PHILIPPINE HOUSING policy is likely to be encouraging the wrong activities, judging by the condominium oversupply, which is taking place simultaneously with a backlog in affordable housing, a government think tank said.
“About 64% of Filipinos are between the ages 15 to 64. This is an opportunity for government to come up with a framework on how to serve the housing needs of this population,” according to Marife M. Ballesteros, vice-president at the Philippine Institute for Development Studies.
“We have a rising backlog in the midst of the oversupply of condominiums and problems with vacancy rates in socialized housing. And therefore, the question is: are we doing the right thing in terms of policies?” she said at a virtual briefing.
The Philippines faces a housing deficit of 6.5 million units, which could rise to 22 million by 2040 if not addressed, according to UN Habitat.
On the other hand, mid-market and upscale condominiums in the Philippine capital are in oversupply, with 81,400 unoccupied units, Leechiu Property Consultants said.
In their “Demographic Trends and Housing Patterns in the Philippines” study, Ms. Ballesteros and co-authors Jenica A. Ancheta and Tatum P. Ramos cited the need to address the demand for affordable housing.
“The difficulty to access housing also implies a slowdown in the rate of new household formation. Children, relatives staying longer in parental homes can lead to congestion as larger sized homes are even more difficult to attain in the market.”
Heads of household aged 25 to 34 have declined from 28% in 1980 to 20% in 2020. In contrast, households headed by those aged 35 to 64 have increased.
“From a housing perspective, these are households that own rather than rent, and have a lower demand for large-sized housing,” according to the authors.
Single-person households also saw a significant increase, more than doubling from 2.9% in 1990 to 9.1% in 2020.
“The housing problem in cities actually can endanger family institutions and impact children’s psychosocial development, which could be a cause of rising health and social problems in society,” Ms. Ballesteros said. — Beatriz Marie D. Cruz