The purpose of this paper is to examine the recent challenges faced by stakeholders concerned with providing socially minded housing in Cyprus in view of the increased need for affordable housing in the five years after the financial crisis, which hit Cyprus in the spring of 2013 and impacted households. The demand was exacerbated by the influx of immigrants from South-eastern Europe, the Middle East, and North Africa in the same period. The paper discusses these challenges by examining the historical context of providing socially minded housing in Cyprus since the first institutional attempts were made in the years following the Second World War. The paper also presents some case studies, which are illustrated with design proposals that are the results of research in design by students and staff in the Department of Architecture of the University of Cyprus.