Hong Kong and Nigeria both struggle with housing for different reasons

What you probably already know: Communities across the globe are in urgent need of affordable and safe housing. The United Nations Human Settlements Programme estimates that 3 billion people — about 40% of the world’s population — will need access to adequate housing by 2030. To meet that demand, 96,000 new affordable and accessible housing units would need to be created every day. Getting ahead of this public crisis requires innovation from governments, developers, the private sector, and communities, but every region has unique factors to consider in the process.

Why? Hong Kong is one of the most densely populated regions in the world. It covers about 430 square miles, but only about 25% of the land is developed for human use. With a population of over 7 million people, the average living space of public rental housing in Hong Kong is just 45.6 square feet per person. Housing in Hong Kong may be Lilliputian by American standards, but Ada Fung, former deputy director of housing for the Hong Kong Housing Authority, said building high-rise, high-density buildings is the solution for such a large number of people. “It is simple, compact, no frills, and up-to-modern standards… and it is a cornerstone to ensure our city's social cohesion and stability,” she said at the recent International Women’s Forum World Leadership Conference in Seattle.

Housing looks very different on the other side of the world in Nigeria. Despite having a population of about 228 million people, less than 10% of the land is formally documented with government-issued titles. Olajumoke Akinwunmi, co-founder of an impact investment firm advocating for gender equity, financial inclusion, and sustainable housing across Africa, said complex, decades-old laws have made property ownership difficult in Nigeria. Akinwunmi pointed to a lack of financing options, citing a 2020 study that revealed the nation had less than 500,000 mortgages. Nigeria would need to build about 700,000 housing units every year to keep up with demand, but currently produces less than 100,000. “Because the market hasn't been exciting or interesting for large-scale developers, we have hundreds of small developers… that fragmented market already presents its own unique problem,” said Akinwunmi.

What it means: In Nigeria’s case, Akinwunmi sees housing, land ownership, and financial gaps as opportunities. She said the nation’s 36 states that own the majority of the land are making progress in addressing supply and demand issues. “We've seen state initiatives really embrace the idea of creating a more transparent market,” Akinwunmi said. “We've seen urban policy reforms at the state level, rather than at the center and then filtering down to the states, because that hasn't worked. We've seen an embrace of green construction, modular construction as well, and some really strong public-private partnerships that have started to make a big difference.”

What happens now? In Hong Kong, the public housing system “is not only a social safety net, it's also the economic backbone,” Fung said. Tenants there spend 10% of their income on subsidized rental housing (about 20% of the average rental market), meaning they have more to spend on consumer goods. “This is economic activity and vitality from the bottom up,” Fung said. Hong Kong’s public housing system also has systems in place to allow renters to “age in place,” according to Fung. Making public housing truly affordable for low- and middle-class workers helps close gaps in social and financial inequalities, she said, which ensures a more stable society and economy.