Poverty and disaster risk are also pervasive in urban areas. Generally, poor urban households derive most or all their income from work in the informal economy, meaning that precise figures on urban poverty are lacking. Housing is usually the principal economic asset of poor urban households, providing not only shelter and personal security, but also often their livelihood. Damage or loss to housing, together with essential domestic possessions, therefore, places enormous strain on household economies, given the high monetary cost of replacing lost assets, relative to low and irregular incomes, and the absence of insurance or safety nets. Urban poverty is now understood to have many additional dimensions - including 'voicelessness' and 'powerlessness', and inadequate provision of infrastructure and basic services. Most of the immediate causes of the deprivations associated with urban poverty are risk related.

Disaster risk is shaped by a range of social and economic factors that determine entitlements and capabilities. Access to services, political voice, and social and economic status directly affect disaster risk and resilience. Key factors in underprivileged areas include low-quality and insecure housing, which in turn limits access to basic services such as health care, public transport, communications, and infrastructure such as water, sanitation, drainage and roads. Higher mortality and morbidity rates among children, the elderly and women are directly linked to these different poverty factors.