The city of Dhaka has grown from a population of half a million to four million in 30 years. As the housing supply has failed to keep abreast of this growth, there is now serious overcrowding in a rapidly deteriorating housing stock. The topography of the city, being surrounded by low lying land liable to flooding, is a serious constraint to growth. The lower income group has been increasingly forced to occupy peripheral, often low-lying land. This thesis examines the housing conditions of the lower income people to be found in pen urban areas of Dhaka; a survey has been carried out of 424 households in three areas of Mirpur, Hazaribag and Jurain and then analyzed with computer. Through an analysis of the current housing stock and the socio-economic characteristics of the inhabitants, the afforbility of future housing options is assessed, with respect to the requirements of reclaiming land liable to flooding and the current speculation in land suitable for development purposes; the response of the dwellers is also examined to ensure their participation in the incremental developments of their units.