A law or just a hypothesis? A critical review of supply and demand effect on the affordable residential markets in developing countries

Despite the many efforts exerted in improving the housing sector in different parts of the world, housing crisis are still growing, especially in developing countries. However there is an oversupply of units in the housing markets, the relationship between supply and demand still imbalanced. This is due to a large gap between the units’ prices offered in the market and the financial capabilities of most of the citizens. So, delivering suitable units to low income people in Third World countries should include some categories that have been illustrated in this study. In general, this paper explains the reasons for the high prices of residential units in the markets, in order to know the reasons for the imbalanced relationship between both supply and demand. On the other hand, a literature review of some developed countries has been discussed, in order to know the ways in which these countries had achieved their huge progress in the housing field. These countries have turned from being underdeveloped countries to high developed countries; by strengthen their competitive situation in the global housing market over the years. As a result, general guidelines were drawn in this study for improving both supply and demand in housing markets of Third World countries.