Naima Onamika
Commissioning Editor, The Oniket Bulletin
Dhaka, the capital of Bangladesh, is the country’s centre of economic activity, administration, education, and employment. Home to more than 25 million people, the city serves as the driving force behind national economic growth. At the same time, uncontrolled urbanisation, unplanned housing, severe traffic congestion, environmental pollution, and inadequate civic services are steadily turning it into one of the world’s least liveable cities. The greatest burden now falls on the middle class, people who are neither poor enough to qualify for social assistance nor wealthy enough to absorb the rising cost of urban life.
Thousands of families who once moved to the capital in search of better opportunities now struggle daily with rising expenses, constant stress, and growing uncertainty. While employment opportunities have expanded over the years, the cost of living has increased at an even faster pace, steadily weakening the financial security, health, and social stability of middle-income households.
This article examines the key factors behind this growing crisis and explores policy measures that could help improve the quality of urban life in Bangladesh’s capital.
The Unsustainable Burden of Housing Costs
Housing has become the greatest challenge facing Dhaka’s middle class. Nearly 68 percent of the city’s residents live in rented accommodation. According to several studies, including research conducted by the BRAC Institute of Governance and Development (BIGD), many households in the capital spend as much as 69 percent of their monthly income on rent, compared with the internationally accepted affordability benchmark of around 30 percent.
The sharp rise in rental costs over the past several decades has significantly reduced the quality of life for middle-income families. Many households are forced to cut spending on essential needs such as food, children’s education, healthcare, and savings simply to keep up with housing expenses. At the same time, the dream of owning a home has become increasingly unattainable. A standard 1,200 square foot apartment in Dhaka now costs around BDT 6 million or more, an amount that represents a lifetime of savings for many salaried families.
The situation is further complicated by weak regulation of the rental market. Because the Premises Rent Control Act, 1991 is not effectively enforced, many landlords increase rents without written agreements or proper legal procedures. Most tenants are reluctant to challenge these practices because replacement tenants are readily available.
Traffic Congestion: A Major Barrier to Productivity
Traffic congestion remains one of Dhaka’s most persistent urban challenges. The World Bank and several international organisations have identified the city’s inefficient transport system as one of the biggest obstacles to its economic competitiveness.
For many commuters travelling from Mirpur, Mohammadpur, or Uttara to workplaces in Motijheel, Karwan Bazar, or Gulshan, daily travel often consumes three to four hours. This results not only in lost personal time but also in lower productivity, strained family relationships, and long term physical and mental health consequences.
Although projects such as the Metro Rail and the Elevated Expressway have improved mobility in certain parts of the city, a large proportion of residents still lack access to safe, reliable, and punctual public transport. Traffic congestion therefore continues to impose substantial economic costs on both individuals and the city as a whole.
Pollution and Public Health
Dhaka frequently ranks among the world’s most polluted cities. Air pollution levels regularly exceed the safe limits recommended by the World Health Organization. Most low- and middle-income residents do not have access to technologies or housing conditions that can protect them from poor air quality.
The problem extends beyond air pollution. Unsafe water supplies, inadequate waste management, and recurring waterlogging have become major public health concerns. Accumulated waste in open spaces, weak drainage systems, and the spread of mosquito borne diseases continue to increase health risks across the city.
Respiratory illnesses, skin diseases, eye infections, and other pollution related health problems have become increasingly common. The cost of treating these conditions places additional financial pressure on middle-income families who are already struggling with rising living expenses.
The Growing Shift to the Urban Fringe
To escape the high cost of housing, many middle-class families have moved to surrounding areas such as Savar, Keraniganj, Purbachal, and Narayanganj. Although larger homes are often available at more affordable prices, this choice brings new challenges, including long commuting hours, limited healthcare facilities, fewer quality educational institutions, and inadequate civic services.
In reality, most residents of these suburban areas continue to travel to Dhaka each day for work, education, and healthcare. As a result, savings on housing are frequently offset by higher transportation costs and longer travel times, limiting any meaningful improvement in overall quality of life. Without carefully planned urban expansion, these surrounding areas also risk developing many of the same problems that currently affect Dhaka.
The Time for Policy Reform Is Now
Dhaka’s middle class forms the backbone of the country’s economy, public administration, education, and service sectors. Despite their contribution, their quality of life continues to deteriorate. This is not only a social concern but also a significant long-term risk for Bangladesh’s economy and urban development.
Several policy reforms deserve immediate attention.
First, the Premises Rent Control Act must be effectively enforced through digital tenant registration systems and greater transparency in rent determination. Second, affordable housing projects for middle and lower middle-income households should become a national priority through partnerships between the government and the private sector.
Third, the expansion of Metro Rail, Bus Rapid Transit (BRT), intercity public transport, and integrated transit oriented urban planning should be accelerated. Fourth, air pollution control, efficient waste management, safe water supply, and the expansion of green public spaces should be recognised as essential components of urban development rather than optional improvements.
Conclusion
Dhaka’s middle class is not asking for special privileges. It seeks only a city where families can live with dignity, raise children in a safe environment, reach workplaces on time, and save for the future. The future of the capital does not depend solely on skyscrapers, flyovers, or luxury housing developments. It depends on the millions of people whose daily work keeps the city’s economy functioning. If the middle class continues to face rising living costs, pollution, traffic congestion, and growing uncertainty, Dhaka’s economic growth will struggle to remain sustainable over the long term. A more liveable, inclusive, and sustainable Dhaka will require planned urban development, effective governance, and public policies that place people at the centre of city planning.
