The housing affordability problems of the middle-income groups in Dhaka: a policy environment analysis

Abstract

The concepts and definitions of housing affordability vary depending on the economic and social contexts of specific countries. However, irrespective of the context, housing affordability is not only influenced by the market conditions, but also by the prevailing policy environment, among other social and economic factors. The impact of the supply-side instruments of the policy environment, such as the regulatory regime, on the provision of affordable housing and housing affordability has been widely studied mainly in the context of developed or richer developing countries where strong regulatory and institutional frameworks exist. Little has been done in the context of developing countries with weak regulatory and institutional frameworks. This research pioneers a study of this kind in the context of Bangladesh. It investigated the housing affordability problems of the middle-income groups in Dhaka and identified the underlying supply-side causes of the policy environment. The social constructivist paradigm of the qualitative research has been engaged as the research strategy. Primary and secondary data were collected using various approaches. This study reveals that the formal housing market in Dhaka failed to provide affordable housing for the middle-income groups. The housing units in the informal settlements could be affordable to the middle-income groups, but their social status inhibits them from living in these settlements. The regulatory and infrastructure development regimes are found to be non-enabling. This study enriches the literature related to the impact of the policy environment on housing by widening the debate to cover the developing countries.