The housing market in Kathmandu is characterized by extreme density, high demand, and skyrocketing property values. Internal migration from rural areas has placed immense pressure on the city's housing infrastructure. Consequently, land prices in central Kathmandu are comparable to major Western cities, making homeownership exceedingly difficult for the average citizen.
The traditional Newari architecture of closely packed brick homes with carved wooden windows is mostly preserved in the historic core. However, modern housing is dominated by multi-story reinforced concrete (RCC) pillar buildings. These structures often feature flat roofs and are built closely together to maximize small land plots.
Recent years have seen a boom in high-rise apartment buildings and gated housing colonies, catering to the upper-middle class and expatriates. Conversely, affordable housing remains a critical issue. The city struggles with informal settlements (known locally as sukumbasi), particularly along the banks of the Bagmati and Bishnumati rivers, where vulnerable populations live with limited access to basic municipal services.