PIDS: Most Filipinos can’t afford a house near jobs

*A government housing project in Naic, Cavite*

HOUSING remains inaccessible for millions of Filipinos because they cannot afford it, especially low-income and large families as well as those who live in highly urbanized cities, according to a study released by the Philippine Institute for Development Studies (PIDS).

In a discussion paper, PIDS researchers led by Vice President Marife M. Ballesteros said most households can only afford socialized housing, which is often located far from employment or livelihood centers.

The researchers also said the standard of 30 percent of income used to estimate housing affordability may be too high for low-income households.

“The inability of the government to maintain a pool of affordable lands in cities and urban centers will further limit the supply of affordable housing in Metro Manila and other urbanizing cities,” the authors also said in the study.

The researchers also estimated shelter poverty in the country and found that even if poor families received a downpayment of 20 percent to avail themselves of socialized housing, they would not be able to make the amortization payments.

“It further implies that poor families, even if they are given the opportunity to avail socialized housing, will not be able to pay their amortizations. In other words, poor families would experience housing stress even at the price ceiling intended to facilitate their access to housing,” the authors said.

The study also said the 30-percent income standard is widely used and an accepted measure of the extent of housing affordability in the country.

Section 2 of Batas Pambansa 220 (BP 220) provides that socialized and economic housing should be within low-income and average earners’ affordability level, which is at 30 percent of gross family income as determined by the National Economic and Development Authority (Neda).

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The article was originally published in Business Mirror and written by Cai Ordinario.