The lack of housing and the existing low quality housing create one of the largest potential markets in Iraq. Unfortunately, it only recently started getting significant media coverage and funding. The current housing shortage is estimated at 1.4 million units. In addition, prison and school construction is desperately needed. Like much of the Arab world, deeds and titles are unclear or non-existent making ownership of land and other property unclear. This also affects financing, mortgages and other banking functions.

The 2004 budget funds two new projects of 504 apartments each. Three low-income projects (1,320 apartments) are underway with 2003 budget funds. In addition, CPA made a special allocation of $100 million for 13 additional projects of 504 apartments each. Bids on these contracts opened on January 10. Construction should begin by the end of February. Access to housing is also essential. CPA has completed 23 road and bridge projects with 112 projects underway in addition to the road projects falling under USAID and Bechtel.