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  • Khomfie Manalo

Addressing housing gap to boost economy



The Philippines is no stranger to economic challenges, but one crisis has been looming large for decades: the housing shortage.


A housing shortage impacts the economy in several ways. A housing shortage can lead to higher prices for housing and other goods and services. A scarcity of available housing makes it difficult for people to find and afford a place to live, leading to lower economic output. More importantly, a housing shortage can reduce the number of people who can work due to the need for more available housing.


"Even the economic effect will be terrific if we can solve the housing shortage. It will have a positive impact on the economy. And that's why it's necessary," President Ferdinand R. Marcos Jr. said in his meeting with officials of the Department of Human Settlements and Urban Development (DHSUD), National Economic and Development Authority (NEDA), and other concerned agencies at the Malacañan Palace.


In the meeting, the President said he expects the government's ambitious housing programs and projects to impact the national economy positively. He added that the national housing thrust must be sustained to address the country's shelter gap.


The DHSUD reported the latest government housing program updates while the NEDA assessed the subject matter, including issues and recommendations.


DHSUD made several requests regarding the Pambansang Pabahay Para sa Pilipino (4PH) Program, such as the issuance of a funding guarantee. The guarantee aims to increase the confidence of government financial institutions in supporting the program and attract the participation of private banks and institutions.


It also wants to certify the 4PH Bill as urgent and priority legislation included in the President's upcoming State of the Nation Address (Sona) next month and ensure budget allocation for support facilities like basketball courts and parks.


The President wants agencies to develop the numbers to assess the risks before requesting a sovereign guarantee to implement housing projects.


"Let's generate those numbers and see what real-world cost is going to be --- what the market condition is, how easy or how hard it is going to be to turn --- for our guarantee to turn these things around. For the interest subsidy," he said.


“Sige as soon as you can para ma-desisyunan na natin ‘to. But we're going to --- everybody has to work together on this so that you can agree on the numbers. So, we have working numbers that we have confidence in. Hindi' yung arbitrary that we grab the number out of the air. It has to be based on the historical experience in the housing industry," he further stated.

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