Affordable Housing in the Philippines

“More than just a roof to keep our people safe from external threat, a shelter is where values are formed, hopes and dreams are built, and the true meaning of family is defined,” said President Rodrigo Duterte at the 7th National Developers’ Convention of the Organization of Socialized Housing Developers of the Philippines (OSHDP).

All Filipinos dream of having a home, but as prices soar, will this dream be just that – a dream?  The results of a University of Asia and the Pacific (UA&P) survey show that over 800,000 families in the Philippines would be unable to afford a house priced above P365,000 ($8200). With all of these considered, where can we find affordable housing in the Philippines?

According to Lamudi, house hunters from Quezon City topped potential online clients for all the three categories: socialized housing (42.98 percent), economic housing (38.57 percent) and low-cost housing (40.03 percent). This was seconded by Makati City—socialized housing (17.70 percent), economic housing (20.58 percent) and low-cost housing (21.25 percent).

To make affordable housing possible, we need to look first for easier finance schemes and lower interest rates. For instance, in the recent financing program of Pag-IBIG fund, the lowest interest rate they offer to members is 5.5% for a one year fixed-pricing period.

In the above categories from Lamudi, Manila-based house searchers accounted for 7.57 percent, 10.09 percent and 10.19 percent; while those from Bacoor comprised 7.30 percent, 7.66 percent and 5.23 percent. Meanwhile, the share on inquiries of web-based seekers from Davao City stood at 7.82 percent for socialized housing; Cebu City, where you’ll find La Aldea del Mar at 5.14 percent, economic housing; and Pasig, 5.44 percent, low-cost housing.

The affordability of housing has been harmfully affected by rapid urbanization. The solution to this problem starts with more proactive engagement of private investors in the national agenda. For instance, infrastructure projects such as the Cavite–Laguna Expressway and the NLEX–SLEX Connector Road have been proven to be helpful. A public rental housing program has likewise helped ease the financial burden of housing to salaried employees.

According to Lamudi, Quezon City was the top choice for low-cost housing (23.39 percent); Davao City (20.92 percent), economic housing; and Rodriguez in Rizal province (23.78 percent), socialized housing. Caloocan and Quezon City were the only locations in Metro Manila that made it to the top five of any categories. Cavite was well-represented with four areas searched; Rizal province and Bulacan also made it to the list.