URBANIZATION

Urbanization is the process through which cities grow, and higher and higher percentages of the
population come to live in the city. According to the United Nations (UN), approximately 55% of
whom lived in urban areas as of 2018. This percentage is expected to grow to 68% by 2050, adding
about 2.5 billion people to urban areas around the world. It is also projected that 90% of this
increase will take place in Asia and Africa.

Migration

Migration refers to movement from one country, locality, [and] place of residence to settle in
another. Migration has always been one of the forces driving the growth of urbanization, bringing
opportunities and challenges to cities, migrants and governments.

HOUSING CRISIS
A housing crisis refers to a situation in which there is a severe shortage of affordable, safe,
and adequate housing for a significant portion of the population. The housing crisis could
impact 1.6 billion people by 2025, the World Bank says. 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.

DOES AN INFLUX OF MIGRANTS LEAD TO HOUSING CRISIS IN URBAN AREAS?

Urbanization leads to higher population density in cities, as more people settle in limited
geographical spaces. The concentration of people in urban areas puts pressure on existing
infrastructure, including housing.

Urbanization and migration create a higher demand for housing in urban areas.

Limited available land, limited funds and slow development process for housing schemes
limits the supply of housing.

This increases the prices of the the housing which creates housing crisis. House prices
globally have risen at their fastest rate for 40 years as demand has surpassed supply,
according to research from financial services firm JP Morgan.