PHILIPPINE

PERSPECTIVE ON HOUSING
Current Housing Needs Demand and Supply
HOUSING
The Philippine housing industry believes
that every Filipino family has the right to
live with dignity in the comfort of one’s
own home regardless of economic status.
It aims to eliminate the housing backlog
by the year 2030.
HOUSING
The Philippine housing sector has
enormous potential for growth, as
demand for living spaces
continue to increase. Through several
industry-led initiatives, the sector hopes
to sustain its
robust growth and development – at
affordable prices for the Filipino
household.
HOUSING
Towards this vision, the industry's objectives are:
1. Increase housing production capacity to
sustain 12% annual volume growth
2. Implement a comprehensive government
housing subsidy for targeted segments
3. Improve the regulatory environment for
housing
4. Generate and mobilize funds for end-user
financing
 INDICATORS OF HOUSING
PROBLEMS
The problem of housing illegal occupancy
of land or of housing space & subsequent
formation of squatter communities.
Squatting – described as the illegal
occupancy of land owned by
others, became a preferred
solution to the housing problem by
those with little or no resources
• Professional squatters & squatter
syndicates - refer to those occupying a
vacant land owned by others in order to sell
rights for its use to others.
Makeshift housing – refers to the use
of salvaged or improvised
construction materials for the roof or
walls used with other construction
materials.
Makeshift houses
Metro Manila & NCR 61,842 26% of total urban &
rural makeshift dwellings
in the counry
Nationwide 145,402 62.5% of total urban &
rural makeshift dwellings
nationwide

Per capita income among makeshift dwellers

Lowest income Php 4,000 (9.7%)
Modal income Php 10,000-14,999.00
Average family income Php 30,000 per year
50,000 +
Makeshift dwellers:
 don’t have access to a potable water
system (26%)
 most shared community system (51%)

• don’t have toilets

(38%)
• burned garbage
(1/3%) Endriga et al.
1996:35)
PCUP – Presidential Commission on
the Urban Poor
• No. of squatter urban poor families –
717,328
• 16% - lived in danger areas
• 22% - in sites for infrastructure projects
• 35% - government –owned areas for
priority development
• 27% - privately-owned land
Local government
• No. of squatter urban poor
families – 432,450 households
• 23% - occupied gov’t lands
• 15% - danger zones
• 40% - infrastructure sites
• 22% - privately owned land
National Housing Authority
• No. of slums & squatters dwellers –
406,000 households
• Covered major thoroughfares,
esteros, creeks,waterways,
previously cleared squatter areas
In Metro Manila there were about
581,059 informal settlers (data from
HUDCC as of July 26, 2010)
• unsanitary conditions, congestion,
and limited access to basic urban
services (e.g., health centers, schools,
waste disposal, safe water supply)
A slum area describes:
• lack of provisions for electricity, water,
roads, waste disposal and drainage , a
situation as dangerous to health as to
the environment
Government solution:
• clear the areas
• resettle the people in far-flung vacant
lands
on-site slum upgrading, providing
services & implementing the zonal
improvement program
 HOUSING DEMAND
• New households/new stock

• Old, dilapidated stock need to be

upgraded

• Available stock but not responsive to

needs
• Housing Backlog - households
with substandard units including
those in places with sites & services
programs which were being
upgraded.

• Future Needs – additional & new

houses required by new households
Housing needs – housing backlog +
future needs

• Double-up-households – more than

one household in one dwelling unit
The housing backlog is 3.9 million
households. Assuming that production of
housing units would average 200,000
units every year from 2012 to 2030, the
backlog would still persist and hit 6.5
million households by 2030. The highest
demand would come from the economic
housing segment, followed by socialized
housing, and lastly by low-cost housing.
The low-cost, socialized, and economic housing units
account for a large share of housing production. From
2010 to 2011, housing production in the high-end, mid-
end, and low-cost categories increased, while
production of houses in economic and socialized
housing was relatively flat. From 2000 to 2011,
economic, socialized, and low-cost housing cornered
close to 70% of total housing production. During this
same period, the socialized segment accounted for 27%,
the economic segment accounted for 29%, and low cost
segment 13%.
As of 2011, there are 3,164 players in the housing
industry. Despite the huge number of firms
engaged in housing, only a few firms dominate the
industry. Most of these firms are highly
integrated developers that are engaged in various real
estate developments besides housing.
Many other firms are into retail real estate, hotels,
commercial office buildings, and industrial
estate development.
The Subdivision and Housing Developers’ Association
(SHDA) is the largest organization of
housing developers in the Philippines, counting 160
members from its chapters in Luzon,
Visayas, and Mindanao. Other industry participants are
members of the Chamber of Real Estate
and Builders’ Associations (CREBA), the Real Estate
Brokers Association of the Philippines,
Inc. (REBAP), the Philippine Association of Real Estate
Brokers (PAREB), the National Real
Estate Association of the Philippines (NREA), and the the
Organization of Socialized Housing
Developers of the Philippines (OSHDP).
• Future housing needs - projected
increase in households plus housing
required to replace losses due to
obsolescence.

• NEDA– National Economic

development Authority
• projected housing need as : housing
backlog & future needs
• Private sector - economic housing
• Government – socialized housing

• Solution to housing need -

government assistance in the
production of housing units (private
sector) and government loans to
acquire house & land
• National Urban Development and
Housing Framework (NUDHF) 2009-
2016 - largely urban phenomenon
• The magnitude of housing need - 5.8
million housing units in 2016
• In Metro Manila, total backlog -
496,928 housing units
 HOUSING FOR WHOM?
Who are in need?
Who are the poor?
• Income
• Expenses
• Size of households
• Dwelling type
• Educational attainment of household head
• Membership in urban poor organizations
• Source of livelihood
• Ability to meet basic needs
Who are the poor?
• Squatters, slum dwellers, makeshift
dwellers, landless poor & others.

Squatter – legal term referring to those

occupy land without the consent of the
owner.
• Slum dweller – emphasizes blighted
physical conditions of urban poor
communities

• Makeshift dweller – refers to those

staying in dwelling units that are made
of scrap materials & are usually in a
state of disrepair.
• Urban Poor – individuals or families
residing in urban & urbanizable areas
whose income or combined household
income falls within the poverty
threshold
Homeless
• no designated shelter
• moves from one place to another
• found everywhere; seeks shelter in
streets, parks, under bridges, etc.
Illegal Occupant
• has designated shelter
• creates a temporary or permanent
structure to which they can return
• abounds in areas close to major urban
centers, along river banks and close to
municipal garbage dump
 MEASURES OF POVERTY

Poverty measures used in the

Philippines are:

1. Food threshold or subsistence

threshold
2. Poverty threshold or poverty
line
• Food threshold is measured in
terms of a food basket which satisfies
all (100%) of the Recommended
Dietary Allowance or RDA for energy

COMPUTATION:

 FT (food cost) x 30.4 (approximate no. of days

per month) to get monthly food threshold

 Or 365 days (30.4 days/month x 12 months)

to get annual FT
 Poverty Threshold or Poverty Line

• Poverty threshold – monthly income

required to satisfy 100% of nutritional
requirements and other needs of a family
of six

Poverty Threshold (PT) = FT – Food threshold

ER – Expenditure ratio

ER– ratio of food expenditure to the total

basic expenditure
or
Food Expenditure
Total Basic Expenditures of Family Income
and
Expenditures
Survey (FIES)
sample families
falling within
five percentile
below the food
threshold)
3. LACK OF ACCESS TO HOUSING
FINANCE
Reasons that the poor cannot have
access to such housing schemes:
• Gap between the income of the poor
• Costsof land and house construction
• Termsof housing finance
 4. INSECURITY OF LAND TENURE
• Housing problem as lack of security of
land tenure.
• Community Mortgage Program (CMP)
making available affordable loans to the
urban poor - pioneering effort of
government at socialized housing
• Subsidies and effective bureaucracies
were needed.
5. LACK OF COMPREHENSIVE POLICY &
INSTITUTIONAL FRAMEWORK

• continued increase of
squatters
• among the poor, incomes
have become differentiated
• security of land tenure as a
solution requires that land
be available for socialized
housing
• squatting - migration of The Causes:
poor rural people to Urbanization,
urban areas Migration, Poverty
• Migration - attributed to
urbanization
• Data on income show
the incidence of poverty
in many areas of Metro
Manila.