WUF13 called for reform of global housing finance systems

Existing housing finance systems remain fragmented and inaccessible to millions of people, while unequal access to credit and limited public investment continue to deepen housing inequality and spatial exclusion.

As Report informs, this is stated in the Baku Call to Action adopted at the conclusion of the 13th session of the World Urban Forum (WUF13).

The document notes that existing housing finance mechanisms in many cases fail to reach low-income families and communities.

The authors of the call advocated for rethinking the entire housing finance chain to enhance inclusivity and scale up support through strengthening municipal finances, expanding financial autonomy, and developing revenue generation strategies.

The document also calls on development banks and the private sector to prioritize expanding access to credit and creating predictable long-term financial mechanisms that account for territorial specificities and target the most vulnerable population groups.

Furthermore, the Baku Call to Action emphasizes the need for the private sector to collaborate with national and local authorities, central banks, financial institutions, and community savings structures to develop new risk assessment and management mechanisms, targeted subsidies, expanded access to credit, and blended financing.

Parliamentarians and national treasuries were called upon to diversify public subsidies to accommodate different housing approaches, as well as to more actively mobilize private and community savings.

The document also notes that fragmented planning systems continue to reinforce spatial inequality and inefficient urban growth, separating housing from land, infrastructure, transport, income sources, and basic services.

In this regard, the authors of the call advocated for integrated and systemic planning approaches that incorporate housing policy into broader territorial and urban strategies with a focus on equality, inclusivity, spatial justice, and the right to the city.

It is emphasized that the implementation of such approaches should be carried out through expanding the capacities of local authorities, civil society organizations, grassroots movements, and the private sector to jointly develop solutions.