Shanghai will proceed with its affordable housing program this year as the city continues to make efforts to improve the living standards of middle to low-income households.

Construction of 11 million square meters of affordable housing will begin in the city this year, Liu Haisheng, director of the Shanghai Housing Support and Building Administration Bureau, told a municipal conference yesterday.

Budget homes will account for 53,000 units, homes for relocated residents will total 42,800 units and there will be 40,000 units of public rent apartments.

The city's affordable housing program mainly consists of budget homes, houses built for relocated residents, public housing units for rental as well as some low-rent apartments catering to low-income families.

Under the plan, a total of 90,000 affordable housing units are supposed to be completed this year. The new supply of such houses to hit the market should reach 7.7 million square meters, or 110,000 units, in 2012.

The city has been working hard to increase the supply of affordable housing as high home prices have priced many out of the market.