Jan 03, 2022 to Dec 29, 2022
Funding Agency:
Philippine Institute for Development Studies
Focus Area(s):
Regional, Urban, and Rural Development

Housing is one of the most important basic needs. It takes up a portion of household expenditure in most cases. Furthermore, households are expected to prioritize housing among their expenses because of its potential implications on health, safety, and security. The importance attributed to housing translates to a need for the Philippine government to constantly check housing affordability especially when there are housing need challenges. In the Philippines, the 30% income standard is a widely used and accepted measure of the extent of housing affordability. In fact, Section 2 of Batas Pambansa Blg. 220 (BP 220) provides that socialized and economic housing should be within low-income and average earners’ affordability level, which is at 30% of gross family income as determined by the National Economic and Development Authority (NEDA). The validity of the 30% income standard, however, has not been fully established in the Philippines. There has also been no comparison against other housing affordability measures. The lack of supporting research weakens the rationale for using the 30% income standard and the argument that housing has been affordable over time. The study will enable further assessments on housing affordability situations in the Philippines. Assessments of housing affordability conditions through the employment of suitable measures will inform the government on whether policy changes are required to improve support to low and middle-income households.

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