This work discusses the housing shortage in Al-Diwaniyah City in 2025 using Geographic Information System (GIS) and Analytic Hierarchy Process (AHP). A suitability model was developed using seven criteria, such as nearness to infrastructure, environmental limitations, and protection of agricultural lands. The 2025 housing land deficit is 11.77 km2. Total residential land demand is projected to reach 59.16 km2 by 2033, requiring an additional 22.75 km2 relative to the existing 2025 residential area. In addition, the spatial analysis of the revised Master Plan indicates that 9% (3.23 km2) of the planned residential areas are in the appropriate zones while another 30.66% (11.0 km2) are in inappropriate zones. These results underline the importance of aligning the spatial suitability maps with urban development plans to address the housing shortage according to the Iraqi planning standards.