In most discussions and current literature on urban housing. in developing countries, one finds statements describing urban growth as a situation where cities suffer from severe housing shortage, poor quality of housing stock arid environment and the lack of, or woefully deficient, basic urban services.
It is also pointed out, sometimes quite meticulously, that the problems of housing are further compounded by the extremely low level of incomes, disparate income distribution patterns and high costs associated with urban infrastructure and housing. The income levels of 50 to 60 percent of the urban households in most cities of the developing world are regarded as inadequate to pay for the use of even the acceptable minimum level of urban services and amenities. For example, a study by the People's Homesite and Housing Corporation of the Philippines states that only 12 percent of the urban families could afford the open market cost of housing, and the remaining 88 percent could do so only with indirect subsidies. Similar examples are available from other countries like India, Indonesia, Pakistan, and Sri Lanka. Indeed, low-income levels and population growth strain the existing housing situation of squatter settlements, slums and shanty towns, etc., and deterioration the quality of life of a large mass of urban dwellers.