Housing the Poor in Asian Cities: Rental Housing

Millions of people in Asian cities are tenants. Rental housing may be only a partial
answer to urban housing problems, but it is an important housing option — especially
for the urban poor, and particularly in situations where people are not ready or able to
buy or build houses of their own. In spite of this, governments in Asia have done little
to support the improvement of rental housing which already exists or the expansion
of affordable rental housing in new areas.
Rental housing markets are influenced by, and respond to, local economic and
political conditions and regulatory frameworks, and can be very different from city to
city. Landlords, tenants and investors develop and use rental housing in flexible and
inventive ways, so as to satisfy needs and maximize its asset value. All this makes
rental housing an integral part of well-functioning housing markets.
It is important that policy makers understand the intricacies of their cities’ rental housing
(both formal and informal) and know how to formulate effective, flexible policies to regulate
and promote it. The first section of this guide reviews the characteristics of rental housing
markets and how they function. The issues of demand and supply of rental housing are
discussed, including the concept of rent-free housing. The later part of the guide presents
policy options to regulate, promote and expand rental housing — especially for the urban
poor.
This guide is not aimed at specialists, but aims to help build the capacities of national
and local government officials and policy makers who need to quickly enhance their
understanding of low-income housing issues.