Singapore’s former Prime Minister Lee Kuan Yew believed that homeownership was one of the foundations of a stable state. In his view, owning a home turns citizens into active participants in the country’s economic and social development.
Despite being five times larger than France and significantly bigger than most OECD countries, Kazakhstan still struggles to provide enough affordable housing for its people. Housing availability remains well below the standards seen in developed economies.
How much housing does Kazakhstan have?
According to the Bureau of National Statistics of Kazakhstan, the country’s total housing stock reached 434.3 million square meters in 2024. Of this amount, 287.1 million square meters are located in urban areas and 147.2 million square meters in rural areas. Over the year, the housing stock increased by 15.2 million square meters.
With a population of 20.5 million people, housing availability remains uneven across the country. Around 13 million people live in cities, where housing space averages about 22 square meters per person. In rural areas, 7.5 million residents have less than 20 square meters of living space per person on average.
The government plans to build 111 million square meters of housing by 2030, which could provide new homes for more than one million families. The development of the new city of Alatau in the Almaty region may also give additional momentum to the housing market. However, this alone is unlikely to solve the problem, especially as housing prices continue to rise.
Housing availability in OECD countries
Across OECD countries, housing is viewed as a key part of quality of life. As a result, living space typically ranges from 38 to 66 square meters per person. Governments actively work to reduce overcrowding and improve living standards.
Today, Kazakhstan remains roughly 30-50% below what is considered a comfortable international benchmark for housing availability. This gap exists despite the country’s vast territory and rapid urbanization.
One of the biggest barriers to affordable housing is the high cost of construction. A significant share of these costs comes from imported building materials.
The current state of Kazakhstan’s building materials industry
In 2024, Kazakhstan’s building materials industry produced nearly $3 billion worth of output, equivalent to KZT 1.34 trillion. This was 6.9% higher than in 2023. The increase was driven mainly by strong construction activity. The volume of construction work grew by 18.5% during the year. Investment in residential construction reached almost $7 billion, or KZT 3.54 trillion, up 14.7% compared to the previous year.
The largest production volumes were recorded in Astana, which accounted for 13.5% of total output, followed by Karaganda Region with 9.3% and Almaty Region with 9.1%. This highlights the concentration of the industry in Kazakhstan’s most urbanized and industrialized regions.
Exports of building materials reached $276.3 million, increasing by 11.8% compared to 2023. The main export products included refractory cement, Portland cement, reinforcing steel bars, ceramic insulating products, and ceramic tiles. At the same time, imports of building materials grew by 8.8% to $1.3 billion. The largest import categories included cement products, slag wool and mineral wool insulation, ceramic tiles, and Portland cement.
Recommendations
1. Expand modular housing construction to reduce costs, speed up housing delivery, and encourage internal migration to regions with strong growth potential.
2. Invest in next-generation autonomous infrastructure, including local water treatment systems, satellite internet, renewable energy sources, modular heating systems, energy storage facilities, and small modular nuclear reactors.
3. Introduce climate-focused territorial planning. Future settlements should be located based on long-term forecasts of water availability, temperature changes, and desertification risks through 2050. This would reduce future adaptation costs and help prevent climate-driven migration within the country.
4. Develop networks of specialized small and medium-sized towns around existing single-industry cities. These communities could focus on agriculture, tourism, logistics, manufacturing, and other sectors. This approach would make better use of existing infrastructure, diversify local economies, and improve resilience during crises.
5. Apply the “15-minute city” concept from the start. Schools, healthcare facilities, shops, sports centers, and public services should all be within walking distance for residents.
6. Expand the “Digital Nomads” initiative and support remote work. Affordable housing, reliable internet access, and targeted tax incentives could help attract professionals who work remotely.
7. Create a national settlement reserve in single-industry towns. This would include land banks and ready-to-use development plans that could be activated quickly during emergencies, natural disasters, or large-scale migration events.
Yerlan Karimov, independent expert, specifically for www.economyKZ.org
