Housing Prices Continue to Soar in Many Countries Around the World

IMF research indicates that low interest rates contributed to the boom in house prices, as did policy support provided by governments and workers’ greater need to be able to work from home. In many countries, including the United States, online searches for homes reached record levels. Along with these demand factors, house prices also increased as supply chain disruptions raised the costs of several inputs into the construction process.

What led to global housing crisis and how to fix it

Lack of affordable housing forces low-income workers to live farther away from their jobs, "requiring long and costly commutes and reducing productivity," Moody's Analytics says in its study.

The world needs to build 96,000 new affordable homes every day to house the estimated 3 billion people who will need access to adequate housing by 2030, UN-Habitat says.

The organisation says its advice has helped 43 countries improve their housing policies.

World Bank Urban Development Website

Today, some 56% of the world’s population – 4.4 billion inhabitants – live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050, at which point nearly 7 of 10 people will live in cities.  

With more than 80% of global GDP generated in cities, urbanization can contribute to sustainable growth through increased productivity and innovation if managed well. 

Innovative Revenues for Infrastructure (IRI)

Commercial Value Capture (CVC):

CVC can be a way for governments to increase revenues to fund facility improvements, expand services and/or asset maintenance without increasing taxes or user fees. CVC revenues have, in many instances, proven to be successful in mobilizing additional funding for various infrastructure projects and help deliver better quality of public service. However, optimism bias and over-reliance on CVC revenues could also result in project delays or cancellation. 

The Municipal Public-Private Partnership Framework - Module 17: Capturing Commercial Value

PPP can provide a useful mechanism to mobilize commercial revenues to fund public services. To replace some or all of the public funding that would otherwise be needed to make a project viable, the project can generate commercial revenues. Such commercial revenues can be mobilized for many PPP projects, alongside or linked to public services.