TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES- MANILA

363 Casal St. Quiapo, Manila, 1001 Metro Manila

Department of Architecture

CASE STUDY - HOUSING CHALLENGES AND DEVELOPMENT

In Partial Fulfillment of the

Requirements for AR 551-ARCH51S2 - Housing

Submitted by:
Abuda, Angela Rose
Amora, Andreia Lenra
Canuto, Aroma Cane
Dela Cruz, Ryan
Loching, Jories Jean
Marco, Brandon
Reoma, Bryan
Sespene, Brian Carlo
Traquena, Janica Mae

Submitted to:
Ar. Cherieca Kim Parungao

September 13, 2024

 CASE STUDY - HOUSING CHALLENGES AND DEVELOPMENT

1. Why do Filipinos continue to struggle with owning a home?

Struggles of Filipinos in owning a home in the Philippines

Many Filipinos still prioritize owning a home, but for many, this goal remains out of reach with an
estimated 6.7 million backlog reported in 2015. Research conducted at the University of Asia
and Pacific indicated that the Philippines will require 12.3 million housing units by the year 2030.
Furthermore, the construction of homes decreased over the past two years.

Prior to the decrease in housing production, the housing sector achieved its goal of constructing
one million homes in 2016. However, due to various industry challenges, it is uncertain if the
target of building two million homes by 2022 will be met as outlined in SHDA's Roadmap to
2030.

Another issue adding to the growing housing backlog is the antiquated building regulations that
SHDA is working to simplify. Many of these codes, such as building codes and structural codes,
are still in effect as they were established in the 1970s and 1980s. As times evolve, laws must
also evolve, but as laws are set by legislation, updating them requires the creation of new laws.
Due to numerous challenges confronting the nation, implementing new construction design
codes is not a top priority.

Furthermore, SHDA is advocating in terms of reducing the housing backlog is the retention of
the tax incentives upon the passage of the second Tax Reform for Acceleration and Inclusion
(TRAIN-2) bill or TRABAHO.

Since health is the primary concern for humans, Filipinos prioritize their basic daily needs over
finding a place to settle. Their income will be used primarily for purchasing food. Low-income
families may lack sufficient income to afford that. Filipinos are recognized for their ability to
adapt, always adjusting to any given situation. Hence, certain individuals look for places that
offer protection without making a long-term financial investment. Furthermore, in our nation,
property ownership is only within reach for individuals who earn a sufficient income or are
wealthy due to the high cost of land. Prices are on the rise, yet people's salaries remain
stagnant. As a result, individuals with a higher income may be able to purchase additional land
beyond what they currently own. Filipinos not only find it difficult to purchase a home, but also
face competition from others looking to buy.

Another contributing factor to the increasing housing backlog is the availability and affordability
of socialized housing. For the last 10 years, SHDA was in the forefront of introducing the
concept of “in-city” socialized housing, presenting studies and meeting with the different
concerned government agencies, and eventually lobbying for the inclusion of in-city socialized
condominiums in order to address the lack of in-city socialized dwellings. RA 10884 eventually
lapsed into law—raising hopes of our minimum wage earners to afford a home within the cities
where they work.

SHDA is also pushing for the preservation of tax incentives after the approval of the second Tax
Reform for Acceleration and Inclusion (TRAIN-2) bill or TRABAHO to address the housing
backlog. Being committed to assisting the average Filipino in owning homes, the SHDA has
actively participated in and advocated for the government's efforts to decrease the housing
backlog.

After Republic Act No. 11201 was enacted by President Rodrigo Duterte on February 14, SHDA
collaborated with the government to formulate the IRRs for establishing the Department of
Human Settlements and Urban Development (DHSUD). This newly established agency will
serve as the primary national government entity overseeing housing, human settlements, and
urban development.
 2. What design approaches for socialized and economic housing in the country have been
explored so far? Cite 3 examples of each

Design approaches for socialized and economic housing in the Philippines

For Socialized Housing, the design approaches that have been explored or have developed so
far are the; Sustainability, Disaster-Resiliency, Innovative.

An example of the Sustainable Socialized Housing in the Philippines is the “A Holistic

Development of Bamboo Based Housing, a Socialized Housing project by BASE Bahay
Foundation, Inc.” They are catalyzing Bamboo housing and Bamboo industry developments
through partnerships, livelihood generation and quality homes.

Regarding the Disaster-resilient example of Socialized Housing Project, there is the BAHAY,
BUHAY Project by Habitat for Humanity Foundation. A Terwilliger Center for Innovation in
Shelter. Which makes a study on how to put an Innovation regarding the disaster-resiliency of
social housing in the Philippines particularly in Cebu.

And for the Innovative

example of Socialized Housing in the Philippines, there is the High Density Housing Program of
SHFC (Social Housing Finance Corporation). The SHFC, through the HDH project as its
flexible, affordable, innovative, and responsive (FAIR) shelter solution to address the housing
and shelter needs of the ISFs, will be offering a near se relocation or in-city high density housing
facilities of ISFs who have been organized by civil society organizations and adopting the
Community Mortgage Program’s (CMP) community-driven approach in setting the people’s
plan.

3. What are the main demographic trends affecting housing needs (e.g., urbanization,
population growth, migration)?

Main demographic trends affecting housing needs

Population Growth: The Philippines has a high population growth rate, with a population
exceeding 115 million as of 2023. This ongoing growth increases demand for housing, both in
urban and rural areas.

Urbanization: There is a strong trend towards urbanization, with more people moving to cities in
search of better economic opportunities and services. This shift is driving demand for affordable
housing and infrastructure improvements in metropolitan areas, particularly in Manila and other
large cities.

Young Population: The country has a relatively young population, with a median age around 25
years. This demographic is likely to drive demand for starter homes, rental properties, and
affordable housing solutions as they enter the workforce and start families.

Household Size and Composition: Household sizes are gradually shrinking, influenced by
cultural shifts and economic factors. Smaller households and an increase in single-person
households are creating a demand for different types of housing, including smaller units and
more flexible living arrangements.

Rising Income Inequality: Economic disparities are increasing, leading to a growing divide
between those who can afford high-end housing and those who struggle to access affordable
housing. This inequality is creating a significant need for low-income and social housing
solutions.

Migration Patterns: Both internal migration (from rural to urban areas) and international
migration (overseas Filipino workers returning to the Philippines) impact housing needs.
Returning migrants often seek housing in areas where they plan to settle or invest, influencing
local real estate markets.

Aging Population: Although still relatively young, the population is gradually aging. This trend
will increase demand for housing that accommodates the elderly, such as accessible homes
and retirement communities.

Natural Disasters: The Philippines is prone to natural disasters like typhoons and earthquakes.
This vulnerability impacts housing needs by necessitating resilient and disaster-resistant
housing designs, as well as reconstruction efforts in affected areas.

Economic Development: As the economy grows, there is increasing demand for various types of
housing, from luxury apartments to affordable rental units, driven by different income levels and
economic activities.

Addressing these trends requires coordinated efforts from policymakers, developers, and
community organizations to ensure that housing needs are met in a sustainable and equitable
manner.

4. How do different demographic groups (e.g., low-income families, senior citizens, OFWs)
experience housing challenges differently?

Demographic groups housing challenges

Low-Income Families

Affordability problems and poor living conditions are major housing obstacles for low-income
households in the Philippines. Frequently, these families face difficulties due to the exorbitant
expense of housing, which uses up a significant chunk of their earnings, leaving minimal funds
for other necessary costs. Consequently, a large number of people are compelled to reside in
informal settlements or slums where housing costs are lower, despite the notably substandard
living conditions. Basic amenities like clean water, proper sanitation, and sufficient space are
often absent in these informal settlements, resulting in overcrowded and unhygienic living
conditions. Poor quality housing and insufficient infrastructure make it harder for low-income
families, impacting their well-being and overall quality of life. Furthermore, they frequently reside
in housing areas that have restricted availability of essential services like education and
healthcare, reinforcing the ongoing poverty cycle. The challenging environment for low-income
families results from the combination of high expenses, substandard living conditions, and
limited services, impeding their ability to enhance their situation and attain greater stability.

Senior Citizens

Elderly individuals relying on pensions or retirement savings may struggle to handle increasing
housing expenses, especially if their income does not keep up with inflation. Houses might not
be modified to accommodate the mobility and health requirements of elderly individuals, like
ramps, handrails, or accessible bathrooms. These individuals who reside by themselves in
regions lacking robust community support or social services may experience social isolation.

Overseas Filipino Workers (OFWs)

Filipino workers abroad face various housing obstacles due to their employment overseas and
their obligations in their home country. While working abroad, OFWs frequently encounter
expensive rent and poor living conditions, especially in nations with high living costs. Finding
affordable and safe housing in unfamiliar places can be stressful, particularly for individuals in
low-paying jobs. Moreover, handling real estate in the Philippines while being employed
overseas introduces an extra level of difficulty. Overseas Filipino workers often choose to invest
in properties such as houses or real estate in their home country to offer stability for their loved
ones, yet encounter challenges in ensuring these assets are properly maintained and protected
while being far away. The difficulty is made worse by possible problems concerning property
management, upkeep, and the legal aspects of owning property from a distance. Moreover, the
financial burden of providing for families with remittances can affect their housing situation, as
they juggle the expenses of living overseas with the requirement to maintain and oversee real
estate in the Philippines. This twofold housing responsibility emphasizes the complex
challenges that OFWs encounter, emphasizing the importance of holistic support systems in
both foreign countries and the Philippines.

Urban Poor
The economic vulnerability of the urban poor in the Philippines results in serious housing
challenges, highlighting the dire conditions of informal settlements. These people usually live in
overcrowded regions with insufficient or nonexistent infrastructure. Informal settlements typically
experience overcrowding, inadequate sanitation, and restricted availability of clean water,
resulting in unhygienic and risky living situations (Baker, 2017). The ongoing risk of being
evicted worsens their lack of stability, since urban poor neighborhoods are often selected for
renovation initiatives or government enforcement actions, resulting in many individuals losing
their stable housing (Pagtalunan, 2021). Residents are not sufficiently protected from
displacement due to the absence of formal property rights, which also limits their capacity to
make home upgrades (Ribot, 2020). This unstable living situation hinders their quality of life and
restricts their ability to reach vital services and opportunities, continuing a cycle of poverty and
marginalization (World Bank, 2019).

Rural Communities
Rural areas in the Philippines encounter major housing obstacles due to their remote locations,
limited economic resources, and insufficient infrastructure. Numerous rural regions experience a
shortage of essential services like clean water, electricity, and adequate sanitation, leading to a
significant impact on housing quality (World Bank, 2018). Limited availability of affordable
construction materials and skilled labor frequently hinders the ability to build long-lasting and
secure homes. Furthermore, rural areas often experience natural disasters like typhoons and
floods that can destroy inadequately built homes and worsen the housing shortage (Oxfam,
2020). Economic limitations worsen these problems, as numerous rural households find it
difficult to pay for even the most fundamental upgrades to their living conditions (Philippine
Statistics Authority, 2019). Challenges arise from land tenure issues, such as informal or
insecure land rights that can impede investments in home improvement and lead to instability
(Luna, 2021). As a result, these factors together contribute to an ongoing cycle of substandard
housing and financial struggles in rural regions.

Students
Students in the Philippines frequently face major housing difficulties, especially those who are
studying outside of their hometowns. The issue is worsened by the high request for cost-
effective and high-quality student housing close to schools, resulting in a lack of appropriate
accommodations (Department of Education, 2021). Due to financial limitations, a large number
of students are compelled to live in overcrowded and low-quality rental accommodations,
impacting both their academic achievements and general health. Furthermore, the expense of
student housing frequently imposes a significant financial strain on families, particularly those
with lower incomes, posing challenges for students in finding stable and suitable living
arrangements (Aguirre, 2019). Problems like insufficient amenities, absence of privacy, and
subpar upkeep are frequently seen in student housing and rental properties, affecting students'
comfort and safety (Lim, 2020). The lack of inexpensive housing near universities and colleges
emphasizes the necessity for enhanced policies and investments in student housing to tackle
these persistent issues.

Persons with Disabilities (PWDs)

Individuals with disabilities in the Philippines encounter significant obstacles in finding suitable
housing due to insufficient accessibility and a lack of options that cater to their unique
requirements. Numerous current housing buildings do not have necessary changes, like ramps,
wider doorways, and accessible bathrooms, which can make it challenging for people with
disabilities to live on their own and securely (Human Rights Watch, 2019). The lack of cheap
and easily accessible housing choices worsens these problems since individuals with disabilities
frequently must decide between inadequate lodgings or dealing with financial stress to find
appropriate housing (National Council on Disability Affairs, 2020). Moreover, there is a
widespread failure to enforce building codes and standards that mandate accessibility features,
resulting in inadequate accommodation for Persons with Disabilities (PWDs) (Ocampo, 2021).
This lack of accessibility not only puts their physical safety at risk but also hinders their full
engagement in community and economic endeavors, emphasizing the necessity for more
comprehensive housing policies and improved enforcement of accessibility regulations
(Philippine Statistics Authority, 2022).

Indigenous Peoples (IP)

Indigenous Peoples (IPs) in the Philippines encounter major housing difficulties that stem from
land rights issues, insufficient infrastructure, and lack of respect for their culture. Numerous
Indigenous Peoples communities reside in marginalized areas with scarce access to essential
services like clean water, electricity, and proper sanitation (Alcayna, 2020). Securing formal land
tenure and property rights is a challenge for IPs, as they frequently experience encroachment
and displacement from development projects or resource extraction activities, intensifying their
difficulties (Dela Cruz, 2019). Moreover, housing solutions often do not take into account the
cultural practices and traditional lifestyles of Indigenous Peoples communities, resulting in living
conditions that are inadequate and inappropriate (National Commission on Indigenous Peoples,
2021). The combination of these elements leads to housing that fails to meet the requirements
or uphold the rights of Indigenous Peoples, underscoring the pressing call for policies that
incorporate their cultural beliefs and offer stable land ownership and infrastructure
enhancements (Tadiar, 2022).
 5. What role do government policies and subsidies play in housing affordability?

Government policies and subsidies in affordability of housing

Many countries have launched programs to address affordability directly. For instance, the
Philippines’ PAGIBIG Affordable Housing Program (AHP) offers subsidized loans and housing
developments like PAGIBIG houses and lots. These initiatives help low-income earners secure
decent shelter.

Similarly, the Housing and Development Board (HDB) offers heavily subsidized flats for
purchase in Singapore. These flats are often located in new towns with amenities, making them
an attractive option for many Singaporeans. This approach is echoed in other parts of Southeast
Asia, with countries like Thailand’s Baht for a Home program providing financial assistance for
low-income families to buy houses.
Civil Society and Community Groups

On the ground, community organizations empower residents, especially in the Philippines. They
educate people about their rights, particularly regarding housing loan options in the Philippines,
and advocate for fairer regulations. They also conduct research highlighting the impact of
skyrocketing house prices in the Philippines on ordinary citizens. This grassroots work ensures
the lived experiences of those struggling with affordability are heard.

The popular 30-percent housing price-to-income ratio is not a suitable measure of housing
affordability in the Philippines because it overestimates affordability among the poor and
underestimates the same among higher-income groups.

This was revealed by Philippine Institute for Development Studies (PIDS) Vice President Marife
Ballesteros, Supervising Research Specialist Tatum Ramos, and Research Specialist Jenica
Ancheta in their study “Measuring Housing Affordability in the Philippines” presented at a PIDS
public webinar recently.

6. How does the availability and quality of infrastructure (e.g., roads, sanitation, utilities)
affect housing conditions?

Availability and quality of infrastructure that affect housing conditions

Accessibility: Roads and transportation, Poor road systems can make it more difficult for locals
to access necessities like marketplaces, hospitals, and schools, which will lower their standard
of living. Good road networks increase the desirability of housing and improve connectivity.

Sanitation: Waste disposal and sewage issues, along with waste management contribute to
living conditions that pose health risks and lower housing quality standards overall. than
controlling the spread of diseases proper sanitation also plays a vital role, in fostering a
healthier living atmosphere.

Water supply: Reliable water access, Housing that lacks steady access to potable water suffers
from a lack of convenience and hygienic conditions. A well-built water infrastructure guarantees
clean drinking water and encourages improved home health and sanitation standards.

Electricity and energy: Utility provision, Regular power outages or lack of electricity hinder basic
functions, such as lighting, cooking, heating, and communication. In housing areas, a steady
supply of electricity improves accessibility to modern amenities, safety, and comfort.

Flood control and drainage: Flood-prone areas, Poor drainage systems cause flooding and
water buildup, which can harm and even destroy homes. Proper infrastructure prevents flooding
and ensures that homes are structurally sound and resilient.
 7. Are there any innovative housing solutions or models being explored or implemented in
the Philippines?

One of the innovative housing solutions that are being implemented in the Philippines is
Incremental housing. A study by Manalo (2022) shows that this model makes low-income
families able to build and also upgrade their house over the course of time, starting with basic
structures and later on adding the improvements as soon as resources become available to
them. This approach is more oriented towards poor urban communities, giving flexibility and
affordability while promoting community involvement in the process of construction.

A major advantage of incremental housing is the ability to adapt to financial capabilities of

families, giving them the option to expand their homes progressively instead of having to build
their house through large investments. This model also promotes the use of local materials that
reflect urban vernacular making it accessible and culturally relevant. Furthermore, Manalo
(2022) emphasized the resilience of incremental housing through natural disasters and
calamities. Since the Philippines is mostly affected by typhoons and earthquakes because of its
geographical location, incremental housing often incorporates disaster-resilient features, such
as elevated structures to mitigate the impacts of flooding and reinforced materials.
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