World Leaders Discuss Solutions to Global Housing Affordability Crisis
Most of the developed world is experiencing a housing affordability crisis as land becomes more scarce, workers become harder to find, and home prices and rents soar.
Many countries are dealing with the issue within their borders. But at a meeting of housing ministers from Group of Seven (G7) countries in November, specific unifying principles were discussed and recommendations were published.
The G7 is an intergovernmental political forum comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the U.S.
The meeting in Italy was formally the G7 Ministers' Meeting on Sustainable Urban Development. While much of the meeting focused on development in urban centers with an eye to climate change, all participating countries recognized that housing affordability is a key principle for sustainable urban centers.
In 2023, at NAHB's urging, housing affordability was included as a key principle in urban development. At the most recent meeting, the recommendations for addressing the issue were expanded.
Some of the suggested steps that national governments can take to address housing affordability include:
- Providing low-cost financing to support the construction of rental housing projects;
- Investing in protecting existing community housing and affordable housing stock;
- Offering rental supports assistance for low-income households;
- Promoting non-profit housing initiatives;
- Encouraging innovation in housing construction and design; and
- Improving regulatory guidelines to speed up the construction of quality housing.
The recommendations largely mirror the policy agenda NAHB has been pushing in the U.S. through its 10-point blueprint for housing. While NAHB's advocacy work is primarily focused on housing policy in the U.S., we are still actively working to make housing affordability a top priority for global leaders.