The unbearable cost of living in Dhaka

The victory of 33-year-old Zohran Mamdani in the Democratic Party primary for the 2025 New York City mayoral election has sent shockwaves through the American political establishment. He was up against a wall of prejudice due to his faith, skin colour and opposition to the slaughter of Palestinians. His socialist platform also ran counter to mainstream political orthodoxy. Yet, he prevailed because his bold proposals to tackle the city's affordability crisis struck a chord with voters. Chief among them was his promise to freeze rents for millions of rent-regulated tenants, a policy that earned him widespread support across New York. A candidate with Mamdani's background would not have won unless he could energise the electorate, and he could not have energised them unless he directly addressed in his speech their struggles.

The quick rise in rents was a rallying point for New Yorkers who supported Mamdani, and it is also a big problem for people in Dhaka. Like New York, the city is in the grip of an affordability crisis. When we were growing up in Dhaka a few decades ago, the rent was high. Today it has reached a crisis point. It has gotten to a situation where many middle-class families now allocate over half their income to rent, leaving little for groceries, childcare or education. In an ideal world, owning a home or flat should be within the means of people in their twenties and thirties, because it is a stage of life when they begin raising families. But the reality is that homeownership would be nothing more than a pipe dream for the lot of them unless they are employed in high-paying white-collar jobs, as even renting would put a strain on their budget. 

Rising cost of simply sleeping under a proper roof in the city is particularly punishing for honest government employees. These employees often work in transferable positions, and many are posted to Dhaka every few years. But with salaries that for most are their only source of income, maintaining a decent standard of living after paying rent is extremely difficult. Many are forced to live apart from their families as a result. The same holds true for private-sector employees and members of the working class. They have little choice but to migrate to Dhaka for work, as their hometowns offer limited economic opportunities. While Dhaka may offer low-paying jobs to them, it denies them an affordable shelter. 

For those struggling to make ends meet, this is deeply frustrating. It is not even just about having too little in the wallet. When a man does not have money, his own family do not like him and lose respect for him. This can lead to distrust between him and his children, his wife or whoever he lives with. That creates a ripple effect that can slowly tear a family apart. Simply put, if a man cannot provide for his family, he will often find himself alienated, mistrusted, or worse, shouldering the blame for every hardship. 

Meanwhile, a significant portion of property owners including retired or serving government officials, businessmen or politically connected elites operate with near-total impunity. These property owners are widely perceived to have acquired their wealth through questionable means. Their primary motivation often appears to be the accumulation of rental income, with little regard for the financial hardships faced by their tenants. Tax evasion among them is rampant. Many of their properties are conveniently left out of tax filings as owners are unable to account for the source of their investment. Even when declared, properties are often undervalued and rental income is frequently understated so they can dodge paying their fair share. When these landlords increase rent, tenants rarely object for fear of reprisal or bureaucratic red tape. The House Rent Control Act of 1991 which is the legal framework meant to protect them is obsolete. Its ridiculously unrealistic requirement that annual rent be limited to 15 per cent of a property's market worth would bankrupt a lot of tenants if it were implemented. With this law in place, few people dare to take property owners to court, allowing landlords to dictate terms without challenge. 

Housing is widely acknowledged as a basic human right. The Constitution of Bangladesh in Article 15 recognises the right to housing as one of the fundamental responsibilities of the state. Although in practice housing remains a privilege for a few, even an average working-class individual with monthly incomes between Tk 12,000 and Tk 20,000 possesses an inherent right to adequate housing. The government bears a significant responsibility to devise effective strategies for ensuring it.

One such strategy that the government could adopt involves investment in public housing units. This way, government can rent flats to individuals across diverse income brackets at affordable rates. Another strategy is decentralising population concentration from Dhaka's congested core. The concentration of employment opportunities and public institutions in Dhaka fuels housing demand beyond the city's carrying capacity. Major infrastructure projects such as the satellite towns being developed around the capital should be fast-tracked, and key government offices relocated to these new hubs. Efficient rail or rapid transit connections to Dhaka would ensure that people can commute without being forced to relocate their entire lives to the capital. The government can also borrow a page from Mamdani's playbook and explore legally binding rent freezes for designated areas, especially where demand outstrips supply. Such a policy can offer immediate relief to millions of renters and potentially help control inflation by stabilising a significant component of household expenditure. The idea is not to vilify property owners but to restore balance in a deeply unequal housing market.

Mamdani's rise in New York proves that people are looking for bold solutions to their most pressing struggles. The majority of Dhaka's 15 million residents, silently enduring the burden of ever-increasing rent and housing costs, are also waiting for relief. It is time for the government to take greater responsibility for it and act.

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