Affordable Housing and Its Role in Achieving Sustainable Development

Housing is a fundamental pillar for ensuring social stability and driving economic growth, both of which are essential to achieving sustainable development. Access to safe and affordable housing enhances quality of life, reduces poverty, improves educational and health outcomes, expands employment opportunities, and promotes social equity.

Studies have shown that affordable housing strengthens families’ financial stability, reduces relocation frequency, and provides safe, healthy living environments. When housing costs are manageable, families can invest more in education, healthcare, and long-term planning. Housing is generally considered “affordable” when families spend less than 30% of their income on rent or homeownership.

Moreover, frequent residential moves, more common among low-income families, can destabilize children’s social environment, interrupt schooling, increase stress, and hinder the development of healthy peer relationships.

On the other hand, homeownership can serve as a long-term financial buffer and a driver for generational wealth, significantly improving quality of life. As health and education outcomes improve across the population, the state becomes better equipped to realize sustainable, comprehensive development.

Saudi Arabia’s leadership has long recognized this connection. Since the founding of the state, ensuring access to adequate housing, healthcare, and education has remained a national priority.

The National Development Fund (NDF) and its affiliated entities have played a central role in this effort by deploying development financing to support a wide range of economic and social programs.

Among these, the Real Estate Development Fund (REDF) stands out for its partnership with the Ministry of Municipal and Rural Affairs and Housing to provide innovative financing solutions. Since its inception, REDF has worked to expand homeownership through public-private collaborations that ensure housing access for all segments of society.

REDF continues to increase the supply of quality residential units delivered in a timely manner. One of its main targets is raising the homeownership rate among Saudi families to 70% by 2030, in alignment with Vision 2030.

In parallel, other development funds and banks under the NDF umbrella are also launching initiatives aimed at enhancing quality of life and promoting balanced economic growth. These efforts emphasize coordination between the public and private sectors to maximize impact.

Sustainable development requires ongoing collaboration across all sectors, housing, health, education, and income generation, to lay the foundation for a dignified, balanced, and prosperous society.