ISLAMABAD, (TDI): The housing crisis in Pakistan has reached alarming levels, with a shortage of over 2.1 million homes leaving millions of families and individuals without adequate shelter, according to a recent study by the Academy of Research.
The report reveals that more than 38.3 million people in the country are in desperate need of proper housing, with 2.52 million individuals seeking homes in urban areas.
The research paints a bleak picture, showing that around 13 million people are living in overcrowded conditions, while 10 million families are enduring substandard housing.
Urban centers such as Multan, Quetta, Karachi, and Hyderabad are struggling with the highest and most complex housing shortages. The gap between housing demand and supply has become a pressing issue across the globe, but it is particularly acute in Pakistan.
Nature of Housing Crisis in Pakistan
The country’s rapid population growth, now the seventh largest in the world, is exacerbating the situation.
According to the sixth Housing and Population Census (2017), Pakistan’s population is increasing at a rate of 2.4% annually, with urban populations growing even faster at 2.7%.
By 2030 to 2040, over half of Pakistan’s population is expected to live in urban areas, placing further strain on an already overburdened housing market.
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Current estimates suggest the housing crisis in Pakistan stands at nearly 10 million units, with an annual urban housing gap of 3.5 to 4 million units.
The majority of this shortage is concentrated among Pakistan’s economically weaker populations, with 62% of the deficit affecting lower-income houseolds.
In Punjab alone, the Urban Unit has projected a shortfall of 2.3 million homes, a number that is likely to worsen as household sizes shrink, driving up demand even if the population remains stable.
Affordability is another major concern. The research reveals stark inequalities in access to housing, particularly in Lahore.
Households in the bottom 68% of the income distribution can afford only 1% of available homes, while the wealthiest 12% of households can afford 56% of the housing market.
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This growing disparity is pushing millions into informal settlements, known as Katchi Abadis, where over 47% of urban households live in substandard conditions.
Many others are forced to endure life on the streets, under bridges, or in makeshift shelters.
The situation calls for urgent intervention to address the housing shortage, improve living conditions, and ensure affordable homes for all Pakistanis.
