Main sources of housing for urban poor sub markets

The main sources of housing for the urban poor in submarkets can vary depending on the
country and region. However, here are some common sources of housing for the urban poor in
submarkets:

Informal settlements: Informal settlements, also known as slums, are the most common source
of housing for the urban poor in submarkets. These settlements are usually on land that is not
zoned for residential use and lack basic services such as water and sanitation.
Examples include Dharavi in Mumbai, India, Kibera in Nairobi, Kenya, and Rocinha in Rio de
Janeiro, Brazil.
Informal settlements, also known as slums, are often the main source of housing for the urban
poor in submarkets. Informal settlements are typically characterized by the lack of secure
tenure, inadequate access to basic services such as water and sanitation, and limited or no
access to formal financial services.
In many cities in the developing world, informal settlements have grown rapidly as a result of
urbanization and rural-urban migration. The lack of affordable formal housing and limited
options for securing land or housing through formal channels have led many low-income
families to settle in informal settlements as a means of securing shelter.
While informal settlements are often criticized for their poor living conditions and lack of basic
services, they also provide a sense of community and social support for residents. Some
informal settlements have become vibrant and dynamic neighborhoods, with their own
economies and social networks.
Efforts to improve the living conditions in informal settlements can involve upgrading
infrastructure and services, providing secure tenure, and facilitating access to formal financial
services. In some cases, informal settlements have been integrated into the formal urban fabric
through regularization programs, where residents are granted legal titles to their land or homes
and are connected to basic services.

Public housing: In some countries, the government provides public housing for low-income
families. These housing projects are usually subsidized and can offer affordable rent or
ownership options for the urban poor.
Examples include the Housing and Development Board (HDB) flats in Singapore, social housing
projects in Paris, France, and the affordable housing units built by the New York City Housing
Authority (NYCHA) in the United States.
Public housing can be one of the main sources of housing for the urban poor in some
submarkets. Public housing is often provided by the government or a government agency, and
is intended to be affordable and accessible to low-income families who might not be able to
afford housing in the private market.
Public housing can take many forms, including high-rise apartment buildings, low-rise housing
developments, or individual homes. Often, public housing is built in areas where land values are
low, and there is little demand for private housing. Public housing can also be built in the form
of "social housing," which is typically subsidized rental housing provided to low-income families.
While public housing can provide affordable housing to the urban poor, it is not always a
perfect solution. In some cases, public housing projects have been criticized for poor
management, inadequate maintenance, and safety concerns. Additionally, public housing
projects are often stigmatized as being low-quality and lacking in desirable amenities.
Despite these challenges, public housing remains an important source of housing for the urban
poor in many submarkets. In some cases, public housing agencies are working to improve the
quality of public housing units and to better integrate public housing projects into the
surrounding community.

Microfinance housing: Microfinance institutions can provide loans to the urban poor to build or
improve their homes. This type of housing is often incremental, where families build and
expand their homes as they can afford it.
An example of this is the microfinance housing program run by Grameen Bank in Bangladesh.
Microfinance housing can be one of the sources of housing for the urban poor in submarkets.
Microfinance is a form of financial service that provides small loans to low-income individuals
who may not have access to traditional banking services. Microfinance housing involves
providing loans to low-income families to build or improve their homes, which can help them
secure shelter and improve their living conditions.
Microfinance housing loans can be used for a variety of purposes, including building or
renovating homes, adding on to existing homes, or purchasing land. These loans are often
incremental, meaning that families can build or improve their homes over time as they are able
to pay back their loans. Microfinance housing loans may also come with training and support
services, such as construction training or financial literacy training.
One of the advantages of microfinance housing is that it can empower low-income families to
take control of their housing situation and improve their living conditions. Microfinance housing
loans can be provided by microfinance institutions or by non-profit organizations that specialize
in affordable housing.
However, microfinance housing is not a silver bullet solution, as it relies on the ability of low-
income families to repay their loans over time. Additionally, microfinance housing may not be
appropriate in all contexts, such as in areas with limited access to land or where there is a lack
of demand for formal housing. Overall, microfinance housing can be a useful tool in providing
affordable housing for the urban poor in submarkets, but it is just one of many potential
solutions.

Private rental: Some urban poor families rent rooms or apartments in the private rental
market. While this option can be more expensive than other sources of housing, it can offer
more privacy and better living conditions.
Examples of this include the favelas of Rio de Janeiro, where many families rent rooms in
informal buildings owned by private landlords.
Private rental housing is not typically the main source of housing for the urban poor in
submarkets, as it is often too expensive for low-income families. Private rental housing is
typically offered by landlords who own and manage rental properties, and the rent charged by
these landlords is generally set by market demand.
In many submarkets, low-income families may struggle to find private rental housing that is
affordable and meets their needs. Rental housing in submarkets may be in poor condition or
may lack basic amenities like running water, electricity, or sanitation facilities. In addition,
private rental housing may require a security deposit and regular monthly rent payments,
which can be difficult for low-income families to meet.
While private rental housing is not typically the main source of housing for the urban poor in
submarkets, there are some cases where private rental housing can be a viable option. For
example, some private landlords may offer affordable rental housing in submarkets with low
demand, or in areas where rental prices are generally lower.
Overall, private rental housing is not a primary solution for addressing the housing needs of the
urban poor in submarkets, as it is often too expensive and may not provide the level of security
or basic amenities that low-income families need. Other options, such as public housing,
microfinance housing, or informal settlements, may be more suitable for addressing the
housing needs of the urban poor in submarkets.

Informal rental: In some submarkets, urban poor families may rent rooms or apartments from
informal landlords who own small properties. These landlords may not be registered or
licensed, and the living conditions may be poor.
Examples include the "bedsits" in London, UK, where many low-income renters live in single
rooms in houses that have been divided into multiple units.
Informal rental housing can be one of the main sources of housing for the urban poor in
submarkets. Informal rental housing refers to housing units that are rented out by individual
landlords, typically without any formal lease agreements or legal protections. These housing
units can take many forms, including single rooms, shared apartments, or small houses.

Informal rental housing is often more affordable than formal rental housing, as landlords in the
informal sector may not have the same overhead costs as landlords in the formal sector.
However, informal rental housing may also lack basic amenities like running water, electricity,
or sanitation facilities, and the conditions of the housing units can be substandard.
Despite these challenges, informal rental housing remains an important source of housing for
the urban poor in many submarkets, as it provides a low-cost alternative to formal rental
housing. In some cases, communities of informal rental housing may develop in areas with low
land values, where it is more feasible for individual landlords to rent out housing units.
However, informal rental housing can also be risky for low-income families, as they may not
have legal protections against eviction, substandard living conditions, or rent hikes.
Additionally, informal rental housing may be subject to demolition by local governments or
landowners, leaving families without a place to live.
Overall, informal rental housing can be an important source of affordable housing for the urban
poor in submarkets, but it is not without its challenges. Efforts to improve the conditions of
informal rental housing, provide legal protections for renters, and increase the supply of
affordable formal housing can help address the housing needs of the urban poor in submarkets.

Self-help housing: Some urban poor families build their homes on their own, using materials
they can afford. This type of housing is often informal and can lack basic services, but it can be a
way for families to secure shelter without relying on outside assistance.
Examples of this include the "shantytowns" in South Africa, where families build homes using
corrugated metal and other materials they can find.
Here are some more examples of the main sources of housing for the urban poor in sub-
markets:
Self-help housing can be one of the main sources of housing for the urban poor in submarkets.
Self-help housing involves low-income families building their own homes or improving their
existing homes with their own labor and resources, with support from government or non-
governmental organizations.
Self-help housing can take many forms, including sweat equity, where families contribute their
own labor to build their homes, or assisted self-help housing, where families receive technical
assistance, training, and materials to build their homes. Self-help housing can also involve
incremental housing, where families build their homes in stages as they have the resources to
do so.
Self-help housing can provide several advantages for low-income families, including greater
control over their housing conditions and a sense of pride in ownership. Self-help housing can
also be more affordable than formal housing, as families can use their own resources and labor
to build their homes.
However, self-help housing also has some challenges. It can be time-consuming and labor-
intensive, requiring families to devote significant time and effort to building their homes. In
addition, self-help housing may not be appropriate for all families, particularly those who lack
the skills or resources to build their own homes.
Overall, self-help housing can be an important source of affordable housing for the urban poor
in submarkets, particularly when combined with support from government or non-
governmental organizations. Self-help housing can help low-income families secure shelter and
improve their living conditions, while also promoting a sense of community and self-sufficiency.

Community land trusts: Community land trusts (CLTs) are non-profit organizations that own
and manage land and housing units for the benefit of the community. Examples of CLTs include
the Dudley Street Neighborhood Initiative in Boston, USA, and the London Community Land
Trust in the UK.
Community land trusts can be one of the main sources of housing for the urban poor in
submarkets. A community land trust is a non-profit organization that owns and manages land
for the benefit of a specific community. The community land trust may lease or sell the land to
low-income families or individuals, while retaining ownership of the underlying land.
Community land trusts can provide several advantages for low-income families in submarkets.
By owning the land, the community land trust can ensure that the housing units are
permanently affordable and that the residents have a say in the management of the land.
Community land trusts can also provide additional services, such as financial counseling or
home repair assistance, to help low-income families maintain their homes.
However, community land trusts also have some challenges. They require significant resources
to establish and manage, and may require ongoing support from government or philanthropic
organizations. Additionally, community land trusts may face opposition from local governments
or landowners who are reluctant to cede control of land to non-profit organizations.
Despite these challenges, community land trusts have been successful in providing affordable
housing for the urban poor in submarkets. Community land trusts can help to address the
shortage of affordable housing by providing permanently affordable housing units and
supporting low-income families in accessing and maintaining homeownership. Community land
trusts can also help to build stronger communities by providing a sense of community
ownership and control.

Cooperative housing: Cooperative housing is a form of collective ownership where residents

own and manage their own housing units. Examples of cooperative housing include the "habitat
cooperatives" in Buenos Aires, Argentina, and the "Baumhaus" housing cooperative in Berlin,
Germany.
Cooperative housing can be one of the main sources of housing for the urban poor in
submarkets. Cooperative housing involves a group of individuals or families pooling their
resources to collectively own and manage a housing unit or building. Each member of the
cooperative has an equal say in the management of the housing unit, and the members are
responsible for making decisions about maintenance, repairs, and other issues.
Cooperative housing can provide several advantages for low-income families in submarkets. By
pooling their resources, members of the cooperative can access housing units that might
otherwise be unaffordable. Cooperative housing can also provide a sense of community
ownership and control, as members work together to manage and maintain the housing unit.
However, cooperative housing also has some challenges. It can be difficult to establish and
manage a cooperative, particularly in submarkets where the community may lack experience or
resources. Additionally, cooperative housing may require significant ongoing maintenance and
repair costs, which can be challenging for low-income families to manage.
Despite these challenges, cooperative housing has been successful in providing affordable
housing for the urban poor in submarkets. Cooperative housing can help to address the
shortage of affordable housing by providing low-income families with access to affordable
housing units that are collectively owned and managed. Cooperative housing can also help to
build stronger communities by promoting a sense of community ownership and control, and by
providing opportunities for members to work together to improve their living conditions.

Social housing partnerships: Social housing partnerships involve collaboration between the
government, private sector, and non-profit organizations to provide affordable housing for low-
income families. Examples of this include the "Social Housing Finance Corporation" in the
Philippines and the "Social Housing Authority" in Jordan.
Social housing partnerships can be one of the main sources of housing for the urban poor in
submarkets. Social housing partnerships involve collaboration between the government, non-
governmental organizations, and private sector organizations to provide affordable housing for
low-income families.
Social housing partnerships can take many forms, including public-private partnerships,
community land trusts, and joint ventures between non-profit organizations and private
developers. These partnerships can provide several advantages for low-income families in
submarkets, including access to affordable housing units, additional support services, and
opportunities for community involvement and control.
However, social housing partnerships also have some challenges. They require significant
coordination and collaboration between different organizations, and may be subject to political
or economic pressures that can impact their long-term sustainability. Additionally, social
housing partnerships may not be appropriate for all low-income families, particularly those who
may not meet the eligibility requirements for social housing programs.
Despite these challenges, social housing partnerships have been successful in providing
affordable housing for the urban poor in submarkets. Social housing partnerships can help to
address the shortage of affordable housing by leveraging the resources and expertise of
different organizations to provide affordable housing units and support services. Social housing
partnerships can also help to build stronger communities by promoting a sense of community
ownership and control, and by providing opportunities for residents to participate in the
management and maintenance of their housing units.

Transitional housing: Transitional housing provides temporary housing and support services to
families experiencing homelessness or housing insecurity. Examples of transitional housing
programs include the "Family Shelter Service" in Chicago, USA, and the "L'Abri en Ville"
program in Montreal, Canada.
Transitional housing can be one of the sources of housing for the urban poor in submarkets.
Transitional housing is a type of temporary housing that is designed to provide a safe and stable
living environment for individuals and families who are experiencing homelessness or other
housing crises.
Transitional housing can provide several advantages for low-income families in submarkets,
including access to safe and stable housing during times of crisis, and opportunities for
residents to receive additional support services and resources to help them transition to more
permanent housing. Transitional housing may also be more affordable than traditional rental
housing, which can be helpful for families who are struggling to make ends meet.
However, transitional housing also has some challenges. It is typically temporary and may not
provide a long-term solution to housing insecurity. Additionally, transitional housing may be
subject to funding constraints, which can impact the availability and quality of the housing
units.
Despite these challenges, transitional housing can be a valuable source of housing for the urban
poor in submarkets. Transitional housing can help to address the immediate needs of families
who are experiencing housing insecurity and can provide a foundation for more stable housing
in the future. Additionally, transitional housing can help to connect residents with additional
resources and services, such as job training, education, and health care, which can help them to
achieve greater stability and independence over time.

Habitat for Humanity: Habitat for Humanity is a non-profit organization that helps low-income
families build and improve their homes. Habitat for Humanity has projects in many countries
around the world, including the United States, India, and South Africa.
Habitat for Humanity is a non-profit organization that is dedicated to providing affordable
housing to families in need. Habitat for Humanity builds and renovates homes using volunteer
labor and donated materials, and sells the homes to low-income families at an affordable price,
often with a zero-interest mortgage.

Habitat for Humanity can be one of the sources of housing for the urban poor in submarkets.
Habitat for Humanity typically targets families who are living in inadequate or unsafe housing,
and who have incomes that are too low to qualify for traditional mortgages or rental housing.
Habitat for Humanity can provide several advantages for low-income families in submarkets.
These advantages include access to safe and affordable housing, opportunities for community
involvement and control, and a sense of pride and ownership in the homes that they help to
build or renovate.
However, Habitat for Humanity also has some challenges. It may not be able to meet the
demand for affordable housing in some submarkets, and the organization may face difficulties
in finding suitable land and materials for construction. Additionally, Habitat for Humanity may
not be appropriate for all low-income families, particularly those who may not be able to meet
the eligibility requirements for the organization's programs.
Despite these challenges, Habitat for Humanity has been successful in providing affordable
housing for the urban poor in submarkets. Habitat for Humanity can help to address the
shortage of affordable housing by leveraging volunteer labor and donated materials to build or
renovate homes. Additionally, Habitat for Humanity can help to build stronger communities by
promoting a sense of community ownership and control, and by providing opportunities for
residents to participate in the construction or renovation of their homes.
Slum upgrading: Slum upgrading programs involve improving the living conditions of informal
settlements through the provision of basic services such as water and sanitation, as well as the
construction of new housing units. Examples of slum upgrading programs include the
"Kampung Improvement Program" in Jakarta, Indonesia, and the "Slum Networking Project" in
Mumbai, India.
Slum upgrading is a process of improving the physical and social conditions of informal
settlements, also known as slums, in urban areas. Slum upgrading can involve a range of
interventions, such as providing basic services like water and sanitation, upgrading housing
structures, and improving access to education and healthcare.
Slum upgrading can be one of the sources of housing for the urban poor in submarkets. By
improving the living conditions of residents in informal settlements, slum upgrading can help to
provide safe and healthy living environments, increase access to basic services, and enhance
the overall quality of life for residents.
Slum upgrading can provide several advantages for low-income families in submarkets. These
advantages include access to improved housing conditions and basic services, opportunities for
community involvement and control, and a sense of pride and ownership in their communities.
Slum upgrading can also help to prevent forced evictions, which can be traumatic and
disruptive for families.
However, slum upgrading also has some challenges. It can be a complex and expensive process,
and may require significant investments in infrastructure, housing, and social services.
Additionally, slum upgrading may face opposition from those who see it as encouraging the
growth of informal settlements or rewarding illegal settlements.
Despite these challenges, slum upgrading has been successful in improving the living conditions
of the urban poor in submarkets. Slum upgrading can help to address the immediate needs of
families living in informal settlements, while also providing a foundation for more long-term
and sustainable housing solutions. By involving residents in the planning and implementation of
slum upgrading programs, the process can also help to build stronger and more resilient
communities.