Demographic shifts in the Philippines are reshaping the country’s housing landscape, calling for new supply strategies that adapt to an aging population and changing family dynamics, a Philippine Institute for Development Studies (PIDS) study said.
In a statement Thursday, PIDS said the study titled “Demographic Trends and Housing Patterns in the Philippines” called for a comprehensive, forward-thinking approach to address the challenges including the development of affordable housing projects, age-friendly designs to support the elderly and investments in sustainable urban infrastructure to accommodate growing urban populations.
“Age is an important predictor of housing demand, closely correlated with factors such as education, income, tenure status, fertility and even work status,” said authors PIDS Vice President Marife M. Ballesteros, Research Specialist Jenica A. Ancheta and Supervising Research Specialist Tatum P. Ramos.
The study highlighted the change in the age structure of the population from a broad-based pyramid in the 1970s and 1980s to a more rounded pyramid at present.
The number of individuals under age five is roughly equal to those in the 15 to 20 age group, while the adult-to-child ratio continues to grow. The authors attribute this shift to declining fertility rates, longer life expectancy and evolving societal norms.
The decrease in fertility rate from six children per woman in 1970 to only 1.9 in 2020 has caused a decline in household size, the report said. The average household size of 5.9 members in 1970 declined to 4.1 by 2020. However, nearly 37 percent of Filipinos belong to larger households with six or more members, suggesting that many are “merging households,” according to the study. The number of households is also growing slower as the population ages.
From 2010 to 2020, total households increased by 31 percent, but family-type households grew at a slower rate of just 26 percent. PIDS said this means fewer new families are being formed, with delayed marriage and young adults staying longer at home contributing to the shift.
The age structure of the household heads is also changing. Individuals under 25 have the lowest rates of becoming household heads, while households headed by those aged 35 to 64 have increased.
“From a housing perspective, these households are more likely to own their homes rather than rent, and have a lower demand for large housing,” the authors said.
Single-person households have also seen a significant rise, more than tripling from 2.9 percent in 1990 to 9.1 percent in 2020.
This signifies a move towards greater individual autonomy but also underlines the need for affordable, smaller housing options, PIDS said.
Urbanization is another critical factor in reshaping housing demand, according to the study. Metro Manila has witnessed a surge in its population aged 19 to 34, driven by job opportunities and educational prospects.
Meanwhile, rural areas are seeing an increase in elderly residents, a phenomenon linked to reverse migration after retirement.
The authors called on policymakers to act decisively to build a housing sector that is resilient, equitable and responsive to the country’s changing demographics.
