Four billion low-income consumers make up the majority of the world's population and constitute the base of the economic pyramid. These consumers represent significant opportunities for market-based approaches to better meet their needs and increase their productivity and incomes. Spending on housing by those at the base of the pyramid reflects strong consistent demand, with people willing to spend a fair share of their income on their home. However, informal home ownership poses a barrier to service delivery, as many governments require proof of title to receive benefits and municipalities are reluctant to connect undocumented homes to utilities when they have no legal means to collect unpaid fees.

2. The Housing Market The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid http://www.wri.org/thenext4billion

4. Base of the Pyramid (BOP) spending on housing reflects consistently strong demand – people are willing to spend a fairly consistent share of their income on their home.

14. Informal home ownership poses a barrier to service delivery. Many governments require proof of title before a household can receive social benefits. And municipalities often are unwilling to connect undocumented homes to water, sewer, and electricity networks, since they have no legal recourse to collect unpaid fees from a home that – in the eyes of the government – does not exist.