Ttoday, more than half of the world's population lives in cities—a number expected to grow by 2.4 billion by 2050. Cities are at the heart of humanity's future, but they are also at the bottom of some of our biggest challenges: climate change, social inequality. , and economic weakness. To accommodate a growing urban population and achieve the UN's Sustainable Development Goals (SDGs) while leading the fight against climate change, cities must embrace flexible, sustainable urban development.
Rapid urbanization is no longer just a trend—it's a disaster. Unplanned urbanization, fueled primarily by growing housing needs and the proliferation of slums housing more than 1.1 billion people, increases climate risks. Buildings, housing, and construction are responsible for up to 40% of greenhouse gas emissions.
As described in UN-Habitat's World Cities Report 2024, more than two billion urban dwellers are expected to experience a significant increase in temperature by 2040, with one-third of the urban population living in areas where the annual temperature is above 29°C. Over the past few decades, green spaces in our cities, which are important for reducing heat and promoting well-being, have been decreasing from 19.5% of urban land in 1990 to 13.9% in 2020. Weather-related disasters, such as floods, hurricanes, and droughts, have increased. They account for 91% of major disasters between 1998 and 2017. In general, the most vulnerable communities and slum dwellers are the most affected.
But it's not just a matter of nature. Cities are facing growing social and economic inequality. The annual economic losses from the increasing natural disasters may exceed 1 trillion dollars by the middle of the century, according to projections of the World Cities Report.
The current global housing crisis affects more than 2.8 billion people worldwide. At the same time, investment in public housing has declined, with most regions contributing less than 0.5% of GDP. Internal displacement—driven by conflict and natural disasters—adds pressure to current housing needs. A recent report by the Internal Displacement Monitoring Center shows that the number of displaced people in Africa has tripled to 35 million in the last 15 years, with 60% seeking refuge in already troubled urban areas.
But it is important to note that cities are not only the source of challenges—they are also not the solution. The key is to rethink urban policies, global social and environmental activities, laws, and funding to prioritize housing and basic services as drivers of climate action and sustainable development. The connection between affordable housing, well-planned and equitable cities, and sustainable development must be made clear.
First, it is important to improve land use for environmental, economic, and social benefits. This approach to global issues will reduce pollution, improve accessibility, and open up opportunities for work in urban areas. An important task is to develop the local economy through the transformation of slums and their integration into the urban environment, especially given the importance of the informal economy to GDP in the Global South. For example, according to the United Nations, 98.5% of Niger's workforce is officially employed by 2021. In the Democratic Republic of the Congo, the figure was 97.5%. Informality governs land rights and property issues, too. Only 6.6 percent of Angolan urban households are registered to pay property tax. As a result, income from property taxes contributed only 0.26% of the government budget in 2023, according to World Bank data cited in the Center for Affordable Housing Finance in Africa 2024 Yearbook.
Second, we must focus on housing and ensure the use of sustainable building materials while developing local markets. Housing and construction serve two purposes: creating jobs, stimulating the economy, and making housing sustainable and environmentally friendly. By incorporating sustainable building materials such as recycled steel, bamboo, and energy-efficient insulation, we can reduce the environmental footprint of new and retrofit homes.
Third, basic services such as clean electricity, water, sanitation, and transportation must be seamlessly integrated into urban planning, ensuring appropriate infrastructure investment. These services are not only important for the well-being of residents but also for mitigating and adapting to climate change, ensuring that cities are resilient and sustainable for future generations.
Local and regional governments are at the forefront of these changes. They unite global ambitions through grassroots action, connecting infrastructure, services, and people, and serve as a foundation for the SDGs. This includes working with and serving the most vulnerable communities in slums and designing strategies that will maximize the use of the built environment while keeping up with consumer preferences and demographics.
But we cannot complete this SDG house without a roof. The roof is the roof that holds the building together. Rapid urban growth is occurring in Africa and Asia, and cities in these regions will need to care for and shelter the growing population. Investment in housing and infrastructure projects must be seen as an opportunity to create economies of scale, as well as to expand the consumer and tax bases. According to the US National Association of Home Builders, the construction of 100 affordable homes creates 161 local jobs in the first year alone and brings in $11.7 million in local income.
The way forward is clear: concerted efforts where social, urban, and climate goals meet the groundwork for local action under the roof of adequate housing.
And our guiding principle is simple: take care of people, and they will take care of the planet.
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