Urbanisation, Housing Affordability, and Social Well-being: A Comparative Urban Study

Abstract

The Global Human Settlement System is undergoing urbanisation, which affects economic and social life. The urban population (45 % of the world's 8.2 billion people) more than doubled from 1950 to 2025. The rapid growth in cities has led to a vibrant economy but also to serious issues in housing affordability, higher spatial inequality and socio-economic segregation, and worsening social well-being. This study examines the relationship between urbanisation, housing affordability, and social well-being through a comparative analysis of five countries and their cities (the United States, the United Kingdom, China, Mexico, and Kenya) from 2010 to 2025. This article draws on theories of urbanisation, housing markets and social well-being, as well as recent literature, and uses panel data from the UN-Habitat, World Bank, OECD and national sources to create comparable indicators of housing affordability and quality of life. The findings show that housing affordability has declined in a variety of settings through a combination of increasing incomes, yet increasing price to income ratios. There is a positive correlation between housing costs and lower levels of other quality-of-life indices and socioeconomic inequality; the magnitude of the impacts depends on the region, institutional structure, and policy environment. The paper outlines the political economy of urban development and demonstrates the impact of financialisation, deregulation and privatisation of housing on affordability issues. It finds that inclusive planning, social housing provision, rent regulation and cooperative models can help to address affordability crises and improve social well-being.