A major new international study led by The University of Manchester has revealed how policymakers around the world are becoming far more active in constructing affordable housing. Drawing on evidence from cities including Salford, Shanghai, Nairobi and Paris, the research shows how governments are stepping in where private markets have failed - reshaping housing systems, markets and state institutions in the process.
Key findings
- Governments across the global North and South are increasing their role in delivering affordable housing
- States are adopting new tools to influence housing supply, finance and land development
- Public-private partnerships and new financial models are being used to support large-scale housing
- Cities are experimenting with different ways to balance social need and market pressures
- Salford and Shanghai highlight contrasting but equally interventionist approaches
What did the study find?
Led by Dr Tom Gillespie, the study provides one of the first global comparisons of how states are responding to a growing housing crisis affecting billions of people.
Drawing on research from Shanghai, Salford, Nairobi, Paris, Casablanca and Rome, it shows that governments are increasingly stepping in as private markets struggle to deliver adequate and affordable homes at scale.
While previous decades favoured light-touch state involvement, this is now changing, with governments taking a more active role in shaping housing systems.
How are governments responding?
The research shows that states are adopting a wide range of new approaches to influence housing supply, finance and land development.
In many cases, this includes experimenting with public-private partnerships, land value capture and new state-backed financial mechanisms to make large-scale housing programmes viable.
Across all six cities, the researchers identified common themes, including what motivates governments to intervene, how new financial and institutional tools are being used, and how risks in housing markets are being redistributed.
What is happening in Salford?
Salford is highlighted as one of the most distinctive examples in the study.
Within England's market-driven planning system, the local authority has developed an unusually interventionist approach. While earlier regeneration focused on property-led development such as Salford Quays, more recent efforts have aimed to address the lack of affordable housing.
From 2016, the Council began redirecting developer contributions into a council-owned company to build new social housing. These homes are let at below-market "Salford rents" and are exempt from the national 'right to buy', helping to protect them from speculative pressures.
Although still relatively small in scale, the model is identified as an example of local state action designed to "de-financialise" housing while still working within a market-led system.
What about Shanghai?
Shanghai offers a contrasting but equally interventionist model.
After decades of market-driven housing growth, the city has shifted towards a more active role, using state control of land and developers to deliver affordable homes for different social groups.
Policies include shantytown renewal, shared ownership schemes and subsidised rental housing, aimed at tackling rising property prices while supporting social stability and inclusion.
Why is this shift happening?
The study highlights a broader global shift away from reliance on private markets alone.
As housing affordability crises deepen, governments are increasingly intervening to address gaps in supply and access. This marks the end of an era of minimal state involvement and the emergence of more active, experimental approaches to housing policy.
Researcher quote
"Our research shows that states are once again becoming central players in efforts to tackle the global affordable housing crisis, but this isn't a simple return to old models of public housing," said Dr Tom Gillespie. "Instead, we are seeing a wide range of new approaches emerging as governments try to balance social needs with the realities of financialised urban development.
What are the implications?
The researchers suggest that understanding how different cities are responding can help inform future housing policy.
By identifying shared patterns and innovative approaches, the study provides a framework for policymakers seeking to tackle housing crises in their own contexts.
Publication details
The study was published in journal Urban Studies.
DOI: https://doi.org/10.1177/00420980261436336
