Professional Documents
Culture Documents
COUNCIL ON CITIES
Reshaping affordability:
interventions for inclusive
and livable cities
COLLECTION OF INSIGHTS
JANUARY 2024
Images: Getty Images, Unsplash
Contents
Executive Summary 3
1 Land use 5
How Lisbon and other cities around the world are tackling the 9
affordable housing crisis
2 Sustainable communities 16
3 Inclusive design 27
How big data and local politics can make our cities more inclusive 33
Disclaimer
This document is published by the World Economic
Forum as a contribution to a project, insight area
or interaction. The findings, interpretations and
conclusions expressed herein are a result of a
collaborative process facilitated and endorsed by
the World Economic Forum but whose results do
not necessarily represent the views of the World
Economic Forum, nor the entirety of its Members,
Partners or other stakeholders.
In the World Economic Forum’s Global Risks backed by an 800-million-euro public investment
Report 2023, the cost of living crisis was the plan, and offers insights for fellow city leaders in
#1 risk for world leaders over a 2-year period. How Lisbon and other cities around the world are
tackling the affordable housing crisis. In Public land
The urban affordability crisis is widespread and and commercial investment can drive affordable
multifaceted, highlighting systemic injustice and housing and workspace, Places for London’s Emma
deepening inequities for the 56% of the global Hatch and Opportune Simon demonstrate another
population that calls cities home today. It refers approach to boost affordable housing supply
both to the increasing difficulty that many people taken by Transport for London: the development
face in finding affordable housing in urban areas and of a property company to leverage underutilised
the rising cost of living, especially for basic services, public land for affordable housing development,
including water, sanitation, energy, transportation, small business space, and low carbon transport
and healthcare. infrastructure.
The urban affordability crisis exacerbates urban Housing cannot be planned in isolation. Mobility
inequities by pushing vulnerable populations, and economic opportunity – access to jobs – is
including low-income households, migrants, critical when planning affordable and accessible
youth, elderly, and minorities, into precarious, cities, requiring the integration of land use,
overcrowded, or unsafe living situations. transportation, infrastructure, economic, and
Unsurprisingly, these areas have inadequate access housing planning. Sameh Wahba and Shin-pei Tsay
to employment and education opportunities, discuss planning and sequencing of housing and
healthcare, and green spaces. mobility investments, leveraging innovative financing
mechanisms, and utilising technology to bridge
With more than 1.8 billion people worldwide gaps in service delivery in The way to sustainable
lacking adequate housing, and over 70 percent cities is through transport and housing – this is how
of the urban population in developing countries we get there. Mayor Daniella Levine Cava and
underserved by municipal services, it is urgent Steven Lewis use case examples from London
that we advance scalable interventions backed by and Miami-Dade to show how transit-oriented
concrete insights for city leaders to address the communities can mobilize public and private
urban affordability crisis. resources to improve affordability and support
social, economic, and climate resilience goals in
This year, the World Economic Forum’s Global Future diverse urban contexts in London to Miami-Dade:
Council on the Future of Cities has decided to put an integrated approach to developing equitable and
urban affordability front and center. This collection thriving communities.
of articles provides an overview of powerful ideas
on land use, sustainable communities, and inclusive Sustainable urban development necessitates
design to make cities affordable. the consideration of social, economic, and
environmental well-being. In Greening cities as
Access to adequate housing and basic services a pathway to affordability, Aziza Akhmouch and
is fundamental to affordable and accessible cities. Lord Mayor Sally Capp demonstrate concrete
This starts with investing in formalising informal strategies for fostering resilient and affordable urban
housing for the one in eight people who live in living amidst climate challenges. Maimunah Mohd
slums worldwide. Jonathan Reckford and Mayor Sharif and Amr Al Madani discuss the importance
Yvonne Aki-Sawyerr outline this challenge in of centering local culture, historic preservation,
Informal settlements are growing worldwide – managing economic pressures, and mitigating
here’s what we need to do. environmental impacts in locales that rely on tourism
in their essay Turning tourism into local development:
This is a story of multiple As: Housing must be mitigating risks and leveraging heritage assets.
more than affordable but also accessible, adequate,
adaptable, and available. Affordable and accessible cities must be inclusive.
Diana Rodríguez Franco and Ann Aerts show how
Principally, we must increase the supply. Mayor diverse stakeholders have leveraged data and
Carlos Moedas shows how Lisbon aims to re- urban planning and design to target interventions to
establish affordable housing supply and living vulnerable populations to improve health outcomes
conditions with a multi-dimension approach of in How cities can leverage proximity and density to
short-term solutions and long-term investments, tackle health inequities. Mayor Soichiro Takashima
Key Highlights
56%
of the global population resides in cities
1.8bn
people worldwide are lacking
adequate housing
70%+
of the urban population in
developing countries are
underserved by municipal services
Improving informal More people than ever before are living in slums
settlements is essential or other informal settlements. This isn’t just a
to make progress on Jonathan T.M. Reckford
Chief Executive Officer, global scale problem, though — it’s also a global
the SDGs.
Habitat for Humanity scale opportunity.
Credit: REUTERS/ International
Niharika Kulkarni The number of people living in slums or other informal
settlements has grown by 165 million in the past 20
years, bringing the total to nearly 1.1 billion.
This has already happened on a large scale in But microloans aren’t enough in countries such
countries such as Honduras, where civil society as Sierra Leone, where the estimated cost of
$6-7.5Bn organizations and municipal governments came
together to form diverse commissions that
turning the country’s more than 800,000 housing-
deprived households into adequate shelter is USD
is the estimated cost developed policy recommendations around $6-7.5 billion. The interest rates for mortgages
to provide more than
housing and land, negotiating approval of the from commercial and state-owned banks is high,
800,000 housing-
deprived households recommendations and then monitoring their limiting opportunities to finance for affordable
in the country with implementation. Through their advocacy and housing. To finance affordable housing, the City
adequate shelter. technical assistance, more than 1 million people Council and other agencies will need to work with
have improved access to their land rights. private developers in identifying more economically
sustainable solutions such as part-ownership
In Freetown, addressing tenure security in informal or rent-to-buy schemes, giving tenants more
settlements is a challenge, as local land use affordable payment terms of 10–15-year periods.
planning is under the authority and control of
the national government. It is imperative that the
national authorities empower municipal officials Strengthen climate-
to govern land titling and housing standards. This
collaborative approach would tenure security and
resilient housing
access to basic services in informal settlements,
such as clean water and sanitation systems. Informal settlements are highly vulnerable to the
impacts of climate change. The public and private
Freetown City Council has convened a consortium sectors can work together to support and invest
of NGOs under the Transforming Lives programme in community start-ups specializing in low-cost,
to address the affordable housing crisis in the city. climate-resilient homes and locally sourced building
The consortium, led by Catholic Relief Services, are materials. For example, an NGO based in Sierra
focusing their combined effort in two of the most Leone, Home Leone, has over the past 5 years
vulnerable communities prone to flooding events. been developing affordable housing utilizing
This work aims to improve infrastructure services low-cost construction techniques, and providing
in these settlements, addressing land tenure for facilities to meet the basic needs of communities
existing residents and the provision of higher and an integrated approach to housing
density housing on sites at lower risk to flooding. development for low-income communities.
– Housing prices between 2012 and Since 2021, Lisbon has adopted an innovative
2022 have increased by 120% in the multi-dimension approach, putting in place both
Portuguese capital. short-term solutions and long-term investments.
The strategy is backed by an 800-million-euro
– Since 2021, Lisbon has adopted an public investment plan for the 2022-2028 period,
innovative multi-dimension approach the largest in 30 years.
of short-term solutions and long-term
investments backed by an 800-million- In less than two years, this new vision has already
euro public investment plan for 2022- shown results:
2028, the largest in 30 years.
– The city has seen early success with its – The City Hall has built and renovated over
strategy to revamp affordable living for 1500 homes for medium- and low-income
the local population and has recently people (versus only 17 apartments per year in
approved a new Municipal Housing the past 14 years).
Charter offering a set of key principles
to channel both public and private real – A new program was set in place to renovate
estate investment into tackling the 2000 vacant flats in 11 boroughs, with a
housing crisis. 142-million € investment.
idbrooke, a
K Around the world, the urban affordability crisis has
development with been steadily deepening. In cities with open market
partner Notting Emma Hatch economies, homes and small business premises
Hill Genesis, Head of ESG, are becoming increasingly unaffordable. Rapid
February 2023. Places for London population growth combined with expanded profit-
Credit: Transport maximizing property investment has outstripped
for London the ability of many public authorities to plan for
balanced growth and build sufficient affordable
housing or workspace.
$2Bn
was invested by
to foster a new generation of public transport users
through well-planned mixed-use densification,
large-scale decarbonization of the built environment
development can help pay for the transport.
The Piccadilly and Metropolitan lines were
financed initially in such a way, as were the
Transport for London and high-affordability requirements. It has identified more recent Dockland Light Railway, Jubilee
(TfL) in creating a capacity for 20,000 homes with the ambition to Line Extension, the Northern Line Extension
Places for London, start on these sites by 2031. and the Elizabeth Line.
a property company
that is wholly owned This formula builds upon three established traditions Publicly owned property
yet financially in successful public-interest property development:
independent of TfL. for urban affordability
– Transport-oriented development. There is a
precedent of public transport and infrastructure Many public authorities own real estate in cities.
authorities in other global cities having densified However, deliberately switching the portfolio
public land uses by developing transport- towards affordable homes and small business
connected homes, offices and districts. The space near transport hubs creates a more
Port Authority of New York & New Jersey, affordable and inclusive city with greater use of
Mass Transit Railway in Hong Kong and JTC sustainable public transport.
Corporation in Singapore have all adopted
this approach. To achieve accessibility and affordability, Places for
London will rebalance its portfolio over the next 10
– Cathedral-thinking in a metropolis. London years with significant increases in the proportion
has a strong tradition of the “Great Estates.” of income coming from residential and commercial
These are large-scale property portfolios with office space, with commensurate falls in the
a single owner who can take a long-term proportion coming from car parking and retail.
2023 2033
2% 9%
14%
13% 34%
2%
45%
22% 16%
3%
13% 15%
15%
Source: https://www.placesforlondon.co.uk/
Bridge service delivery gaps and share However, no technological solution can solve
information via technology problems for cities that don’t approach inclusion,
livability, connectivity and sustainability holistically
Technology and mobility platforms fill gaps in when making planning, infrastructure and service
infrastructure and service networks while cities delivery decisions.
iami-Dade and
M London, but London is a dense urban environment
London offer case with seemingly nowhere left to build and a complex
studies for how diverse transportation network.
communities can Steven Lewis
leverage TOCs. Global Head of Insight, JLL
Both locales have found success with innovative
Credit: Miami-Dade and context-dependent transit-oriented
County
communities (TOCs) to deliver much-needed
housing and transportation. These efforts
have sought to address local sustainability
and equity goals.
Daniella Levine Cava While TOCs are not new, they need to be scaled
Mayor, Miami-Dade County up dramatically to meet the new density, resilience
and affordability demands of today. TOCs must
now be considered holistically through innovative
funding mechanisms, integrated land-use and
transport planning, public private partnerships,
and streamlined planning processes that reduce
– Transit-oriented communities can completion times.
combat the affordability crisis by
delivering much-needed housing and
transportation. A burgeoning Miami-Dade
– Successful TOCs mobilize public and
private resources, while supporting Miami-Dade County consists of 34 individual cities.
economic, social and climate resilience As a county, it operates within the complex US
goals of the locale. federal and state system that has at times slowed
its ability to advance affordable transportation and
– Miami-Dade and London offer case housing infrastructure.
studies for how diverse communities
can leverage TOCs to achieve local To combat the economic impacts of traffic
sustainability and equity goals. congestion and the existential threat of climate
change, Miami-Dade County is working to direct
growth into mixed-use urban centres that are
Miami-Dade County, where one of us is Mayor, walkable, connected by premium transit corridors,
has developed with a pattern of urban sprawl less vulnerable to the impacts of storms and sea
flanked by protected environmental areas. The level rise, and include land use patterns that reduce
county is facing an affordability crisis; it boasts a emissions and promote energy efficiency.
limited public transit network and lacks sufficient
affordable housing to accommodate its burgeoning The recently implemented Strategic Miami Area
population and growing economy. So too does Rapid Transit (SMART) program identifies corridors
The county recently enacted new policies to Earlier this year, Miami-Dade County also unveiled
encourage more TOCs across the 34 municipalities a new flagship TOC, called the Link at Douglas.
245.7k
and unincorporated area, bringing with them This 7-acre master-planned development has
affordable and workforce-oriented units. Miami- transformed Miami-Dade County’s Douglas Road
Dade is also advancing the Better Bus Network Metrorail Station into a mixed-use transit hub. The
average weekday (BBN), a reimagined bus service that prioritizes project’s first phase includes two residential towers
riders have been
improved transit services with greater frequency for with a total of 733 apartment units anchored by
reached by Miami-
Dade Transit, marking more people, and was co-created with both public a locally owned supermarket. This new public-
a 101% recovery and private community stakeholders such as Transit private sector partnership also includes more than
from pre-COVID Alliance Miami. $17 million in public infrastructure improvements,
levels across all four including a fully renovated Metrorail station, and
transit modes. the development of a public plaza that connects
with a section of a countywide linear park.
attersea Power
B
Station pre- and
Transit as a tool for urban development near Central London, providing
a location adjacent to rapid population and
post-regeneration, regeneration employment growth.
Southwest London.
For over 30 years, the iconic Battersea Power Confronting high land costs and the need to
Station sat unused in Southwest London. Along connect an area without rapid transit to existing
with it, the greater Battersea area was left infrastructure, the Greater London Authority created
behind and lacked core infrastructure to support an Enterprise Zone which allowed them to borrow
community regeneration. This was one of the last nearly £1 billion to finance the extension of the
remaining areas readily available for large-scale London Underground’s Northern line to two new
rban greening
U Cities are deeply affected by climate change and
initiatives, like Melboure’s are an essential part of the solution. Cities and
Skyfarm, support Aziza Akhmouch
Head of Cities, Urban regions implement mitigation and adaptation
affordability goals.
Policies and Sustainable strategies, accounting for 63% of climate-significant
Development, OECD public expenditure (1.1% of GDP) and 69% of
climate-significant public investment within the
OECD member countries. Cities typically oversee
critical policy domains that influence climate
outcomes, such as land use planning, water,
housing, transport and environmental protection.
Sally Capp For this reason, more than 200 cities from across
Lord Mayor of OECD countries, including Melbourne, have already
Melbourne, Australia set ambitious pledges to reduce greenhouse gas
emissions (GHGs) to achieve net-zero carbon
emissions in the coming decades. As the OECD
works with mayors who are taking a stand against
rising urban inequality, such climate action is
– Urban agglomerations are responsible prioritised for its co-benefits and high cost of inaction.
for about 70 percent of greenhouse gas
emissions, half of solid waste production, Melbourne’s work to invest in greening buildings,
and two-thirds of energy consumption. food and public spaces has yielded promising
results in addressing affordability.
– More than 200 cities within the
OECD - an international organisation
of 38 countries committed to build Greening buildings to reduce
better policies for better lives - have
set ambitious pledges to reduce energy costs
greenhouse gas emissions and achieve
net-zero in the coming decade. Buildings account for approximately 28% of total
final global energy consumption, three-quarters
– One such city is Melbourne, which is of which could be easily conserved through
investing in greening buildings, food, and better insulation, ventilation and delivery systems.
public space in order to decarbonize but Acting on energy-efficiency renovation is therefore
also ease the urban affordability crisis. expected to both reduce energy poverty and
increase energy affordability. In addition, it is
estimated that €190 billion have been saved on
Covid-19 and the subsequent shocks – including public health expenditures in Europe by improving
the energy, food and cost-of-living crises spurred indoor air quality through building decarbonisation.
by Russia’s war on Ukraine – have exacerbated
longstanding structural challenges in cities, such as More than 60% of emissions in Melbourne comes
inequalities, housing quality and affordability, traffic from commercial buildings. To reach net-zero
congestion and climate-damaging practices. emissions by 2040, Melbourne needs to retrofit over
80
buildings retrofitted
existing office buildings in central Melbourne.
The CitySwitch programme supports tenants in
19% of all Australian office spaces. In 2021, it saved
OECD’s work shows that while keeping food on
the table, cities can help tackle global hunger,
annually in Melbourne over AUD 62 million in energy costs and 760,000 provide decent jobs and reduce carbon emissions,
will boost the tonnes of CO2 through energy efficiency, carbon thereby showing a win-win outcome between
economy by AUD 2.7 offsets and renewables. greening and affordability.
billion, create 12,000
jobs, and cut energy Finally, the city has proposed new energy efficiency,
costs by AUD 184
million per year.
heat resilience and greening standards for new Growing urban tree cover
developments and major refurbishment approvals.
These will result in less energy usage, reduced
to cool the city
carbon emissions, less waste going to landfill,
more efficient water usage and more sustainable Extreme heat is the deadliest climate-related
transport options, which will benefit owners and cause of death in the US. It is estimated that the
occupiers by creating energy-efficient, climate- consequences of extreme heat in cities will cost
resilient, comfortable buildings that cost less to run. $2.4 billion to global GDP by 2030. Temperature
increases are projected to reduce working hours
The City’s experience highlights that older buildings by 2.2% and global GDP by $2.4 trillion by 2030,
pass on high energy costs to tenants and that long- due to the dangerous working conditions caused
term planning and iterative improvements will be by extreme heat. The effects of extreme heat are
needed to ensure that low-cost, healthy spaces are frequently more severe in cities due to the ‘urban
available to all. heat island’ effect. The poorest neighbourhoods
are often the most affected.
OECD analysis confirms that cities and regions
have a key role to play to decarbonise buildings In 2010, the City of Melbourne determined that
through leveraging prerogatives in regulation, public rising temperatures could cause the city to lose
procurement and stakeholder engagement, while 30% of its tree stock over the next ten years and
addressing multiple governance, capacity and 48% over the next 20 years if no serious actions
funding gaps. But to accelerate and scale up local were taken. To counter these conditions, the City
action, national governments need to set the right adopted an Urban Forest Strategy that embraces
incentives and enabling policy frameworks. native plants and landscaping. More than 30,000
trees have been planted with an emphasis on low-
income areas. More than 80 hectares of asphalt
Localising food systems and other underperforming infrastructure have been
incrementally converted to wider footpaths, bike
to build resilience lanes and open space.
In 2021, one in 80% of the world’s food is consumed in cities. OECD’s evidence shows that well-planned,
three residents Localising food resilience programmes into urban implemented and maintained green amenities
of Melbourne development strategies can build sustainability, and nature-based solutions yield co-benefits
experienced reduce GHG emissions, address land degradation, for people and the planet, such as increasing
food insecurity. improve nutrition and promote affordability. carbon storage and contributing to climate
adaptation, while also minimising large-scale, costly
In 2021, one in three residents of Melbourne infrastructure investment needs.
experienced food insecurity. To support access to
low-cost, fresh, healthy food, unused spaces are Climate change requires city leaders to prioritise
being repurposed for food production, as was the investments that build resilience. These investments
case with Melbourne Skyfarm. Through a public- also address the affordability crisis facing our cities,
private collaboration and matched-funding grant and ultimately, our leaders’ climate action will build
via the Urban Forest Fund, the City developed more equitable and resilient communities – now and
a 2,000 m2 rooftop farm in the city’s Docklands in the future.
precinct. Skyfarm harvested AUD 62,000 of fresh
ENA is warming at
M Here are five ways that developers, designers,
least twice as fast as contractors, owners, occupants, and regulators
the rest of the world Hawazen Esber
can work collaboratively to incorporate sustainability
since 1980. Chief Executive Officer,
across our projects.
Development, Majid Al
Credit: Majid Al Futtaim Futtaim
1. Putting collaboration at the heart
Beyond improving the health of caregivers and Seeing density as an asset to improving health
providing them with access to opportunities
previously beyond their reach, Mayor Lopez has While cities are often seen as a source of health
a loftier goal: to transform entrenched gender equity challenges, we have found that using urban
inequalities – so that Bogotá’s women have more proximity and density as an opportunity to tackle
time for themselves and more autonomy over their health inequities can help the most vulnerable
lives. To this end, there are also cultural workshops populations. Through spatial interventions,
on caregiving with men and women called, We Can influencing the social determinants of health,
All Learn to Care. and harnessing data, public, private, civil society
leaders can work at the city scale to improve health
outcomes for the most vulnerable.
ccessible cities
A Accessible cities must design and build more
afford individual and intentionally inclusive infrastructure for the
community benefits. vulnerable of the community – those of us like
Soichiro Takashima
Credit: Vertical the elderly who account for 12% of the global
Mayor of Fukuoka City,
Harvest population and the disabled who account for
Japan
1 in 6 of us globally.
– Equipped with detailed knowledge Entire groups end up on the margins, unable to
of such divisions, local governments fully participate in a city’s economic, social and civic
can improve social services and bring life. For advocates of a more inclusive city, one of
different socioeconomic groups together. the great challenges is fighting segregation in all its
forms. But to effectively bring a city back together,
This is where big data can be revolutionary. Our research into liminal ghettos can also highlight
Research from the Massachusetts Institute of their weak points, places that tend to bring people
Technology (MIT) has been able to track the subtlest together despite the forces that divide them.
forms of segregation with large, anonymous
datasets of mobile phone activity. A study in New York City found that when parks are
shut down for construction, encounters between
In a series of analyses in different cities, it measured Black and white residents fall. The study shows that
how often people from different backgrounds bump certain kinds of spaces are integrators, capable of
into each other on the street or talk to each other bringing people together. One simple way to make
on the phone. These findings allow us to define a better city could be to build more of them,
the amorphous borders of what, together with as it is currently the focus in Bristol.
sociologist Richard Sennett, we have started calling
“liminal ghettos”. What does bridging liminal ghettos look like
in practice? It means creating integrated
The term liminal ghetto is used in contrast to the spaces that are both accessible and desirable:
more rigid, official ghettos of history – such as venues where people from all walks of life
the Jewish quarters of medieval Europe and the want to go and feel welcome. Parks, plazas
redlined inner cities of the post-war United States – and schools fit this category. But it can
and it takes new, technologically augmented eyes also happen in unexpected venues.
to see them.
Last winter in Bristol, rising fuel prices and falling
What does it mean to live in a liminal ghetto? In temperatures were threatening the physical and
Stockholm, Sweden, we found that people do not financial well-being of the most vulnerable residents.
only live in segregated areas, but they are also more To combat the crisis, we opened more than 100
likely to visit neighbourhoods that have the same free, warm spaces across the city.
socioeconomic profile as their own.
We knew that these rooms needed to be
In Singapore, we found that a stratified “rich club” both warm and welcoming; otherwise, they
are the most segregated group in terms of phone would be segregated and stigmatizing. To
calls: they are more likely than anyone else to only this end, we called the initiative Welcoming
call one another. Liminal ghettos do not only divide Spaces and focused on making each one a
social groups; they also trap individuals into corners hub of social services and community.
of loneliness.
When winter came these rooms — in churches,
In the Portuguese city of Porto, we found that the mosques, and community centers — did not only
93%
COVID-19 pandemic caused a 35% drop in the keep people safe from the cold, but they also
overall diversity of social interactions, with the most thawed the frosty edges of our city’s liminal ghettos.
pronounced and lasting damage to the social ties of
of Welcoming Spaces
women and the elderly. In a survey, 93% of Welcoming Spaces users
users in Bristol said
the biggest impact of said the biggest impact of the programme was
the programme was Liminal ghettos are not a new discovery: they have not keeping them warm, but providing a place
providing a place for always been obvious to those living inside them. As for people to socialize. This finding underscores
people to socialize. one of us grew up in 1980s Bristol as a mixed-race just how divided our cities have become —
Power of big data to promote By combining big data with “rich data” – the
nuanced individual stories that make up the
social cohesion fabric of a city – we can merge local wisdom
technical tools.
Together, our studies at MIT and our experience
in Bristol demonstrate the power of a data-driven, Cities have always been caught between
locally led approach to promote inclusion. segregation and agglomeration, but in this very
moment we could shift the balance between them.
Big data can give us unprecedented quantifications If we can truly understand how urban citizens get
of the problems we face, but the decision pushed apart, we have a chance to finally pull them
Credit: Unsplash power needs to be in the right hands. National back together.