# Iraq housing shortage and land distribution efforts > Live situation record from CLSTR: https://clstr.news/situations/iraq-housing-shortage-and-land-distribution-efforts > Updated: 2026-08-24T17:42:09.000Z. Sources: 2. Developments: 2. Iraq is experiencing a severe housing crisis driven by high land and construction costs, inflation, and the concentration of services in major cities. The Ministry of Construction, Housing, Municipalities and Public Works estimates a deficit of approximately 2.3 million units, while the United Nations Population Fund reports that more than 3.5 million citizens live in informal settlements. The number of these settlements reportedly grew from 1,515 in 2013 to 4,670 in 2022. In response, the Iraqi government, led by Prime Minister Ali Al-Zaidi, plans to launch a digital platform on September 1 to initiate a ‘million residential plots’ project. This initiative aims to distribute land across 15 provinces to address a shortage estimated at over 3 million units. While 250,000 plots are prepared for the first phase, officials noted that integrating land distribution with affordable housing loans remains under study, as current financing through the Iraq Housing Fund and the Real Estate Bank is insufficient to meet demand. ## Timeline ### 2026-08-24: Iraq to launch million residential plots initiative in September Iraq will launch a platform on September 1 for its million-plot land distribution initiative, aiming to combat a massive housing shortage by providing land to citizens without prior property ownership. 2 sources. https://clstr.news/cluster/iraq-to-launch-million-residential-plots-initiative-in-september ### 2026-08-12: Iraq housing crisis: Informal settlements rise as costs soar Iraq faces a growing housing crisis, with over 3.5 million people living in informal settlements as urban expansion fails to meet demand due to high costs and concentrated services in major cities. 2 sources. https://clstr.news/cluster/iraq-housing-crisis-informal-settlements-rise-as-costs-soar --- Cite as: Iraq housing shortage and land distribution efforts. CLSTR, https://clstr.news/situations/iraq-housing-shortage-and-land-distribution-efforts