How Infrastructure is Transforming Housing Choices in the Philippines

The way Filipinos choose where to live is evolving, and infrastructure development is driving this transformation. With PHP 1.54 trillion allocated to major projects in 2024 alone, the country is seeing significant improvements in roads, transport systems, and interregional connectivity. These developments are expanding housing options beyond Metro Manila, creating new residential hubs and investment opportunities in emerging cities.

The Shift from Congestion to Connectivity

For decades, homebuyers prioritized properties within Metro Manila’s business districts, where employment opportunities were concentrated. However, this often came at the cost of long commutes and expensive real estate. Now, major expressways, rail systems, and bridges are reshaping how and where people choose to live.

The completion of projects like the North-South Commuter Railway, Cavite-Laguna Expressway (CALAX), and Metro Manila Subway is reducing travel times and making suburban living more convenient and attractive. As a result, Bulacan, Pampanga, Laguna, Cavite, and Batangas are experiencing a surge in demand from homebuyers looking for better accessibility and more affordable housing options.

The Impact of Metro Manila’s Traffic on Housing Preferences

Metro Manila’s traffic congestion remains a major challenge, ranking 27th globally in congestion levels and 14th in travel time according to the 2024 TomTom Traffic Index. Commuters lose an estimated 127 hours per year during rush hour, with an average travel time of over 32 minutes per 10 kilometers.

With this reality, many Filipinos are reconsidering their housing choices. Rather than endure daily traffic, more buyers are exploring homes in well-connected suburban cities where new transport projects are cutting travel times while offering a higher quality of life.

The Rise of Township Living

As connectivity improves, real estate developers are expanding master-planned communities and townships, integrating residential, commercial, and office spaces within a single location. Today, there are over 120 townships covering 134,000 hectares nationwide, offering residents the convenience of living near workplaces, retail hubs, and entertainment centers.

These townships cater to the changing preferences of homebuyers, who now prioritize walkability, sustainability, and smart living features. With work-from-home and hybrid work arrangements becoming the norm, these communities provide flexible and modern housing options that align with today’s lifestyles.

Affordability Challenges and Investment Opportunities

While infrastructure expansion is unlocking new residential markets, the rising cost of land, construction, and financing presents affordability challenges. However, developers and financial institutions are introducing creative payment terms, lower down payments, and flexible mortgage options to make homeownership more accessible.

For investors and homebuyers, emerging locations present strong opportunities. Properties in areas with ongoing transport projects are expected to appreciate significantly in the coming years, making them ideal for long-term investments. These areas not only offer more affordable real estate compared to Metro Manila, but also provide larger living spaces, modern amenities, and less congestion—key factors for those seeking a higher quality of life.

Looking Ahead: The Future of Housing in an Infrastructure-Driven Market

With continuous improvements in road networks, rail systems, and airport expansions, the Philippine real estate market is set for sustained growth. Homeownership is no longer limited to Metro Manila’s urban core—buyers now have greater location flexibility and more diverse housing choices.

For those planning to invest, understanding how infrastructure impacts property values is key. Areas that are currently more affordable but have upcoming transport projects will likely see strong price appreciation. Making strategic housing decisions early can lead to better returns and an improved living experience.

As the country continues to expand its infrastructure, real estate investment is becoming more dynamic than ever. The future of housing lies in accessibility, well-planned communities, and seamless mobility, where Filipinos can live, work, and thrive in a fully connected nation.

Source: Leechiu

Housing policy lags as 28% of Filipino families are now in extended households

The Philippine government should reform its housing policies as more Filipinos live with extended families — a sign that traditional family structures are shifting, according to the Philippines Institute for Development Studies (PIDS).

About 29% of Filipino households are no longer the traditional nuclear type, as more relatives resort to cohabitation to share in housing and other costs, PIDS Supervising Research Specialist Tatum P. Ramos told a recent webinar.

“They have decided to join their relatives in a household to gain support in growing their own family or [to manage] living and housing expenses,” she said, based on a PIDS statement released on Wednesday.

A PIDS paper cited the significant link between wealth and the likelihood of living in extended households.

“An extended family setup offers a resource-sharing opportunity and provides support for working young female adults who may not necessarily have the same amount of time for household management activities as before,” PIDS said.

Rising housing prices, especially in Metro Manila and in key cities, have forced households to share living spaces with relatives, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said.

“[There’s also the] lack of mass transport or train systems that would allow more Filipinos to live farther from central business districts to nearby provinces where housing is cheaper,” he added.

“The low attainability of housing in the Philippines is resulting in lower household formation with the rise of extended and multi-family arrangements and nonfamily housing arrangements (living alone or living with nonrelatives),” Ms. Ramos and her co-authors Marife M. Ballesteros and Jenica A. Ancheta said in the study.

“Government efforts to address this issue through a market-driven strategy should be reviewed, and housing affordability issues have to be closely examined,” they added.

Housing prices in the Philippines rose 6.7% in the fourth quarter of 2024 from a year earlier, according to the Bangko Sentral ng Pilipinas.

Mary Racelis, who teaches anthropology at the University of the Philippines, said housing policies should go beyond abstract models to address the lived experiences of the bottom 60% of the population — those who are underserved and priced out of formal housing markets.

She cited the need to understand the poor’s economic conditions to help design sustainable and inclusive housing plans.

“We should recognize that the informal settlers are not the problem, they are the solution,” she told the webinar, adding that informal settlers are not mere passive aid recipients.

Despite the wide membership of housing funds like the Home Development Mutual Fund (Pag-IBIG), the uptake of government assistance for housing finance remains limited, said Kevin Godoy, chief development specialist at the Department of Economy, Planning, and Development.

“Only 4% have government assistance as a financing source… considering that Pag-IBIG had 16 million members in 2024,” he pointed out.

He cited the importance of transport infrastructure, noting that long commutes rather than urban congestion alone are a major barrier to homeownership and household formation.

Mr. Godoy also sought the creation of a national rental housing program.

“We’re the only country in Southeast Asia that does not have a national program on public rental,” he said, noting how local governments have been left to experiment with rental solutions on their own in the absence of a national framework.

The Philippines faces a housing deficit of 6.5 million units, which could rise to 22 million by 2040 if not addressed, according to the United Nations Human Settlements Program.

Source: Business World

New legislators urged to freeze farmland conversions

Farmer organizations urged would-be legislators to file measures that would halt the conversion of farmland, citing the need to ensure food security.

Unyon ng mga Manggagawa sa Agrikultura (UMA) proposed that the 20th Congress consider a ban on land conversion by property developers.

“The country is losing precious agricultural land that could otherwise grow food staples like rice and vegetables to real estate projects for subdivisions and golf courses, commercial districts and pseudo-industrial zones,” it said.

It also called for measures to disincentivize farmers from switching away from staples to “plantation crops” like cavendish banana, pineapple, and oil palm.

“We cannot become food self-sufficient if the state prioritizes global market demand over domestic needs,” it added.

Agrarian reform beneficiaries are often forced to sell their land to developers due to unfavorable farming conditions, farmer organizations have said.

UMA is lobbying for the refiling of a Genuine Agrarian Reform bill, which seeks the distribution of land at no cost to farmer beneficiaries and the creation of cooperatives as vehicles for productivity.

President Ferdinand R. Marcos, Jr. in 2023 signed the New Agrarian Emancipation Act, which aims to condone all loans, including interests, penalties, and surcharges incurred by agrarian reform beneficiaries.

Farmer organizations have lobbied for the insertion of anti-land conversion provisions in a proposed Land Use Act, which was approved by the House of Representatives in 2023. The bill remains pending in the Senate.

UMA said legislators need to arrest the decline in the number of farm workers by improving their working conditions.

“The number of agricultural workers has long been on the decline — not because landless farmers are finally getting land, but because of rural wage discrimination against agri-workers,” it said.

UMA also pushed for the refiling of the proposed Rice Industry Development Act, which it views as an alternative to the Rice Tariffication Law of 2019.

The bill being backed by UMA seeks to increase rice industry productivity on a three-year timetable with funding of about P400 billion.

The allocations include a rice production socialized credit program (P25 billion), an accelerated irrigation development program (P45 billion), a post-harvest facilities development program (P30 billion), a research and development and extension services program (P15 billion, and a procurement program for the National Food Authority (P310 billion).

“The government needs to do more than bring food staples like rice directly to the market; it should also purchase directly from farmers, boxing out middlemen and, in particular, the rice cartel,” UMA said.

Source: Business World