The issue of human settlements has recently gained much momentum particularly in cities across the world due to rapid rates of urbanization. The housing crisis is manifesting mostly in the cities of the developing countries; the urban poor population is left with no option, they are continuously living in substandard and unsustainable housing conditions due to the desperate housing need. There is a growing trend of migration into urban centers in the developing countries as well as natural population increase in the cities. The inevitable development is the rapid growth of urbanization. The theories on urbanization suggest that the responsible government and local council authorities must be prepared to address socio-economic issues such as the provision of formal housing, infrastructure development and employment creation. The governments in developing countries are struggling to balance economic development and the provision of social services. As a result, the human settlement sector is suffering lack of prioritization when it comes to budget and resource allocation. The resultant factors are the overcrowding of the urban population, high housing backlogs and dilapidation of infrastructure visible mostly in the major cities of the developing countries.