ABSTRACT
This chapter examines the problems of housing affordability of the middle- and lower-middle income groups of Dhaka, the capital of Bangladesh. The housing policy environment in Dhaka is examined to find out the nature and direct causes of the housing affordability problems faced by the middle-income groups of Dhaka. Households spending above a certain percentage of their monthly income for rent are classified as having a housing affordability problem. The middle-middle- and lower-middle-income households need to spend more than that they can afford for housing rent in the formal sector housing and consequently struggle to afford other daily necessities. Even in the rental market, the housing rents are so high that middle-income families need to compromise their living standards. While the middle-income households tend to rent housing units, the social norms invariably lead them to consider the social advantages and disadvantages of the intended location, such as the social status of the neighbors.
