World Economic Forum Warns of Global Housing Crisis Through 2040

The World Economic Forum and Marsh released a report warning that housing unaffordability is a structural problem that will remain a critical economic and health challenge through 2040. The analysis finds that in 20 out of 21 studied countries, monthly housing payments exceed 33% of monthly income, eroding individual wealth and threatening global financial stability.

The crisis is most severe in high-growth economies such as India, Nigeria, Colombia, Indonesia, Viet Nam, Brazil, and Mexico, where housing costs can consume more than 100% of average monthly earnings. The report notes that price corrections in markets like Brazil and Indonesia have failed to improve affordability.

This trend creates a triple pressure on younger generations, who must balance housing payments, retirement savings, and support for older adults. The report warns that these pressures may push residents into substandard housing or drive young adults toward risky financial speculations, including cryptocurrency.

To mitigate these risks, the organizations advocate for intergenerational housing models and policy interventions. The report cites specific examples of such models, including Kuvu in Spain, the Appleby Blue Almshouse in London, and Forward Living in Hong Kong, concluding that housing must be reframed as a lifelong issue to preserve social and financial stability.