors. Any entity owning more than 100 single-family residential units shall:

(1) Offer right of first refusal to tenants or tenant organizations to purchase their rental unit at fair market value when the unit is offered for sale;

(2) Limit annual rent increases to the lesser of the Consumer Price Index (CPI) plus 5% or 10% in any 12-month period;

(3) Register all owned residential units with the local housing authority and report annually on rent levels, vacancy rates, and tenant demographics;

(4) Contribute 2% of annual gross rental revenue to a regional affordable housing fund.

International Best Practices Incorporated: Corporate requirements in this Section draw upon obligations imposed on housing developers and financial institutions in countries including developer inclusionary requirements (England, République française), CRA-equivalent bank investment mandates (Canada, Australia), institutional investor regulations (Deutschland, Nederland), and employer housing contribution programs (Zhongguo, Nippon). [Endnote 3]

SECTION 6. REQUIREMENTS BY PRIVATE CITIZENS

(a) Homeowners. Private homeowners are encouraged and shall be incentivized to:

(1) Construct accessory dwelling units (ADUs) on their properties through streamlined permitting, fee waivers, and low-interest construction loans provided under this Act;

(2) Rent ADUs and spare rooms at affordable rents in exchange for tax benefits under the Affordable Landlord Tax Credit established under Section 8;

(3) Participate in community land trust programs that remove land from the speculative market and ensure long-term housing affordability;

(4) Participate in home-sharing programs for seniors and persons with disabilities who need supplemental income to remain in their homes.

(b) Landlords. Private landlords renting residential units shall:

(1) Comply with all applicable fair housing laws prohibiting discrimination based on race, color, national origin, religion, sex, familial status, disability, source of income, and other protected characteristics;

(2) Accept Housing Choice Vouchers in jurisdictions where source-of-income discrimination is prohibited;

(3) Maintain rental units in habitable condition, meeting all applicable health and safety codes;

(4) Provide tenants with written leases, advance notice of rent increases as required by state law, and proper eviction procedures as required by law;

(5) Landlords who participate in federal affordable housing programs must maintain affordability restrictions for the duration of the compliance period and comply with all program requirements.

(c) Community Members. All members of the public are encouraged to:

(1) Participate in local land use planning processes, including supporting approval of affordable housing developments in their communities;

(2) Engage with local government officials and elected representatives to advocate for zoning reforms and housing policies that expand housing access;

(3) Volunteer with and support nonprofit housing organizations, Habitat for Humanity, community land trusts, and other organizations working to expand affordable housing;

(4) Report housing discrimination, code violations, and illegal evictions to appropriate authorities.

International Best Practices Incorporated: Provisions in this Section draw upon homeowner incentive programs (Sverige, Suomi), tenant rights frameworks (Deutschland, Nederland, République française), community participation requirements (Canada, Australia), and community land trust models (England, Norge). [Endnote 4]

SECTION 7. PENALTY CLAUSES

(a) Federal Agencies. Any federal agency that fails to comply with the requirements of this Act, including the timely disbursement of authorized funds, shall be subject to:

(1) Congressional oversight hearings;

(2) Mandatory reporting to the Office of Management and Budget (OMB) and the Government Accountability Office (GAO) on compliance status;

(3) Rescission of unspent appropriations if the agency fails to obligate funds within the required period.

(b) State and Local Governments. States and localities that fail to comply with the requirements of this Act, including the adoption of required zoning reforms and housing plans, shall:

(1) Be ineligible to receive grants under the Community Development Block Grant (CDBG) program and the HOME Investment Partnerships Program until compliance is achieved;

(2) Be subject to a 25% reduction in federal transportation funding if they have enacted or maintained zoning laws that exclude affordable housing from high-opportunity neighborhoods;

(3) Be required to submit a corrective action plan to HUD within 180 days of a finding of non-compliance.

(c) Corporations and Developers. Any corporation, developer, or financial institution that fails to comply with the requirements of this Act shall be subject to:

(1) Repayment of all federal subsidies, tax credits, and other financial benefits received in connection with the non-compliant project, with interest;

(2) Civil monetary penalties of up to $250,000 per violation, per year;

(3) Debarment from participation in federal housing programs for a period of up to 5 years for repeat or egregious violations;

(4) Criminal prosecution under existing federal fraud statutes for intentional misrepresentation of program compliance.

(d) Private Landlords and Individuals. Any private landlord or individual who violates the provisions of this Act or applicable fair housing laws shall be subject to:

(1) Civil penalties as authorized under the Fair Housing Act of 1968, as amended;

(2) Private right of action by aggrieved parties for compensatory and punitive damages;

(3) Injunctive relief requiring compliance with program requirements;

(4) Loss of tax benefits under this Act for violation of affordability restrictions.

SECTION 8. EFFECTIVE DATES AND IMPLEMENTATION

(a) Effective Date. This Act shall take effect on January 1 of the year following enactment, except as otherwise provided.

(b) Immediate Effective Date (90 days from enactment):

(1) The National Affordable Housing Task Force shall be established;

(2) The Federal Affordable Housing Coordinator position shall be established;

(3) The National Affordable Housing Data Portal shall begin development.

(c) Short-Term Implementation (1 year from enactment):

(1) HUD shall publish the National Affordable Housing Plan;

(2) The National Modular and Prefabricated Housing Standards Program shall be established;

(3) States shall begin the process of zoning reform as required under this Act;

(4) The National Construction Workforce Development Program shall begin enrollment.

(d) Medium-Term Implementation (3 years from enactment):

(1) The LIHTC program allocation increase of 100% shall be fully implemented;

(2) The expansion of 500,000 new Housing Choice Vouchers annually shall be underway;

(3) All states shall have adopted qualifying zoning reform legislation or be subject to funding penalties.

(e) Long-Term Implementation (10 years from enactment):

(1) The United States shall have reduced the housing cost burden rate from approximately 49% to below 30% of all households;

(2) All eligible households shall be served by the Housing Choice Voucher program;

(3) The United States shall rank in the top 15 nations globally for housing affordability.

SECTION 9. APPROPRIATIONS AND BUDGETARY NOTES

(a) National Affordable Housing Fund. There is hereby established in the Treasury of the United States a National Affordable Housing Fund. There are hereby authorized to be appropriated to the Fund:

(1) $50,000,000,000 (fifty billion dollars) for fiscal year 2025;

(2) $50,000,000,000 (fifty billion dollars) for fiscal year 2026;

(3) $50,000,000,000 (fifty billion dollars) for fiscal year 2027;

(4) Such sums as may be necessary for fiscal years 2028 through 2034, to be determined based on progress assessments by the GAO.

(b) Housing Choice Voucher Expansion. There are hereby authorized to be appropriated to the Housing Choice Voucher program:

(1) An additional $30,000,000,000 (thirty billion dollars) annually above current authorized levels for each of fiscal years 2025 through 2034.

(c) LIHTC Expansion. The annual LIHTC allocation shall be increased as follows:

(1) By an additional $5,000,000,000 (five billion dollars) annually for fiscal years 2025 through 2034;

(2) With the additional 4% LIHTC allocation bonds increased by a proportional amount.

Not less than $500,000,000 of amounts appropriated under this section shall be allocated to the apprenticeship expansion program under Section 3(d).

(1) $2,000,000,000 (two billion dollars) annually for the National Construction Workforce Development Program for fiscal years 2025 through 2029.

Research and development — Not less than $1,000,000,000 of amounts appropriated under this section shall be allocated to research and development of alternative construction materials and methods under Section 3(c).

(g) Budgetary Notes and Offsets. The Congressional Budget Office shall:

(1) Provide a 10-year budget score of this Act within 60 days of enactment;

(2) The costs of this Act shall be partially offset by: (i) increased revenues from economic activity stimulated by housing construction; (ii) reduced federal expenditures on emergency shelter, homeless services, Medicaid, and other programs associated with housing instability; (iii) a 0.1% excise tax on residential real estate investment trust (REIT) income; (iv) closing tax loopholes that enable excessive depreciation of residential real estate held by institutional investors.

ENDNOTES:

Endnote 1: Housing agency models drawn from

https://www.husbanken.no/english/https://ara.fi/en-UShttps://en.gdw.deNorge (Husbanken): ; Suomi (ARA): ; Deutschland (GdW):

https://www.gov.uk/government/organisations/homes-englandhttps://www.cmhc-schl.gc.ca/enhttps://www.nhfic.gov.auEndnote 2: Governance structures fromUK (Homes England): ; Canada (CMHC): ; Australia (NHFIC):

Endnote 3: Corporate requirements from

https://www.actionlogement.frRépublique française (Action Logement): ;

https://www.ur-net.go.jp/english/Nippon (UR Urban Agency): ;

http://www.mohurd.gov.cnZhongguo (Ministry of Housing and Urban-Rural Development):

Endnote 4: Homeowner and tenant frameworks from

https://www.boverket.se/en/start/Sverige (Boverket): ;

https://aedes.nlNederland (Aedes): ;

https://www.communitylandtrusts.org.ukEngland (Community Land Trust Network):

Frequently Asked Questions

How does the United States rank globally on housing affordability?

The United States ranks 35th out of 35 countries measured, with only approximately 43% of its population having access to affordable housing as of 2023. This places the US near the bottom of developed nations on this measure.

Why is housing so unaffordable in the United States?

The primary causes include a severe shortage of housing supply relative to demand, rapidly rising construction and land costs, restrictive zoning laws that block higher-density development, limited federal investment in social housing, and high interest rates that have priced many buyers out of homeownership.

How many Americans are cost-burdened by housing expenses?

Approximately 49% of US households are considered cost-burdened, meaning they spend more than 30% of their income on housing as of 2023. Additionally, the National Low Income Housing Coalition identified a shortage of 7.3 million affordable rental homes for extremely low-income renters.

What has Singapore done to make housing affordable for its citizens?

Singapore's Housing and Development Board (HDB) provides public housing to over 80% of its population through subsidized flats sold 20-30% below market value. The government uses bulk purchasing of materials, prefabricated construction technology, and allows citizens to use retirement savings through the Central Provident Fund to buy homes instead of taking high-interest loans.

How does Singapore keep construction costs low for public housing?

Singapore uses Prefabricated Prefinished Volumetric Construction (PPVC), which builds entire room modules in factories and reduces on-site labor by up to 30%. Integrated Building Information Modeling (BIM) reduces design errors and lowers costs by an estimated 10-15%, and the HDB negotiates bulk long-term contracts for construction materials.

What financing tools does Singapore use to make homeownership accessible?

Singapore allows citizens to use their Central Provident Fund retirement savings to purchase HDB flats, removing the need for costly commercial loans. The HDB also offers concessionary loans at roughly 2.6% interest, significantly lower than commercial mortgage rates of 3-4%, along with grants of up to SGD 80,000 for first-time buyers and lower-income families.

How much of their income do Americans spend on housing compared to other countries?

U.S. households spend approximately 33% of their income on housing costs including rent or mortgage plus utilities, the highest among the 35 lowest-cost countries studied. This figure has risen steadily from 31% in 2021 to 32% in 2022 and 33% in 2023, according to the U.S. Census Bureau American Housing Survey and BLS Consumer Expenditure Survey.

What are the main reasons housing is so expensive in the United States?

Key drivers include restrictive single-family-only zoning in most cities, a chronic shortage of publicly subsidized housing, high land costs in metropolitan areas, dependence on expensive lumber-frame construction, high financing costs compared to peer nations, and the near-absence of a social or cooperative housing sector.

Which country has the most affordable housing as a share of household income?

India ranks as one of the lowest-cost countries, with households spending approximately 9% of income on housing. However, this reflects both very low average incomes and a large stock of self-built and informal rural housing rather than purely policy-driven affordability.

What is India's main national program for making housing more affordable?

India's primary program is the Pradhan Mantri Awas Yojana (PMAY), launched in 2015 under the Ministry of Housing and Urban Affairs, which delivers 'Housing for All' through subsidies of up to INR 2.67 lakh for economically weaker sections. It also includes a Credit-Linked Subsidy Scheme offering interest subsidies of 3–6.5% on qualifying home loans.

How has India used tax policy to lower housing construction costs?

India reduced the Goods and Services Tax (GST) on affordable housing to just 1%, directly lowering the cost of construction and making new affordable units more financially viable for developers and buyers alike.

Where can I find the data sources used to rank countries by housing affordability?

The rankings draw from the Organisation for Economic Co-operation and Development (OECD) Affordable Housing Database (oecd.org/social/affordable-housing-database.htm), Eurostat EU-SILC 2023, World Bank and United Nations (UN)-Habitat housing finance data (worldbank.org), and the Numbeo Cost of Living Survey (numbeo.com/cost-of-living), covering data years 2022–2023.

About the Author

Ronald Bonfilio has devoted his career to public service spanning more than five decades. His service began with the U.S. Army from 1966 to 1968, where he conducted medical laboratory research at Fort Detrick and at the Walter Reed Army Institute of Research. He subsequently held a distinguished series of federal positions, including roles with the National Cancer Institute, the National Institutes of Health, the U.S. Agency for International Development (Vietnam), the Special Inspector General for Iraq Reconstruction, and the U.S. State Department (Iraq), where he served as a Senior Economic Advisor and Agricultural Advisor. He also served 15 years with the U.S. Government Accountability Office as a Program Analyst and Auditor.

Ronald Bonfilio holds a degree in Economics from the University of Maryland, and degrees in Chemistry and a Master of Business Administration from the University of Massachusetts. He is a former Certified Public Accountant.