Housing Poverty in Pakistan
More than one in three urban residents in Pakistan are 'housing-poor': World Bank
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World Bank's latest report titled; 'Behind on rent or left behind: measuring housing poverty in urban Pakistan' has proposed a modified Residual Expenditure Methodology (REM) approach (new method), drawing on existing poverty measurement methodology, to measure housing poverty in urban Pakistan.
According to this approach (in line with global best practice on measuring welfare in developing countries), households that are unable to afford a minimum threshold of non-housing expenditures (after paying for housing costs) are classified as housing-poor.
The findings of this report revealed that 31.3% of the urban population in Pakistan is housing poor. This result is near to the standard ratio rule-of-thumb method (simplistic ratio method), which estimates that approximately 38% of the urban population lives in unaffordable housing. However, both ways target very different groups: while 54.2% urban population is classified similarly by both methods, 19.5% of the population is housing poor but is excluded under the simplistic ratio method. A provincial and quintile-wise breakdown has shown large differences across the two methodologies.
GRAPHIC OF THE DAY
Share of the urban population in unaffordable housing, by region and type of measure, reveals that in urban Khyber Pakhtunkhwa (KP), the rate of housing unaffordability almost doubles with the new method
Housing poverty does a better job of targeting the poor than the traditional ratio method, according to the World Bank
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