ECONOMIC FEASIBILITY OF AFFORDABLE HOUSING DEVELOPMENT IN URBANIZED REGIONS WITH HIGH REAL ESTATE COSTS
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Abstract
The persistent imbalance between housing supply and demand in high-cost urban areas remains one of the most significant challenges facing contemporary urban economies. Rising land prices, increasing construction costs, demographic pressures, and limited availability of affordable housing have widened the affordability gap for low- and middle-income households. Addressing this challenge requires not only financial support mechanisms but also innovative approaches to project management, engineering, and construction delivery. The subject of the study is the economic feasibility of affordable housing development and the role of small and medium-sized enterprises (SMEs) in improving the efficiency and scalability of affordable housing projects. Particular attention is given to the integration of engineering solutions and management practices within the construction process. The purpose of the study is to examine the structural determinants of housing affordability, evaluate existing financial and construction models, and assess the effectiveness of an integrated engineering and management methodology designed to support affordable housing delivery. The study also investigates the potential contribution of SMEs to reducing housing shortages through flexible and adaptive operating models. The methodology is based on a systematic review and critical analysis of recent academic literature on housing economics, urban development, construction management, and affordable housing policy. Comparative analysis is used to assess alternative construction and financing approaches and identify factors affecting project feasibility. The study further evaluates the author’s integrated engineering and management methodology, which combines turnkey renovation criteria, project management tools, and affordable housing requirements into a unified operational framework. Principles of lean construction and emerging technologies are also considered. The results indicate that affordable housing projects achieve greater economic viability when engineering decisions and project management processes are integrated. The proposed methodology contributes to improved cost control, higher construction quality, more efficient resource allocation, and shorter project delivery times. The analysis also demonstrates that SMEs represent an important but underutilized component of the affordable housing supply chain due to their flexibility, responsiveness to local market conditions, and capacity for innovation. The conclusions of the study suggest that methodology-driven and market-responsive approaches can significantly improve affordable housing delivery. The integration of engineering, management, lean construction practices, and innovative technologies enhances project performance while reducing costs. Broader involvement of SMEs, supported by appropriate public policies, may contribute to narrowing the housing affordability gap and promoting sustainable urban development.
How to Cite
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affordable housing, housing affordability, construction methodology, SMEs, lean construction, modular building, urban economics
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