Collaborative efforts to solve the Philippines’ housing crisis

Millions of people around the world live their lives in search of a place they can call home. After all, access to adequate shelter remains a challenge, particularly in areas affected by natural disasters, conflict, or rapid urban growth.

Homelessness charity Depaul International estimates 4.5 million people are experiencing homelessness in the Philippines, and about two-thirds of this number are in Metro Manila.

To combat this, both government initiatives and the efforts of private organizations and nongovernment organizations are addressing the housing crisis, which often becomes magnified during times of peril and uncertainty.

The main housing program of the administration of President Ferdinand R. Marcos, Jr. is the Pambansang Pabahay Para sa Pilipino (4PH) Program, which aims to build 6.5 million housing units through government-led housing initiatives and address the country’s current housing backlog by building one million housing units yearly until 2028.

Established under Executive Order No. 34, s. 2023, the government’s flagship program was conceptualized to address the country’s current housing needs and features an innovative framework that has eased the burden brought by two major bottlenecks in the housing sector: affordability and access to funds.

Headed by the Department of Human Settlements and Urban Development (DHSUD), the latest news on the project includes the launch of a website dedicated solely to the endeavor, offering information and services related to the government’s flagship program. Additionally, it has been reported that a total of 42 private developers have committed to deliver 251,846 socialized housing units under the administration.

In the same way, the National Grid Corporation of the Philippines (NGCP) has also helped the cause in recent years. Together with Gawad Kalinga, the NGCP turned over a housing project in 2020 to the City Government of Valenzuela, which cost over P82 million, and comprised of 22 three-storey low-rise buildings with 792 units.

As the power grid operator, the NGCP worked with the City of Valenzuela to relocate residents previously living within the transmission right-of-way corridor to prevent any accidents from happening due to their proximity to the high-voltage power lines. The housing project is located in Disiplina Village, Lingunan, Valenzuela City, and is a joint in-city housing project for informal settler families.

Several developers have also given back to communities through their corporate social responsibility. Among the big names providing housing assistance is the real estate arm of the Lucio Tan Group, Eton Properties, which has provided safe, dignified housing for underserved communities in Nueva Vizcaya, in partnership with the Tan Yan Kee Foundation.

Named the Eton Bahay Liwanag Project, the developer recently turned over four newly built homes in the area to carefully selected families based on their circumstances and resilience despite difficult living conditions in the hinterlands of Nueva Vizcaya.

Launched in 2019, the Eton Bahay Liwanag Project has completed 12 homes in the province to date.

Similarly, DMCI Homes has been actively supporting social housing initiatives in partnership with Habitat for Humanity Philippines and local governments through its Kaakbay sa Pamayanan program.

The company’s efforts include a P4-million donation to help construct homes for poor families and teachers in the Bistekville I project in Quezon City, as well as sponsorship of 92 homes at a relocation site for informal settlers in Parañaque. Volunteers from DMCI Homes also contribute directly by painting and maintaining these houses, helping to provide safe, affordable shelter for disadvantaged communities.

Nongovernment organizations (NGOs) have also done their part in building homes for Filipinos. For example, Habitat for Humanity Philippines brings people together to build homes, communities, and hope, “seeking to put God’s love into action.”

In 2019, Habitat for Humanity joined forces with the Hilti Foundation to expand the use of disaster-resilient Cement Bamboo Frame Technology and help close the housing gap in Negros Occidental. Named the Negros Occidental Impact 2025 (NOI25), the initiative seeks to create sustainable communities where homes are safe, green, resilient to disasters, and supportive of families’ long-term security and well-being. Six years later, the NGO has built over 400 disaster-resilient homes and helped families live in sustainable communities.

Likewise, the Manny Pacquiao Foundation, named and founded on behalf of boxing legend Manny D. Pacquiao, has programs aimed at creating lasting change for communities and inspiring people to make a tangible difference in the world. Among the group’s programs is a housing project that has already constructed 300 homes in three locations for hundreds of families in need.

Addressing the housing crisis in the Philippines requires the combined efforts of government programs, private developers, and NGOs working to provide safe, affordable, and resilient homes. Through these partnerships, more families can gain the shelter that they need to thrive.

Source: Business World

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