The housing shortage in the Philippines has long been a subject of varying estimates, with the commonly cited figure being 6.5 million units. However, this number warrants careful reexamination.
The estimate of 6.5 million originated from a study commissioned by the Housing and Urban Development Coordinating Council nearly a decade ago. The study used data from the 2010 Census of Population and Housing (CPH) to project housing needs up to 2016 and additional requirements until 2022.
Unfortunately, the figure has often been misunderstood. In truth, only about two-thirds of the total represented actual housing needs. The remaining portion accounted for acceptable housing that could deteriorate over time due to neglect, natural disasters, and other factors are classified as “reserves for inventory losses.”
Another source of confusion lies in the interchangeable use of the terms housing backlog and housing need. These two terms differ significantly, as housing backlog refers to the shortage of housing units due to unmet needs, while housing need encompasses the backlog and the new, emerging needs. They are often used interchangeably in public discussions, resulting in misleading statistics.
To provide a more accurate picture, the Department of Human Settlements and Urban Development (DHSUD) commissioned the Philippine Statistical Research and Training Institute, the original preparer, in 2023 to update the figures using data from the 2020 CPH, with select assumptions. The updated study revealed that as of December 2022, the backlog stood at approximately 2.2 million units, or just a third of the previously projected figure.
By 2028, the housing needs are projected to reach 3.4 million units. If acceptable housings are reserved for inventory losses, an additional 3.5 million may be added. Consequently, claims of 22 million unit housing needs by 2040 are not supported by current data and are grossly distorted.
The economic divide: Affordability and availability
Regardless of these numbers, every housing need corresponds to real individuals and families–people whose quality of life and future depend on acceptable shelter.
For many of the most vulnerable and underprivileged Filipinos, the lack of affordable housing forces them to settle in precarious areas, such as waterways, steep slopes, and other “danger zones”, where they are exposed to floods, fires, and other calamities. These unsafe living conditions deprive them of basic amenities and perpetuate the cycle of poverty and vulnerability.
At the core of the housing problem lies the issue of affordability and supply. Housing prices have steadily risen over the years, particularly in urban centers, while wages have not kept pace. As a result, homeownership has become increasingly difficult for many, compelling families to resort to informal settlements or temporary housing arrangements.
Despite previous government interventions, the problem persists due to systemic and entrenched issues. One major constraint is the limited and costly supply of land suitable for socialized housing. Land prices, especially in metropolitan areas, far exceed the financial capacity of many income earners.
Government bureaucracy poses another significant obstacle. Intricate and lengthy regulatory processes delay project approvals and impede the timely delivery of affordable housing units. This administrative friction slows down the provision of the housing supply.
Previous resettlement programs also exposed another gap–the lack of integrated community planning. Many relocation or resettlement sites were developed without access to essential services, including educational facilities, or far from employment opportunities. Consequently, displaced families often sell or abandon their new housing units, returning to informal settlements in urban areas, restarting the cycle of displacement.
A bold path forward: The Expanded 4PH Program
The challenge is great, but the opportunity for transformation is even greater.
The government’s response is embodied in the Expanded Pambansang Pabahay Para sa Pilipino (Expanded 4PH) Program, the current and enhanced administration’s flagship initiative on housing and urban development.
The program shifts the focus from mere construction targets to the needs and welfare of housing beneficiaries. It broadens the approach beyond a single modality of vertical housing development, incorporating initiatives that address affordability, sustainability, and community well-being.
Recent efforts include the provision of low-interest, subsidized loans through the Pag-IBIG Fund, complemented by government-funded interest rate subsidies under the General Appropriations Act. Interest rates for socialized housing units have been reduced from 6.25 percent to 3 percent, and further down to 1 percent after subsidies. For horizontal units priced between P850,000 and P1.8 million, interest rates are now 4.5 percent. These measures ensure more affordable monthly amortizations for low-income families.
The Pag-IBIG Fund has also introduced a new home improvement program to prevent disrepair and address acceptable houses that are included in the “reserves for inventory losses”.
The Expanded 4PH prioritizes in-city and near-city vertical housing to maintain livelihood access and social networks. DHSUD and its attached agencies have also intensified efforts to grant land entitlements to qualified families in designated housing sites and will be undertaking rental housing projects soon.
Moreover, through the Social Housing Finance Corporation, the Community Mortgage Program has been revived and revitalized with enhanced provisions to enable informal settlers to acquire ownership of the land they currently occupy.
Partnership and collaboration
Housing development is not just about building shelters; it is about creating livable, thriving, and resilient communities where families can prosper. It is for these reasons that developing houses require shared responsibility among all stakeholders. The private sector, in particular, must view socialized housing as a strategic investment in national development, in addition to social responsibility.
National government agencies and local government units must actively identify land for housing projects, facilitate access to housing finance, and streamline the permitting process.
DHSUD, for its part, continues to issue policies that also promote data-driven, climate-responsive, green, and inclusive planning, promoting responsible urban development and sustainability.
Towards collective action
The Philippine housing challenge is not only a policy issue—it is a national imperative that calls for unity and cooperation.
By working together, both the government and the private sector can transform the housing landscape into one where every Filipino family has access to a dignified, secure, and affordable home.
This vision, rooted in resilience, inclusivity, and prosperity, can only be realized through sustained collaboration and collective action. By working together, we can realize this vision and ensure that no Filipino is left behind.
This article is based on my presentation at the 2025 CREBA National Convention held in Baguio City on October 16, 2025.
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