ABSTRACT Employees housing is a major subsystem of housing sector in city scale. In Dhaka , extreme shortage of housing is followed by shortage of land, whereas in Khulna city the situation is not so critical due to the low demand and value of land. Being an administrative head quarter and industrial city Khulna city has potential demand for employees housing to accommodate the employees. In Khulna city employees housing occupies only 1.92% of total housing stock whereas the total employees both in public and private sector are 14.0%. Regarding the aspect, capital is being invested in employees housing sub-sector so there is the urge to create the effective demand of this sub-sector. But in Khulna city the demand for employees housing is not in the potential level from employee’s perspective. There are some inevitable factors like location in terms of transport cost for daily necessities, rent, living environment and floor space influences the demand of employees housing.