Dive Brief:
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Approximately 1.2 billion people worldwide live in substandard housing, and their numbers are growing, according to a report to be released this month by McKinsey & Co.
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To bring those 330 million households up to acceptable standards and to build enough affordable housing going forward would come at a price tag of $11 trillion. The report’s authors define “acceptable” as including flush toilets and running water, and located no more than a one-hour commute from work.
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In the report, McKinsey— a global consulting company—calls on governments to sell the land they own at below-market prices. Still, the report notes, lower-priced land tends to be located away from city hubs, so residents might not have easy access to transportation, schools and hospitals.
Dive Insight:
The lack of affordable housing could be an opportunity for builders, especially in countries with emerging economies, like China, Russia, and Brazil.