Housing

During and after World War I, with the growth of industry, the housing market expanded and the housing demand was able to fuel a construction boom between 1890 and 1910. But by 1920 there was a shortage of building materials, which created the beginning of a large backlog of housing production as the population of the city continued to grow. The high demand for housing influenced the amount of rural and agricultural land being taken over by urban development. New districts were born to house the wealthy who were able to move from older parts of the city in order to gain more space and public amenities.

During World War II nearly all the housing construction stopped, and while great numbers of migrants flooded the city to fill industrial jobs that emerged because of the war-related decrease in production. In 1960 less than 3,000 building private permits were issued, some of which were not constructed. In 1961 only 3,235 permits were issued, at an annual population growth rate of 4%, this small number of permits did not begin to address the pressing need for housing in Cairo. Illegal housing structures began to increase in number as one result of the housing shortage.

Sometimes referred to as squatter settlements, the areas of built up illegal dwellings began to noticeably appear after World War II and dramatically grew between . These squatter settlements have created a slum ring, or "ring of poverty" surrounding the city, and the numbers of people living in these squatter settlements continues to rise. Illegal construction on the roofs of buildings is another form of squatter residences. Although the law only prohibits units made of "permanent" materials, permanent homes are constructed on top of buildings in all the older, poor sections of the city. There are estimates that more than 500,000 people live on roofs.

The housing shortage in Cairo is mainly due to the continued growth of the population, yet another factor is how urban Egyptians have started to desire single family homes, or units to live alone in, a different value than the traditional Muslim household with extended families. There has also been a lack of professional real estate services in the city to aid in the proper functioning of the housing market for those who have enough money to move.

The percentage of new housing units that were constructed illegally in Cairo's recent past range from 50% to 84%. And although the construction is theoretically illegal people are rarely prosecuted. There are many problems associated with the continued growth of squatter settlements. "Businesses and trade are not regulated, taxes are not collected, and the community develops its own mechanisms of law enforcement. The growth of illegal settlements and communities … presents a political and economic predicament, if not challenge, to the Egyptian state" (Singerman 131).

The Greater Cairo Planning Commission was established in 1965 to address many urban issues, including housing. In 1994 the federal government adopted a new plan to address the city’s housing issues.  The government is trying to lure people away from Cairo and Alexandria by establishing new industrial cities. Four satellite cities are planned near Cairo and 6 have been planned in other parts of Egypt to divert the flow of people into the large urban centers. In the 1980s government tax incentives were used to draw industry to locations away from Egypt’s metropolitan areas.