Invisible informal housing in the Global South

In many countries, the informal construction sector is still the only industry capable of producing affordable housing solutions for the poor. The informal housing sector is a heterogeneous and multimillion-dollar industry, but also one that is often misunderstood, ignored, and excluded from government support. In most developing countries, informality accounts for a significant share of the economy and the building sector, yet both scholars and decision-makers still know very little about how self-help housing is designed, planned, and built. Many accuse informal construction of creating urban ills such as disasters, chaos, and pollution, ignoring that government-endorsed programs and formal residential projects rarely benefit those who are at the very bottom of the economic ladder. Very often, formal housing programs—influenced by macro-economic policies and financial mechanisms—fail to respond to the needs and expectations of low-income households. Appropriate programs and projects require a thorough understanding of the priorities, needs, and expectations of low-income residents. Here we explore some of the common patterns that are often found in informal housing construction in the Global South, and show how economic forces, such as financialization, market-based systems, and subsidized programs, prevent solutions from reaching low-income households. Understanding how informal housing is created is a fundamental step in designing pertinent housing policy in developing countries.