Scaling up Green Affordable Housing

Project Summary:

The grant seeks to unlock scalable solutions for green, affordable housing in countries where the demand is most pressing, addressing the urgent need for sustainable and inclusive housing options globally.

According to the World Bank, the global demand for housing will reach 100,000 units per day by 2030, with approximately 1 billion people currently residing in slums. Meanwhile, the McKinsey Global Institute estimates a staggering $650 billion annual gap in affordable housing, potentially affecting up to 1.6 billion people by 2025. Compounding the crisis, the construction and building sectors contribute 35% of global greenhouse gas (GHG) emissions. Many housing developments are also situated in high-risk or remote areas, highlighting the critical need for disaster-resilient, inclusive, and environmentally sustainable solutions. In developing countries, significant barriers exist across the housing value chain, demanding strategic coordination between the public and private sectors.

Leveraging its extensive technical expertise and proven track record, the World Bank Group (WBG) will utilize this grant to pioneer methodologies and solutions under the Joint Affordable Housing Program (J-AHoP)—a collaborative initiative between IBRD and IFC. J-AHoP will integrate seamlessly with existing WBG operations, such as the Tamil Nadu Habitat and Housing Development Project (P168590) and the Second Kenya Urban Support Program (P177048), to drive scalable, climate-resilient, and affordable housing initiatives.