The Dynamics of Urban Living and Its Consequences
In today’s world, more than half of the population dwells in urban settings, a figure projected to soar by an additional 2.4 billion by 2050. While cities are crucial for shaping our future, they are also confronted with pressing issues such as climate change, social inequality, and economic volatility. To effectively manage the rising urban demographic and achieve the United Nations’ Sustainable Development Goals (SDGs), cities must embrace innovative and sustainable urban development strategies.
The Urban Challenge
The rapid expansion of urban areas has evolved from a mere trend into a pressing crisis. Unchecked urban growth, primarily fueled by escalating housing demands and the rise of informal settlements housing over 1.1 billion people, intensifies climate risks. Construction and building activities are major contributors to greenhouse gas emissions, accounting for nearly 40% of the global total.
Increasing Heat and Diminishing Green Areas
As highlighted in the U.N.-Habitat’s World Cities Report 2024, over 2 billion urban residents are anticipated to experience significant temperature increases by 2040, with more than one-third of urban populations living in areas where average annual temperatures exceed 29°C. Moreover, the vital green spaces that cool cities and enhance well-being have decreased from 19.5% of urban land in 1990 to just 13.9% in 2020. The frequency of climate-related disasters such as floods and droughts is alarming, accounting for 91% of the major disasters recorded between 1998 and 2017. Those in vulnerable communities, especially in informal settlements, are disproportionately affected by these challenges.
Tackling Social and Economic Inequities
This situation extends beyond environmental issues; cities are also facing widening social and economic divides. The World Cities Report warns that the escalating economic impact of natural disasters could exceed $1 trillion annually by mid-century.
The Housing Dilemma
Currently, a global housing crisis affects more than 2.8 billion people. At the same time, investments in social housing are dwindling, with most regions allocating less than 0.5% of their GDP for this purpose. Additionally, conflicts and natural disasters are causing internal displacement, further increasing housing demand. A report from the Internal Displacement Monitoring Center reveals that the number of internally displaced persons in Africa has surged to 35 million over the past 15 years, with 60% finding refuge in already overwhelmed urban areas.
Transforming Challenges into Opportunities
Recognizing that cities can be part of the solution is essential. The focus should be on rethinking urban policies, land use, legislation, and financial frameworks to prioritize housing and essential services as catalysts for climate action and sustainable development. A clear connection must be drawn between affordable housing, equitable urban planning, and sustainable progress.
Maximizing Land Use
To initiate change, we must optimize land use for ecological, economic, and social benefits. This approach will help reduce emissions, improve accessibility, and unlock the hidden potential of urban spaces. Special attention should be given to fostering local economic development through the transformation of informal settlements, especially considering the significant role of the informal economy in the Global South. For example, the International Labour Organization reported that in 2021, 98.5% of Niger’s workforce was engaged in informal employment, with a similar figure of 97.5% in the Democratic Republic of the Congo. Informality also complicates land rights and property issues; in Angola, only 6.6% of urban households are registered for property taxes, contributing a mere 0.26% to the state budget in 2023, as noted by the World Bank in the Centre for Affordable Housing Finance in Africa 2024 Yearbook.
Advancing Sustainable Housing Solutions
Next, we must prioritize the development of housing using sustainable construction materials while invigorating local markets. Housing and construction can play dual roles—creating jobs and stimulating the economy, while also promoting environmentally friendly practices. By utilizing sustainable materials such as recycled steel, bamboo, and energy-efficient insulation, we can significantly reduce the environmental footprint of both new constructions and renovations.
Integrating Essential Services
Moreover, crucial services—including clean energy, water, sanitation, and transportation—should be seamlessly integrated into urban planning, requiring adequate infrastructure investments. These services are vital for residents’ quality of life and for effectively addressing and adapting to climate change, ensuring cities remain resilient and sustainable for future generations.
The Vital Role of Local Governments
Local and regional governments play a pivotal role in these transformative initiatives. They connect global objectives with local actions, linking infrastructure, services, and communities, thereby forming the backbone of the SDGs. This requires collaboration with the most marginalized communities in informal settlements, devising strategies that enhance the built environment while resonating with consumer preferences and demographic shifts.
Housing as a Key Investment
However, we cannot build the foundation of the SDG framework without prioritizing housing. Housing is a fundamental support structure. Rapid urban growth in Africa and Asia necessitates that cities in these regions adequately shelter their burgeoning populations. Investments in housing initiatives and infrastructure should be viewed as opportunities to create economies of scale and expand consumer and tax bases. The U.S. National Association of Home Builders states that constructing 100 affordable homes can generate 161 local jobs in the first year alone, contributing $11.7 million to local income.
A Collective Path Forward
The way forward is clear: we must engage in collective efforts that align social, urban, and climate goals, all grounded in local action and supported by robust housing frameworks.
A Key Guiding Principle
Our guiding principle is simple: prioritize the well-being of people, and they will, in turn, nurture the planet.
