Housing Supply in Algeria: Affordability Matters Rather Than Availability

This paper analyses the performance of the housing supply sector in Algeria. The country is witnessing a high rate of urbanization, and a fast growing labor force. The effects of housing policy on labor market, and ultimately economic growth are important. Similarly, policies that cause housing costs to rise significantly can have a much greater effect on the poor than does, for instance, a relatively small housing subsidy program. Accordingly, the scope of the research expanded to consider these broader issues, even if the focus continued to remain on how policies could be designed to improve the situation of the poor. After the introduction, the structure of the paper discusses briefly the methodology used. Then it presents the housing situation, policies and practices, followed by the dynamics of the housing sector. The main findings of the study, low levels of affordability and related problems are presented. Finally the study presents recommendations to help to improve the situation.