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Is Housing Affordable in the Philippines?

he Philippine Institute for Development Studies (PIDS) held a public webinar on November 10, 2022, from 2:00 PM to 4:30 PM via Zoom.

This virtual event featured the PIDS study titled Measuring Housing Affordability in the Philippines authored by PIDS Vice President Marife Ballesteros, Supervising Research Specialist Tatum Ramos, and Research Specialist Jenica Ancheta.

Understanding housing affordability is key to addressing the housing problem. This study evaluates housing affordability in the Philippines using conventional approaches. It compares Residual Income Method estimates with those from the 30 percent of income standard that is commonly used as a measure of housing affordability in the country. The authors note that the 30 percent of income standard overestimates housing affordability among the poor and underestimates among those in the upper income levels relative to the Residual Income Method. In other words, the poor and low-income households are not able to afford housing priced at 30 percent of their income, while the middle income to rich are able to afford housing priced at more than 30 percent of their income.

The study also found that the structure of family (i.e., size and presence of children) affects housing affordability. A comparison of household affordability levels with the available housing supply in the formal market shows that a typical household in the Philippines experiences housing stress due to inadequate affordable housing specifically near places of work or livelihood and the low capacity to qualify for mortgage financing. This situation tends to worsen over time as the growth of residential prices surpasses the growth of incomes.

Given the housing affordability problem in the country, the authors provided recommendations to make housing more affordable to Filipinos.  

A copy of the study may be downloaded from this link:


Presentation of Dr. Marife Ballesteros and Ms. Tatum Ramos, Vice President and Supervising Research Specialist, Philippine Institute for Development Studies

Presentation of Ms. Rowena Dineros, OIC-Director, Public Housing and Human Settlements Service, Department of Human Settlements and Urban Development

Presentation of Mr. Santiago Ducay, Executive Director, Subdivision and Housing Developers Association, Inc.

Presentation of Dr. Winston Conrad Padojinog, President, University of Asia and the Pacific