Housing Policy Issues In A Rich Country With High Population Growth: The Case Of Riyadh, Saudi Arabia

Riyadh is a dynamic city characterized by extremely rapid growth over the past quarter of a century. Nevertheless, its housing stock is generally of high quality. This article explores the city's current and future housing issues. It does so in the context of projecting Riyadh's housing needs, both physical units and corresponding investment, over the 20†year period beginning in 2004. The analysis was carried out using the Housing Needs Assessment Model developed by the Urban Institute and applied in a number of countries. The results show that the great majority of Riyadh's residents will continue to have very favorable housing conditions. Still, several percent of all households (more than 50 000 in the middle of the projection period) will face housing affordability problems. We argue for implementation of a rental housing allowance program to address this issue. Additionally, it is an open question as to whether the Kingdom of Saudi Arabia will be able to continue to provide housing consistent with the aspirations of middle class families. The analysis pays particular attention to the presence of a large number of guest workers and of the practice of employer†provided housing.