Home Ownership and Rental Trends Across Pakistan’s Regions
Pakistan, a country of over 240 million people, has approximately 38.29 million households, with about 81.9% of homes being owner-occupied and 11.9% rented. The housing situation varies greatly across its provinces and regions, influenced by factors such as population density, affordability, and household size. In Punjab, the most populous province, the population density is 622 people per square kilometer, with an average household size of 6.4. Despite this high density, Punjab’s home ownership rate is quite high, at 84.3%. This is partly due to the rural areas, where land is more affordable, helping balance the overall home ownership rate despite higher housing prices in urban centers like Lahore, where the price can reach 20,000 rupees per square foot. Even though urban residents face affordability issues, many people in Punjab still manage to own homes, a pattern that is unique compared to other highly populated regions.
How Living in Cities or Countryside Affects Housing Trends
In Sindh, the situation is somewhat different. It has a population density of 395 people per square kilometer and an average household size of 5.6. Here, only 76.1% of households own their homes, which is lower than in Punjab. This can be attributed to the challenges posed by rapid urbanization, especially in Karachi, where housing costs soar to 19,500 rupees per square foot. Many people live in rental housing due to the high cost of purchasing a home in the city. Compared to other provinces, the smaller household size in Sindh could also be a factor in the lower home ownership rate, as it becomes harder for smaller families to pool resources for home purchases. In rural areas of Sindh, home ownership is much higher because land is less expensive and many households own inherited property. However, the migration of people to cities like Karachi for jobs further strains the urban housing market, causing rental rates to rise. This rural-to-urban shift impacts both housing affordability and availability in major cities.
Balochistan, on the other hand, tells a different story. It is the largest province by area but has a very low population density of just 43 people per square kilometer. This low density, combined with a predominantly rural population, makes housing more affordable. As a result, Balochistan has the highest home ownership rate in Pakistan at 85.8%, with an average household size of 6.4. The housing market in Balochistan is vastly different from urbanized regions like Sindh and Punjab, where space is limited, and property prices are much higher. Meanwhile, Islamabad, despite being the capital city, faces unique challenges. With a very high population density of 2,609 people per square kilometer and housing prices reaching 32,300 rupees per square foot, it has the lowest home ownership rate in Pakistan at 53.3%. The high cost of living and smaller household size of 5.7 makes it difficult for many residents to afford home ownership in Islamabad.
