A housing affordability crisis occurs when housing costs (renting or buying) rise significantly faster than household incomes, making it difficult for many to secure sustainable housing. This can lead to widespread shortages, financial crises within the housing market, and contribute to homelessness and housing insecurity. Globally, the COVID-19 pandemic and subsequent inflation have exacerbated this crisis. In Saudi Arabia, it's a significant concern, especially in cities like Riyadh and Jeddah, due to factors such as high land costs, low household incomes, increased construction costs, high mortgage interest rates, and a shortage of suitable residential land. Government investments in Vision 2030 mega-projects have also contributed to rising property values, making it harder for average citizens to enter the housing market, a situation acknowledged as 'unacceptable' by Crown Prince Mohammed bin Salman.
