By Vivek Rawal

Somalia, a country with an estimated population of about 19 million, is dealing with a continually worsening housing crisis. Approximately half of Somalia’s population—around 9 million people—now live in urban areas. Many of them are displaced by years of conflict, poverty, or climate disasters, seeking refuge in cities where they often end up in informal settlements or camps. In these settings, about 72% of the urban population, or roughly 6.5 million people or a million households, live in slum-like conditions in makeshift shelters. These highly inadequate shelters offer minimal protection from the elements, lack sanitation, and provide no privacy or security, which highlights the urgent need for adequate housing.

Gaps in Urban Housing

Somali cities face a severe housing deficit, with about 55% of the urban population (approximately 4.7 million people or 800,000 households) lacking a decent housing. Rapid urban growth of around 4.3% annually, adding around 300,000 people (or 50,000 households) each year, exacerbates the situation. The government’s capacity to build housing is limited, and the private sector doesn’t serve needs of low-income housing, focusing instead on real estate developments for the middle and upper classes. With almost no supply of public or social housing, the current housing deficit is only growing and cities are slumming as urban sprawls. Recent disasters, such as the 2023 Deyr floods that led to the collapse of approximately 20,000 houses, underscore the need for resilient infrastructure and better housing. 

Issues of Land Tenure and Urban Planning

A significant portion of Somalia’s displaced population squats in informal settlements on either private lands or land traditionally held by different clans. Around 10% of these internally displaced persons (IDPs) reside on public land without proper tenure rights, which makes them especially vulnerable to eviction. Land ownership conflicts are a persistent issue in Somalia, which complicates efforts to provide secure housing. Land disputes are common, with informal settlements often located on land claimed by different groups or government land, leading to tensions and uncertainty for residents. Land records are in chaos and most often conflicts over ownership continue to persist without solutions. So the supply of land for housing is limited and, therefore, extremely costly and unaffordable. Lack of urban planning further restricts the supply of housing land. This has resulted in sprawling, unplanned settlements that grow without any basic infrastructure or long-term vision for sustainable development. Effective land use planning is crucial if Somali cities are to become organized, productive urban centers rather than chaotic sprawl.

Grassroots Investments: Savings and Remittances

A common misconception is that Somalia’s housing crisis can only be solved through international aid. This perspective overlooks the significant investments that Somali citizens have made in housing over generations. Much of the current housing stock was built through personal savings, remittances from the diaspora, informal borrowings and community support. This represents billions of dollars invested by the Somali people, far exceeding the financial contributions from the government or international aid. Tapping into this existing strength, the government could empower citizens to drive urban growth. By creating an environment of stability, security, and effective governance, the government can support people’s efforts to build and improve their communities, filling in critical gaps in services, infrastructure, technology, skills and enabling access to much needed resources.

Limited Access to Finance or Building Materials

Lack of affordable housing finance options creates a major barrier for housing in Somalia, particularly for low-income households and displaced people. Underdeveloped financial system means that most people lack access to housing loans, making home ownership unattainable for many. Additionally, the construction in Somalia is heavily reliant on imported building materials, which increases costs and limits the availability of resources. Developing local manufacturing of building materials maximising use of local resources could reduce costs, create jobs, and make housing more affordable for the people.

Need for Participatory and Inclusive Governance

Addressing housing issues in Somalia requires a participatory approach, allowing citizens to actively shape the development of their cities. Transparent and inclusive decision-making is essential to ensure policies meet the real needs of the people. By involving residents—especially those in informal settlements or IDP camps—in housing and urban planning, the government can foster a sense of community ownership and accountability. This approach transforms citizens from passive recipients of aid into active participants who have a say in the neighbourhoods they live in and the future of their cities.

Housing as a Catalyst for Economic Growth

With effective and participatory governance, housing can become a catalyst for economic growth in Somali cities. Housing projects can stimulate the local economy by creating jobs in construction and supporting industries that produce building materials. Considering the vast housing deficit (around 800,000 households) and the annual need to accommodate an additional 50,000 households, housing development could become a central driver of economic activity. Rather than seeing housing solely as a way to meet immediate needs, it can be viewed as an opportunity to build wealth, create jobs, and reduce dependency on international aid. Investment in housing not only provides shelter but also strengthens the economy and paves the way for Somali cities to grow into vibrant, sustainable urban centers. 

A Path Forward to Resilience and Prosperity

To fulfill needs of the housing, Somalia needs socio-political stability and effective governance that allows people to invest in their communities with confidence. For this transformation from urban sprawls to liveable habitats to truly take place, the government has to enable and facilitate people-led housing construction processes with affordable finance, materials and skills rather than turning themselves into a construction company. People have demonstrated capacity to invest and build their housing and cities. Somali cities have the potential to become hubs of opportunity, where people can participate in economic activities. By focusing on governance, transparency, and community-driven development, Somalia can turn its housing challenges into opportunities, ultimately leading to resilient, inclusive cities for future generations.

Vivek supported UNDP Somalia in 2024 as a specialist contributing to the Post-Disaster Needs Assessment (PDNA) following the Deyr floods of 2023.