Shortages of middle-income owner-occupied housing in Dhaka - Failures of government or market?

Abstract

Dhaka is characterized by housing shortages, appallingly expensive housing and in consequence very low homeownership rate. Low and even middle-income groups have been priced out of the housing market. Middle-income people are being forced to rent accommodation. The emergence of private housing developers with affordable housing provision - which is currently absent- is necessary to raise the homeownership rate among middle-income group. The study demonstrates that housing land supply constraints and the lack of affordable housing finance have thwarted the provision of middle-income housing. Most of these constraints are due to the absence of government policy tools appropriate for efficient urban land management. It is suggested that government should take initiatives with appropriate policy guidelines to conquer housing market constraints.