The urbanization of Phnom Penh, Cambodia’s capital city, has seen its population rise rapidly as people migrate towards the city in search of employment and education opportunities. But slow development of adequate and affordable housing, by both the government and the market, has led to a significant mismatch in housing supply and demand, driving people towards substandard housing in the face of no alternative. Through analysing current initiatives in Phnom Penh that aim to encourage the development of adequate and affordable housing, this paper will investigate how efficient the Royal Government’s intervention on taxes and regulations to private construction firms have been for the motivating the provision of adequate and affordable housing to low and middle income families in Phnom Penh. Comparative case studies focusing on initiatives implemented around the world provide discussion on possible solutions to this mismatch, after which policy solutions are put forth in an attempt to facilitate the development of adequate and affordable housing for Phnom Penh’s growing population.