Building the foundations of happiness

October is National Shelter Month in the Philippines, a celebration to promote dignified, safe, and affordable housing for Filipino families. Led by the Department of Human Settlements and Urban Development (DHSUD), this year’s theme is “Build Homes, Build Happiness,” aiming to unite government agencies, private developers, and other stakeholders in the mission of providing Filipinos with one of the most fundamental of human rights: the right to adequate shelter.

“A home is where children feel safe to dream, where parents find strength, and where families draw comfort during difficult times. More than shelters, it is about building dignified lives,” DHSUD Secretary Jose Ramon Aliling said in a statement.

“In line with President [Ferdinand] Marcos, Jr.’s directive, we will intensify the promotion of a dignified life for our fellow Filipinos through decent housing and fast, transparent public service,” he said in Filipino.

Every October, the DHSUD and its key shelter agencies mount a month-long series of events across the country to advance the national housing agenda. Regional offices lead housing summits, community caravans, training programs, and project site visits designed to foster collaboration among stakeholders and open more pathways for Filipinos to obtain safe, affordable, and resilient homes.

First declared through Proclamation No. 662 in 1995, National Shelter Month underscores housing as both a foundation of nation-building and a collective duty, one that necessitates the cooperation of the government, private developers, and communities in the pursuit of inclusive human settlements.

THE ROLE OF THE PUBLIC SECTOR

As of 2023, according to the UN-Habitat Philippines, there is a backlog of 6.5 million housing units in the country, with an estimated 3.7 million informal settler families directly impacted by this deficit. Compounding the problem are the increasing rate of urban migration due to a host of factors displacing Filipinos from their homes, such as armed conflict, systemic inequity, and climate change.

Furthermore, the backlog is bottlenecked by declining housing production as result of slow bureaucratic, regulatory and approving procedures, a high reliance on private sector investment, and inadequate budget allocation for housing. It is highly likely this gap has widened since 2023.

The DHSUD has been established for this very purpose, as it serves as the Philippines’ lead agency for housing, human settlements, and urban development. Established on Feb. 14, 2019 through Republic Act No. 11201, it unifies housing policy, regulation, and planning under one institution. The law consolidated the functions of the former Housing and Land Use Regulatory Board and the Housing and Urban Development Coordinating Council, while transferring adjudication duties to the Human Settlements Adjudication Commission (HSAC).

As the government’s central policy-making and regulatory body for shelter and urban development, the DHSUD’s mission is to ensure that every Filipino has access to affordable, safe, and livable communities. It oversees four key shelter agencies: the National Housing Authority (NHA), which leads public housing production; the Pag-IBIG Fund, which mobilizes national savings and provides low-cost housing finance; the Social Housing Finance Corp. (SHFC), which implements socialized housing programs for low-income and informal settler families; and the National Home Mortgage Finance Corp. (NHMFC), which sustains affordable housing loans through a secondary mortgage market.

Each key shelter agency plays a role in the overall mission. For instance, the NHA this year made huge strides in furthering the administration’s flagship housing initiative, the Expanded Pambansang Pabahay Para sa Pilipino (4PH) Program. Last May, President Marcos signed into law a new measure expanding and strengthening the mandates of the NHA, and extending the agency’s corporate life by another 25 years effective July 31.

Among the important provisions of the new law is the inclusion of two expert parallel members with expertise in housing, urban planning, and development in the agency’s board to allow more active private sector contributions to the development of a more inclusive government housing program. Also included are provisions for three assistant general managers to enable more efficient management and operations within the agency’s day-to-day affairs, compared to only one in the old charter.

Meanwhile, agencies like the SHFC and NHMFC are working on ways to make housing more accessible. A recent example is a moratorium on amortization payments for borrowers affected by natural disasters such as Tropical Storm “Crising” and the southwest monsoon last July.

This temporary payment relief allows families to focus on recovery without the immediate pressure of monthly dues. It forms part of a broader government effort, alongside the DHSUD, NHA, and Pag-IBIG Fund, to provide financial breathing room and preserve homeownership stability for disaster-stricken communities.

For this year’s National Shelter Month, Secretary Aliling highlighted two key milestones that mark significant progress in tackling the country’s housing challenges. The first is a newly approved memorandum of agreement with the University of the Philippines (UP) to launch a pilot rental housing project for informal settler families within the UP Diliman campus — a pioneering initiative that aims to provide secure, affordable shelter in urban areas. The Home Development Mutual Fund, more known as Pag-IBIG Fund, have expressed support for this initiative as well.

“This is just the beginning,” Mr. Aliling said. “More rental housing projects will be rolled out in line with President Marcos, Jr.’s directive to ensure dignified living for all Filipinos.”

The second milestone is the forthcoming distribution of certificates of award to families who have lived for decades on lands covered by Presidential proclamations. This long-awaited step, he added, will finally grant thousands of long-term occupants the security of tenure and peace of mind they have sought for generations.

“When we build homes, we strengthen our nation. When we build happiness, we fulfill the highest purpose of public service, uplifting lives and giving every Filipino family the future they deserve,” Mr. Aliling said.

“Every home we build is a story of hope, and every family we serve is a testament to why public service matters. Together, we can make Bagong Pilipinas a reality — one home, one community, one future at a time,” he had said.

Source: Business World

Philippine housing prices rise in Q2

Philippine housing prices increased in the second quarter as consumers were less pessimistic about purchasing residential properties, the Bangko Sentral ng Pilipinas (BSP) reported.

The BSP’s Residential Property Price Index (RPPI) showed housing prices nationwide went up by 7.5% in the April-June period.

However, this was slower than the 7.6% annual growth seen in the first quarter and the 7.9% a year ago. Quarter on quarter, the RPPI rose by 4.2%, outpacing the 2.6% growth in home prices logged in the first quarter.

The RPPI measures the average price changes over time of various residential properties using banks’ data on actual housing loans. The central bank said the data gives insight on the real estate and credit market conditions in the Philippines.

However, home prices in the National Capital Region (NCR) went up by 2.4% in the second quarter, slowing from the 13.9% in the previous quarter and 9.3% last year.

Quarter on quarter, NCR housing prices contracted by 3.6%.

Outside of NCR (AONCR), home prices rose by 11.5% during the April to June period, faster than the 3% in the first quarter and 7.2% a year ago.

Balance Greater Manila Area (GMA) had the highest annual growth in housing prices at 13.2%, followed by Metro Cebu (11.5%), other areas in the Philippines (8.8%), and Metro Mindanao (7.7%).

CONDO PRICES SLUMP

By housing type, condominium unit prices dipped by 0.2% in the second quarter, a reversal from the 11.5% increase in the comparable year-ago period and the 10.6% growth last quarter.

The cost of houses, which include single-attached or detached units, apartments, townhouses and duplexes, rose by 13.1% year on year. This was faster than the 5.4% in 2024 and 4.5% in the first quarter.

Data from the central bank showed the median price for all housing types in the Philippines stood at P3.4 million in the second quarter. Condominium units had a median price of P3.8 million, while houses cost around P3.1 million.

Houses in the NCR were the most expensive at a median price of P7.01 million, while houses in other areas in the Philippines were the cheapest at about P2.7 million.

In the second quarter, residential real estate loans (RREL) granted for all types of housing units in the country grew by 14.7% year on year.

“This uptick aligns with the results of the Q2 2025 Consumer Expectations Survey, which showed a less pessimistic outlook among consumers regarding the purchase of a house and lot,” the central bank said.

“Reflecting this shift in sentiment, a larger share of households considered Q2 2025 as a favorable time to purchase residential property,” it added.

By area, loan availments increased by 10.3% year on year in the NCR and by 16.6% in the AONCR. It was highest in the Balance GMA at 22.5%, followed by Metro Cebu at 18.7%, Metro Mindanao 12.9%, and other areas in the Philippines at 4.3%

The BSP said 74.6% of RRELs availed in the April-June period were for new housing units, while 25% were for pre-owned properties and 0.4% for foreclosed.

Over half or 60.4% of the loans were used for houses, while 39.6% were for condominium units.

Banks approved the most housing loans in Calabarzon (33.2% share) and NCR (28.5%), followed by Central Luzon (11.9%), Central Visayas (8.8%), Western Visayas (6.6%), Davao Region (4.2%) and Northern Mindanao (2.3%).

Source: Business World

How Trump Might Fix A ‘Housing Emergency’ in the US

There are no easy solutions to ease the housing affordability crisis, and some may run counter to President Trump’s other goals. 

The ballooning costs of buying a home have put homeownership out of reach for many Americans for quite some time, and last week the White House weighed in. “We may declare a national housing emergency in the fall,” Treasury Secretary Scott Bessent told the Washington Examiner in a Labor Day interview, but he provided scant detail beyond suggesting that the administration is looking at ways to standardize building codes and trim closing costs.

Some experts are concerned that such an emergency declaration would amount to an empty gesture. Although an affordability crisis is undoubtedly ongoing, there are no simple solutions, and many steps that could address the issue run counter to President Donald Trump’s other goals. “There are no shortcuts to answering this problem, because it took a long time to create,” says Andrew Wells, chief investment officer of investment management firm SanJac Alpha. “Either mortgage rates have to come down, or the cost of things associated with homeownership like insurance have to come down.” Of course, there is no guarantee that any patches are in the works.

Moreover, it “remains unclear exactly what kind of emergency measures the administration could take to address housing, or even if using emergency powers in this way is lawful,” notes Realtor.com senior economist Joel Berner. Assuming a declaration is issued, there are practical limitations on what the White House could do to address long-term affordability issues. Some of the president’s keystone policies, like tariffs and mass deportations, are contributing to housing costs, given increasing prices for things like lumber, steel, and labor. Although most of the market is focused on interest-rate cuts that Trump has demanded, which may come as early as this month, they won’t necessarily bring down mortgage rates.

After the last round of rate cuts in 2024, mortgage rates actually finished the year higher, as they (and long-dated Treasuries) take into account other data, including inflation and economic expectations. Likewise, Wells warns that if the government offers a tax rebate or subsidy, that only goes so far in helping Americans buy an “unaffordable asset, and you’re back to printing checks again,” like the pandemic-era stimulus checks that contributed to inflation and higher housing prices.

The housing bubble and subprime mortgage crisis helped kick off the 2008-09 global financial crisis, so there was a reluctance to build homes in the aftermath. However, some 20 million households have been formed since, and only 18 million homes have been built. There are some actions the president could try to increase supply, but these are likely to be met with resistance.

“Overriding, or at least standardizing, local laws on zoning would be a great step toward allowing builders to deliver the inventory needed,” says Berner. “Streamlining the permitting process and putting fewer restrictions on builders would be a great way to augment home inventory.”

That probably would boost builder stocks. The iShares US Home Construction exchange-traded fund is slightly trailing the S&P 500 index this year, although some builders, like D.R. Horton and PulteGroup, have surged more than 25%. Others, like Lennar and NVR, have lagged behind peers. Buddy Hughes, chairman of the National Association of Homebuilders trade group, also hopes deregulation will be part of any executive action, arguing for a “secure and affordable supply chain of building materials, and enacting policies that address a lack of skilled labor in construction.

A proactive agenda to bring down material, construction, and labor costs will also help.” The problem is that many high demand areas, like the Northeast, are likely to want to keep their local regulations for safety and environmental reasons—and blue states are more likely to challenge changes in court. Still, any well-reasoned action would be better than nothing.

According to the builders’ trade group, 75% of American households can’t afford a median-price new home. That means there could be ample public support to smooth the way for any popular policies that ease this crisis. Yet any lasting solution will necessarily be multipronged and take time to implement. No matter what happens, it seems as if the current house of cards can’t stand much longer 

Source: Barrons