Financing the Homes Cities Need - New approaches for social and affordable housing

Housing systems around the world are under unprecedented pressure, with demand for social and affordable homes rising faster than supply. Paradoxically, this occurs despite widespread vacancy in existing housing stock and underused land in many cities. Globally, an estimated 1.6 billion people lack adequate housing, and meeting demand by 2030 requires 96,000 new affordable units per day (UN-Habitat, 2025). At the same time, rising construction costs, constrained capital, demographic shifts, and slow permitting systems continue to limit delivery. In this context, considering innovative financing mechanisms are vital to scale housing solutions that are inclusive, sustainable, and resilient. This session examines how cities, public agencies, and private partners can develop new housing pipelines through practical tools and proven cases. Building on Dialogue 6’s call for more equitable and sustainable housing finance systems, the discussion focuses on three core approaches: • blended finance structures that combine concessional and market capital to reduce risk and catalyse private investment; • public–private partnerships that align incentives for long term affordability and accelerate project delivery; and • ESCO-style models that integrate energy efficiency retrofits and green performance into housing finance, lowering lifetime costs for households • updating subsidy systems and mortgage tools in Latin America and the Caribbean These perspectives will be shared by a varied panel of experts from public, private, and non-governmental sectors, building on the work developed by the European Bank for Reconstruction and Development (EBRD), The Inter-American Development Bank (IDB), the GIZ-Strengthening of Urban Resilience in the Areas of Supply Infrastructure and Housing (SUR) project and the C40 CFF, bridging finance, technical assistance, capacity building, and knowledge innovation. This session addresses global trends such as the demand for affordable rentals, cost-rent models, and policy changes increasing capital access for affordable housing developers. It aligns with the EU Affordable Housing Plan (2025), focusing on increasing supply, streamlining permits, encouraging investment, lowering energy costs, and assisting vulnerable populations. Participants will explore how partnerships between international financial institutions, national and local governments, housing providers, and private capital can deliver robust, long‑term investment pipelines.