"Renovation of shanty towns bears many low-income families' hopes in improving housing conditions and is also a focal point in pushing forward people-oriented urbanization," said Li in a written instruction.
Although progress has been made on this issue, challenges remain, Li said.
Local governments of different levels should ramp up efforts including providing financial and tax support, creating new mechanisms for private capital to take part in the task so as to meet the deadline.
China has set goals to construct 36 million affordable houses between 2011 and 2015.
Over the past four years, more than 20 million affordable houses were completed across the country, with 12 million under construction, and the assistance fund for building the houses has reached 710 billion yuan, the Ministry of Housing and Urban-rural Development data showed in May.
