Urban Living: Challenges and Opportunities
Today, more than half of the world’s population lives in urban centers, with projections indicating an increase of 2.4 billion people by 2050. Cities are essential to our collective future, yet they are confronted with formidable challenges such as climate change, social inequality, and economic uncertainty. To effectively manage this growing urban populace and fulfill the United Nations’ Sustainable Development Goals (SDGs), cities must implement sustainable and transformative urban development strategies.
The Urban Challenge
The rapid expansion of urban areas has evolved from a mere trend into a pressing crisis. Unchecked urban sprawl, largely fueled by increasing housing demands, has led to the rise of informal settlements, which now accommodate over 1.1 billion people. This unchecked growth exacerbates the risks associated with climate change, with buildings and construction activities contributing up to 40% of total greenhouse gas emissions.
Escalating Temperatures and Diminishing Green Spaces
The U.N.-Habitat’s World Cities Report 2024 projects that by 2040, more than 2 billion urban dwellers will experience significant temperature increases, with over a third of city residents living in areas where the average annual temperature surpasses 29°C. Moreover, green spaces—crucial for cooling urban areas and promoting well-being—have plummeted from 19.5% of urban land in 1990 to just 13.9% in 2020. Climate-related disasters, such as floods and droughts, have surged in frequency, comprising 91% of major disasters recorded between 1998 and 2017. Vulnerable populations, particularly those in informal settlements, are disproportionately impacted by these challenges.
Tackling Social and Economic Inequality
The challenges cities face extend beyond environmental issues; they are also grappling with widening social and economic disparities. According to the World Cities Report, the annual economic burden from escalating natural disasters could surpass $1 trillion by mid-century.
The Housing Dilemma
A global housing crisis currently affects over 2.8 billion individuals. At the same time, investments in social housing are dwindling, with most regions allocating less than 0.5% of their GDP. Internal displacement, driven by conflict and natural disasters, further exacerbates the demand for housing. The Internal Displacement Monitoring Center has reported that the number of internally displaced persons in Africa has risen to 35 million over the past 15 years, with 60% seeking refuge in already overburdened urban areas.
Transforming Challenges into Solutions
Recognizing that cities can be more than just sources of challenges is essential; they can also be part of the solution. Urban policies, land use strategies, legislation, and financial frameworks must be reimagined to prioritize housing and essential services as key components of climate action and sustainable development. Establishing a clear link between affordable housing, well-designed cities, and sustainable development is crucial.
Maximizing Land Use
To start, optimizing land use for ecological, economic, and social benefits is imperative. This approach can reduce emissions, improve accessibility, and unlock the latent potential of urban areas. Special emphasis should be placed on stimulating local economic growth through the transformation of informal settlements and their integration into the urban fabric, particularly given the substantial contribution of the informal economy to GDP in many Global South countries. For example, in 2021, 98.5% of Niger’s workforce was engaged in informal employment, while a similar 97.5% figure was recorded in the Democratic Republic of the Congo. Issues of informality also extend to land rights; in Angola, only 6.6% of urban households are registered for property taxes, which resulted in property tax revenues contributing a mere 0.26% to the state budget in 2023, as reported by the World Bank in the Centre for Affordable Housing Finance in Africa 2024 Yearbook.
Encouraging Sustainable Housing Development
Furthermore, prioritizing the development of housing using sustainable construction materials while supporting local markets is crucial. Housing and construction can play a dual role: they can stimulate job creation and economic growth while also promoting environmentally sound practices. By utilizing sustainable materials like recycled steel, bamboo, and energy-efficient insulation, we can significantly lessen the environmental impact of both new constructions and renovations.
Integrating Essential Services
In addition, basic services—such as clean energy, water supply, sanitation, and transportation—must be fully integrated into urban planning, requiring appropriate infrastructure investments. These services are essential not only for the well-being of residents but also for effectively addressing climate change and ensuring that cities remain resilient and sustainable for future generations.
The Role of Local Authorities
Local and regional governments are pivotal in these transformative initiatives. They bridge global aspirations with local actions, linking infrastructure, services, and communities while forming the backbone of the SDGs. This requires collaboration with marginalized communities in informal settlements to devise strategies that optimize the built environment while reflecting the needs and preferences of residents.
Investing in Housing as a Key Solution
However, the foundation of the SDG framework cannot be established without addressing housing. Housing is a fundamental pillar of urban development. With rapid urbanization occurring in Africa and Asia, cities in these regions must accommodate and shelter their growing populations. Investments in housing initiatives and infrastructure should be perceived as opportunities to achieve economies of scale and expand the consumer and tax bases. According to the U.S. National Association of Home Builders, constructing 100 affordable homes can generate 161 local jobs within the first year, contributing $11.7 million to local income.
A Collaborative Path Forward
The path ahead is clear: we need collective efforts that align social, urban, and climate goals, grounded in local action and supported by adequate housing.
A Core Principle
Our guiding principle is simple: prioritize the care of people, and they will, in turn, take care of the planet.
