Incremental housing is a gradual process where low-income families pay for and construct housing over time through a step-by-step process. It provides an alternative to expensive formal housing by allowing residents to improve their homes according to their means. Issues like rapid urbanization, lack of affordable housing, and the formation of slums have increased the need for incremental housing solutions. Effective approaches involve providing access to land, a basic core structure, and supporting policies to facilitate long-term housing development by residents.