Housing unaffordability will remain a defining economic and health challenge through 2040, with the World Economic Forum (WEF) and Marsh warning that financial stress, poor health outcomes, and wealth erosion will compound without intergenerational solutions. In 20 of 21 analyzed countries, monthly mortgage or rental payments exceed 33% of income—the threshold for affordability.

Severe Housing Burden in Emerging Markets

In Nigeria, Colombia, India, Indonesia, Vietnam, Brazil, and Mexico, housing costs surpass 100% of average monthly earnings. Even where prices fell relative to wages—such as Brazil, India, and Indonesia, where prices dropped over 15% in the past decade—affordability has not improved.

  • 20 of 21 countries exceed the 33% affordability threshold
  • 7 nations (Nigeria, Colombia, India, Indonesia, Vietnam, Brazil, Mexico) have housing costs over 100% of earnings
  • Brazil, India, and Indonesia saw price declines >15% over the past decade, yet payments still outstrip earnings

Intergenerational Housing Models as Solutions

The WEF highlights emerging models to address housing challenges, including intergenerational collaboration. Projects in Spain (Kuvu), the UK (Appleby Blue Almshouse), and Hong Kong (Forward Living) demonstrate how affordability, community, and quality can coexist in housing policy.

In Spain, Kuvu connects older homeowners with young renters, reducing loneliness while providing income and affordable housing. London’s Appleby Blue Almshouse, a 2025 RIBA Stirling Prize winner, reimagines social housing for older adults, freeing up larger family homes. Hong Kong’s Forward Living applies Nordic design to institutional care, prioritizing dignity.

Economic and Demographic Pressures

Between 2025 and 2040, high-growth economies will see rapid aging, forcing younger workers to balance housing costs with saving for longer lives and multigenerational care. Expensive housing may push people into poor-quality, isolated homes, creating a cycle of financial stress, medical expenses, and reduced savings. Younger adults, blocked from wealth accumulation, are turning to risky financial strategies like cryptocurrency speculation.

The WEF concludes that housing must be reframed as a lifelong issue, not a generational one, to drive better outcomes before the 2040 demographic shift peaks.