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Rental Housing for Urban Low-Income Households in the Philippines

Author

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  • Ballesteros, Marife M.

Abstract

The objective of this paper is to examine the rental housing market in the Philippines and provide possible policy options for a viable rental scheme for low income households. Rental housing is now seen as a vital component in accommodating large number of families in developing countries. In the Philippines, specifically Metro Manila, the increase in urban population through both migration and natural increase, has been absorbed to a large extent by the rental market. There is thus a need for the government to reexamine its policy on rental housing. In particular, it has to review problematic issues in the rental market such as: (1) affordability and rent control measures; (2) quality of rental housing stock; (3) legal and ejectment issues; and (4) management of public rental housing. The existing rent control law is unable to protect the low income households since most low income renters dwell in self-help rental accommodations, where informal, verbal contracts are not uncommon. Affordability and quality issues can only be addressed by policies that will encourage small scale landlords to provide more and better low cost rental accommodation. Instead of a rent control the paper suggests the following schemes: (1) building rental incentives into upgrading programs; (2) provide micro credit for small scale landlords; (3) create appropriate planning and rental regulations in informal settlements; and (4) direct government subsidies to public rental housing for the urban poor to be undertaken as a joint venture with the local government.

Suggested Citation

  • Ballesteros, Marife M., 2004. "Rental Housing for Urban Low-Income Households in the Philippines," Discussion Papers DP 2004-47, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2004-47
    as

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    File URL: https://www.pids.gov.ph/publication/discussion-papers/rental-housing-for-urban-low-income-households-in-the-philippines
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    References listed on IDEAS

    as
    1. Ballesteros, Marife M., 2001. "Benefits (and Losses) From Rent Control in the Philippines: An Empirical Study of Metro Manila," Discussion Papers DP 2001-23, Philippine Institute for Development Studies.
    2. Christopher J. Mayer & C. Tsuriel Somerville, 2003. "Government regulation and changes in the affordable housing stock," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 45-62.
    3. Glynis Daniels & Michael H. Schill, 2003. "State of New York City's housing and neighborhoods: an overview of recent trends," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 5-17.
    4. Ballesteros, Marife M., 2001. "The Dynamics of Housing Demand in the Philippines: Income and Lifecycle Effects," Discussion Papers DP 2001-15, Philippine Institute for Development Studies.
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    Cited by:

    1. Eric Heikkila & Michael Lin, 2014. "An integrated model of formal and informal housing sectors," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 121-140, January.

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    Keywords

    housing sector; rental tenure;

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