UN-Habitat: Global South salaries too low for housing

In Global South countries, people's salaries are far too low compared to housing prices, Anacláudia Rossbach, Executive Director of the United Nations Human Settlements Programme (UN-Habitat), said during an event held within the 13th Session of the World Urban Forum (WUF13) in Baku, Report informs.

According to Rossbach, housing finance for individuals and its integration with infrastructure is crucial: "We need urban infrastructure. That is why we must understand the role of central and local governments at the national level. Financial resources usually exist nationally, and housing is very expensive – not just in some countries, but everywhere. All countries have some form of housing incentive or subsidy. Of course, there are social groups that do not need subsidies, but the vast majority require income support and subsidies. The issue is that when there is an income gap, more subsidies are needed. And in the Global South, salaries are truly very low compared to housing prices."

She added that local governments also play a vital role: "In our strategic plan, we talk about urban planning and finance. We discuss multi-level governance and the role of local governments. We emphasize why local governments must have financial independence and capacity. We are not just building houses – connecting everything related to housing is the responsibility of local governments. We are building settlements, so access to services, jobs, and opportunities must be ensured. We need mobility systems, transport, public spaces, and community centers. These are better provided by local governments because they are closer to communities and can mobilize local resources. Therefore, together with countries, we must review or establish housing finance systems that can endure and remain sustainable in the long term."