Global Urbanization Challenges: Housing, Social Life and Environmental Sustainability Solutions

Tashkent, Uzbekistan (UzDaily.com) — The 13th World Urban Forum (WUF13) of the United Nations, scheduled to take place in Baku from 17 to 22  May, is dedicated to the theme: “Housing the World: Safe and Sustainable Cities and Communities.”

The forum is one of the key platforms for discussing solutions to the global housing crisis, climate risks, inclusive planning, and sustainable urban development. Around 30,000 experts from 178 countries are expected to participate (trend.az).

The adopted “Baku Call to Action” will serve as the basis for the UN Secretary-General’s report in 2026 (undp.org). This highlights that the forum is not only a discussion platform but also a mechanism for shaping concrete policy commitments.

Urbanization in numbers: the pace of global change

Urbanization is one of the largest demographic processes in the modern world. According to UN data, in 1950 only 20% of the world’s population lived in cities, while today this figure has reached 45%. By 2050, two-thirds of global population growth is expected to occur in urban areas (UN). More than 80% of global GDP is generated in cities (WRI).

In developing countries, urbanization is particularly rapid. Between 1985 and 2010, urban populations in middle-income countries doubled, while in the least developed countries they tripled (World Economic Forum). The number of megacities with over 10 million inhabitants increased from 8 in 1975 to 33 in 2025, 19 of which are in Asia (UN). Urban growth centers are shifting toward Africa and South Asia, where annual megacity population growth exceeds 3%.

Social life: urbanization and human well-being

Urbanization brings not only demographic change but also opportunities to improve quality of life. Cities expand access to basic services such as education, healthcare, water supply, sanitation, transport, and energy.

Proper management of urbanization contributes to improved living standards and expanded access to social services. It also supports social inclusion and sustainable development by reducing poverty and inequality, increasing employment, and improving housing conditions.

On a global scale, it contributes to expanding gender equality and economic opportunities for women. In the Americas, female employment increased from 44.8% in 1991 to 49.6% in 2018, while the gender employment gap narrowed by 8.9 percentage points (ILO).

However, growing urban migration is also accompanied by demographic pressure. Population aging is an important trend of urbanization: the share of people over 65 increased from 5% in 1950 to 10% in 2020 and is projected to reach 16% by 2050 (NLM).

Housing as a global challenge

The global housing crisis reflects deep social inequality. Despite increased construction in major cities, limited fiscal and infrastructure capacity prevents sufficient provision of affordable housing.

An estimated 1.6 to 3 billion people worldwide lacked adequate housing conditions in 2024. In 2022, the number was 1.12 billion, an increase of 130 million compared to 2015 (Frontiers).

The housing problem is linked not only to construction volumes but also to poverty, access to finance, and service costs. In OECD countries, about one in three low-income renters spends more than 40% of their income on housing, creating a significant financial burden. In countries such as Colombia, Chile, Costa Rica, Spain, and the United States, more than half of low-income renters face high housing costs (OECD).

The housing market also faces land shortages, limited financing, and a lack of affordable housing supply. In Europe, according to a 2025 survey of nearly 100 mayors, in 71% of cities high construction costs are the main barrier, while in 60% land scarcity is a key issue.

Environment and climate resilience

Although urbanization is a driver of economic growth, its environmental impact remains significant. More than 70% of global greenhouse gas emissions originate from cities (IDB).

Extreme climate events are particularly dangerous for cities, especially for populations living in informal settlements. A significant share of such areas is located in high-risk zones exposed to floods, landslides, and extreme heat (WRI).

The housing and climate crises are closely interconnected and create new urban challenges, leading to major destruction. Examples include floods in Mexico and record heatwaves in India.

Therefore, the implementation of sustainable solutions in housing policy is becoming increasingly important, including climate risk assessment, improved energy efficiency in urban planning, waste reduction, and the development of green infrastructure. Global practice increasingly prioritizes restricting construction in high-risk zones and upgrading informal settlements.

Significance of the Baku Forum

Today, urbanization presents countries with complex challenges related to housing, social equity, infrastructure, and climate resilience. In this context, WUF13 is one of the key global platforms for discussing urban development issues.

The approaches discussed at the forum emphasize the need to view housing not only as physical infrastructure but also as a factor of human well-being, economic stability, and environmental security.

Particular attention is given to transforming informal settlements, developing climate-resilient cities, and expanding inclusive financing mechanisms. This enhances the practical relevance of the forum.

Thus, WUF13 can be seen as an important international platform shaping the global urbanization agenda and defining directions for sustainable development of future cities.

Sukhrob Makhmudov Project Manager Institute of Macroeconomic and Territorial Studies (IMTS)