The new administration should take a second look at the housing problem in the Philippines. A huge housing backlog in the nation is impeding economic growth and making life for the underprivileged harder.
A host of problems besets the housing sector. For many, owning a house in the Philippines remains prohibitive, given the rising cost of materials, the lack of affordable financing mechanisms and the inaccessibility of land.
But a group of housing developers has offered solutions to President Ferdinand Marcos Jr. through a legislative agenda that proposes a comprehensive public housing program and a homebuyer financing assistance plan.
Chamber of Real Estate and Builders Associations Inc. national chairman Charlie Gorayeb says his group is finalizing the legislative proposals as part of a five-point housing agenda that aims to build 500,000 housing units year, or a total of 10 million homes in 20 years.
The housing backlog has worsened in the Philippines despite a Constitutional mandate on the state to implement an urban land reform and social housing program for the underprivileged 35 years ago. The backlog is now affecting around 6.7 million poor families.
The housing sector is a critical link in the economy. Studies show it has a 3.4 output multiplier effect to and supports 80 allied industries.
In addition, the sector encompasses virtually all other areas, including women, children, vulnerable groups and health.
Housing also generates substantial direct employment, with an average of 120 and more man-days for the construction of each basic housing unit.
It is an economic driver—revenues and income generated from construction find their way into the national budget, which funds social services and other infrastructure projects.
The government’s poor housing record is evident on the rows of informal settlers dotting the nation’s rivers and other waterways, as well as railways and government properties.
These shanties and poorly-built structures are a reflection of government’s failure in the past to provide basic shelter to the underprivileged and poorest of the poor.