Breaking the cycle of poverty and inequality through housing

As leaders gather for the G20 Johannesburg Summit, one issue deserves urgent attention: the global housing crisis. Housing might not be debated with the same urgency as energy or finance, nor does it achieve the spotlight of climate or trade negotiations. However, it is the hidden foundation on which progress on all of these depends.

Today, nearly three billion people live in inadequate housing. More than 1.1 billion people reside in informal settlements and slums, and more than 300 million people experience homelessness globally. This is a crisis not of bricks and mortar but of dignity, safety, health and opportunity.

Without a decent home, children struggle to study, families cannot access clean water and energy, people are excluded from opportunities, and communities remain exposed to climate shocks and health hazards. Inadequate housing often fuels poverty and inequality.

Climate change and conflicts are worsening the global housing crisis. In 2024 alone, the United Nations High Commission for Refugees reported 123 million people were forcibly displaced. In Africa, the number of internally displaced people has tripled in the past 15 years to 35 million, with 60% seeking refuge in already overstretched urban areas.

The good news is that solutions exist – and are already transforming lives. UN-Habitat’s work across regions shows that when housing, land and basic services are prioritised, poverty and inequality are reduced in tangible ways.

Building a better future 

In Mozambique’s Cabo Delgado province, communities have endured the twin shocks of conflict and climate disasters. Thousands of families were displaced, many of them women-led households. UN-Habitat supported the construction of safe homes and trained people in resilient building techniques, equipping women with construction skills. Housing thus became a stepping stone to income generation. Families gained security, income and hope.

The city of Belo Horizonte in Brazil faced the challenge of balancing low-income housing needs with environmental protection. With UN-Habitat’s support, the city developed a Sustainable Urbanization Plan that unlocked more than $40 million in federal funding. Nearly 5,000 vulnerable families gained access to decent housing and local ecosystems were safeguarded. This was made possible by Brazil’s large-scale programmes for informal settlement transformation, the Growth Acceleration Programme and its affordable housing initiative, Minha Casa, Minha Vida (My House, My Life). Housing became a driver of both social equity and climate resilience.

South Africa itself offers powerful lessons. Since the end of apartheid, the country has delivered more than four million subsidised houses and housing opportunities, constituting one of the largest state-led housing programmes. Beyond providing shelter, these investments have stimulated construction industries, generated jobs and contributed to economic growth. Housing policy has been a tool to address historical injustices and the legacy of inequitable ownership and settlement patterns – with efforts to expand access to housing and land for previously marginalised groups, tackle spatial segregation, and advance land reform and redistribution.

Housing as the driver of equity and resilience

All these cases deliver one message – housing is a catalyst. Adequate housing reduces poverty, narrows inequality, and builds resilience to conflict and climate shocks. But to scale up these solutions, political will and investment are essential, and three priorities stand out.

First, housing policy must go beyond building homes or counting units. Adequate housing systems need to integrate infrastructure, mobility and livelihoods. Transforming informal settlements and slums with tenure security and basic services creates conditions for long-term investment and stability. Ignoring them only perpetuates exclusion. Holistic, future-oriented planning is essential. It must look beyond market fixes and housing supply to prioritise equity and accessibility for vulnerable groups defined by income, location or housing status. Anticipating urban growth means promoting compact, mixed-use neighbourhoods that connect people to jobs, services and social life, and avoiding unplanned sprawl that isolates communities and drives up costs. Crucially, it also requires supporting incremental self-help housing, which remains the most common way low-income households improve their living conditions over time.

Second, investment in and support for social, cooperative and community-led housing must grow. These models have proven effective in reaching low-income households but remain underfinanced and scarcely accommodated in administrative and policy frameworks. Governments and international financial institutions should expand policy support and create enabling environments for them to thrive.

Third, multilevel governance is key, as cities are critical for everything we need to achieve. By 2050, 70% of the population will live in cities. Cities produce 70% of emissions and consume most energy. Cities manage housing, land, water, sanitation and mobility. They are also translating global frameworks – the New Urban Agenda and the Sustainable Development Goals – into action. Yet, cities and local government lack resources and authority. Empowering them means tackling challenges where they arise – close to communities – while enabling systemic change, improving public services, driving local economic development and accelerating climate action in partnership with all relevant actors.

Johannesburg is the right place to elevate these messages. As the G20 presidency highlights ‘Solidarity, Equality, Sustainability’, housing must be recognised as a front-line priority. The G20 can amplify these calls by aligning global financing and policy support with local realities.

Housing is not a privilege. It is the foundation of a dignified life. It is the place from which people access health, education, jobs and safety. It is the cornerstone of more peaceful, inclusive, resilient societies.

If we are serious about breaking the cycle of poverty and inequality, there is no better place to start than with a safe, decent and affordable home for all.