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Philippine government has been curbing housing shortage since 2012 after the demand  has reached an astonishing 1.3 Million, alarms has been detected before by housing  organizations and real estate experts subsequent supply starts to decline from 220,756 to  200,124 units constructed based in 2009 record of HLURB Licensed to sell (LTS) database,  figures that hasn’t given much importance at the time for banks implements tights  borrowing policies and real estate developers just want to loosen up the real estate market  from over heating and most companies recuperates from the effect of world wide economic  crisis that brought down investments in chaos, The aftermath of the collapse of sub-prime  mortgage crisis known as the “housing bubble” in the US in 2008 affects economies world  wide, the slump that brought by the Financial Crisis alters the perceptions on the stability  of real estate market as a secured investment. Meanwhile in the Philippines, the supply of  affordable homes in the country hasn’t keeping up with the demand since then, creating  a  vacuum for real estate market to breath and that trigger a renewed demand that benefit  the Philippines Real Estate going to its 9th successive year growth according to Global  Property Guide.  Recent industry report; “Impact of Housing Activities on the Philippine  Economy" jointly completed by the Center for  Research and Communication of the University of  Asia and the Pacific (CRC-UAP) and Subdivision  and Housing Developers Association (SHDA), the  backlog have reached at 6.7 million in 2015, plus  with the new housing need for the growing  Philippine population rate of 1.84% per annum  (2000-2015 PH growth rate) and with a  household size of 4.4 (Philippine Statistics  Authority), approximately the additional demand  for the period 2016 to 2030 will reached 7.27  Million. HLURB record on housing production rate is unstable with the drop of 25.57% from  274,545 in 2017 to 204,344 units in 2018. With the production rate between; 200,000 to  250,000 per year will only results to an accumulated production of 3.15 million in 15 years  and the Philippine Statistics Authority only shows 20 thousand to 30 thousand every  quarter year of building permit applications for residential construction assuming 100%  occupancy rate and for 15 years getting the average would add up to only 1.5 Million.  Without much more effort from the Philippine government and intervention from private  sectors and institutions. The country would still needs a total of 9.32 million houses to  break-even, meeting 10 years earlier Philippine goal “Ambition Natin 2040” - decent house  for every Filipino household”  Basically, demand in housing is based on the household’s security of tenure and mostly on  how a growing family adjusts into their housing consumption given that places them in  equilibrium, if the equilibrium has not meet; modification of existing units, relocating to a  bigger or adding another unit become an option to meet satisfaction and comfort for the  certain household,. As the trends continue the demand on housing rises but requires  enthusiasm, there desire to own and the actions from these consumers. Other factors that  affect the demand of housing are the price of lot & house, its affordability, the availability  of flexible financing options and household income, without these factors the lack of  housing supply won’t fuel the demand among consumers. External forces such as war and  natural calamities, also the expiration of the life-span of a housing unit contributes  additional demand. Existing government bureaucratic efforts; its lending institutions,  financial intermediaries and guarantee entities were effective but inefficient, for it suffers  liquidity delays and rigid unnecessary documentation requirements that supposed to be an  inter-agency transaction that minimizes the cost and reduce processing time. Government  existing programs and the creation of (Housing and Urban Development Coordinating  Council (HUDCC)  to administer the key housing agencies; National Housing Authority  (NHA),  National Home Mortgage and Finance Corporation (NHMFC), Home Development  Mutual Fund (HDMF), Housing and Land Use Regulatory Board (HLURB), and Home  Guaranty Corporation (HGC) helps curb housing problems, situations does not confined  only on providing affordable financing and household income transfer thru government  subsidiaries like Pag-Ibig Fund or, giving access to affordable housing and security of  tenure. Government should address the housing problem with the broader context. And  give emphasize on the demand side and  especially the supply side of housing problems to  create the better framework.   The 2015 research on The Philippines Housing  reveals a huge gap in housing supply vs.  demand despite government efforts, private  partner’s enthusiasm, and foreign assistance on  the housing programs, the seven digit housing  disparity is still almost unchanged. Analyzing the  demand side of housing quandary, on the socio  economic aspects; most household has a limited  source of income for their housing consumption. As of 2019 the ceiling price of a decent  low cost house with 21 to 24 sqm is P480, 000, for a worker which has the daily wage of  P350 in the suburb provinces. The housing price is 380x (380%) of its yearly wages,  likewise for the socialized house costing P700, 000 is 555x or 555%. Considering the  ceiling price of an economic housing at 1.7 million, do the math will give 879x, or 87.9  percent of the annual income of a regular employee earning an income of P537/day or  161,100 per year, (a salary almost equal or a little greater than Ph GDP per Capita/ year),  which financial analyst would view as unaffordable considering the average expenditures of  a Filipino household is P267, 000 per year based on 2015 surveys. Comparing to Hong  Kong and Singapore average house price to GDP per Capita of 65.59x and 25.96x  respectively., (source: Global Property Guide) were the real estate markets were two of  the most expensive in the world.  The Philippine real estate is becoming a buying-spree for Filipinos working in other  countries with the higher GDP/capita and savings, for foreigners with dual citizenship, for  expats with SRRV Visa, for foreign workers with  diplomatic errand like the Chinese and  rich  Filipinos with dispensable income, owning  multiple properties and taking advantage of the  undeveloped Philippine real estate rental  market. Transforming prime residential  condominiums of Metro Manila into empty  boxes. “The market has been characterized by  record completions in supply, rising vacancy  [rates] and declining yields, while capital values  for these properties have “plateaued” or  increased at a slower rate” Colliers International points out from its research in 2017.  Only a low-cost model house unit is the only most affordable shelter to own by an average  Filipino family without affecting the budget for the household basic needs and their  standard of living.   The house price to income ratio is expected to rise given the cost of  construction materials does not deviates much with the nations nominal inflation  fluctuations between 2% and 4%  a year (2016  to 2019) or by linear estimation using the  Philippine housing Index projection will result to   more or less 4% per annum.  A regular employee benefits and wages are flat  for the country’s wages is hardly regulated and  couldn’t keep up for their housing needs that by  working overseas is the best option to belong to  a class of society that could afford such housing  price. The class of buyer that belongs to the  higher middle class which at present represents the highest percentage of buyers of the  sales generated from real estate sales. The housing conditions in the country come at a  price that a few middle income household can afford. Financing options presented by real  estate developers, private financing institution and Pag-Ibig aren’t much attractive since  the current levels of disposable income won’t allow the lower middle-income class to  allocate some amount for housing for it will consequently lower their current standard of  living. Housing ownership hysteria is not only a subject matter for the under privilege,  informal settler families and low income families but also for the middle class families  because the Philippine average housing price  increase at 15% per year, condominium and  high end housing prices in urban cities  especially in Metro Manila increases 36% per  year one of the highest in Asia based on the  study of Habitat for Humanity and World  Bank. Thanks to BSP for regulating country’s  financing institutions by maintaining the  economy buoyant, lowering interest rates;  maintaining affordability level of real estate  for middle earner consumers.   The speculative projected growth of real estate prices by economic managers cause by  housing demand continues to escalate even though it doest cater its desired market. This  makes Philippine real estate especially high-end housing in a bubble, but sustainable. Its  ability to remain buoyant benefits the real estate builders, land owners and developers.  Thus, housing is more a business for financial gain and less philanthropy works for  government’s private partners. That, for a Filipino family’s dream of owning a house is a  race for its affordability. Middle income families or the working class finds it difficult to own  a dwelling unit within the comfort distance from their working places because of the  shortage on the availability of land for residential, housing development in highly urban  areas and high cost of land. The case reflects the demand side of housing dilemma. The  soaring rate increase in land prices is a major factor in house price appreciation.  (Strassman and Blunt 1993; Ballesteros  2000; Grimes 1976). International rule  housing for a low income family of 100 sqm  lots should cost a little more or less as GNI  per capita of a country. In the case of the  lands outside Metro Manila like in Bacolod  City where the raw land along outstretch of  the urban centers is more or less the prices  reaches 1000/sqm. Doing the math results  to 0.20 times of the country GNI per capita  (Ph GNI/capita $10,000, 2017), somewhat  feasible but when subdivided and developed  it further raised 5.3 to 6.7 its original value. Say at present for example (Bacolod City) a  suburb lot in a developed subdivision with the area of 100 sqm price now at 5000/sqm.  Price/ (GNI/capita) = 1.0 x GNI, which prove accurate. Acquisition of agricultural land is  somewhat a longer process because of the conflicting procedures among government  agencies and the government’s lacks of centralized regional processing centers, the prices  rises further to 2.5 to 3 times once converted and zoned for urban use. (Studied by World  Bank and UNCHS). However analysis centers on the average class or middle class as a  whole, for the parameters used are base on middle values or the average values specified  in the economic indicators; GDP, GNI. The classes below middle will suffer most by the  escalating value of land and houses, since analysis shows the middle class is already within  the threshold and existing housing projects does not cater the prevailing market that is the  Middle income class. The risk on housing program not to realize exist till the Philippine  ambition to become middle class society is realize thru wealth accumulation and  distribution by enactment of policies  programs and constant monitor of the country’s  progress in achieving development goals.  Problems of the housing shortage is the  availability of land for housing cause by  lack of allocation for residential and  urban development, the system of  permitting procedure and conflicting of  interest among government agencies.   Think Tank Center for Housing and  Independent Research Synergies in a  research study housing developers  currently have to go through 27 offices  to secure 78 permits and 146  signatures, for a total of 373  documents. Agencies such as the local government unit, the Department of Agriculture,  Department of Agrarian Reform, Department of Environment and Natural Resources,  Bureau of Internal Revenue, and Housing and Land Use Regulatory Board (HLURB), among  others. The creation of Department of Human Settlement and Urban Development  (DHSUD) involves a paradigm shift in the approach to public housing as a solution to the  housing backlog. It would introduce housing in government lands suitable for development  and construction of medium-and high-rise buildings using centrally located government  lands, so beneficiaries in the inner city would be better served. Singapore is the best model  for this, and the government be certain on its mission; exert effort and allocate the bigger  pie for housing program from the 0.07 percent of 2019 National Budget.  The Government’s programs on Housing was still in the transition for the implementation  of its new policies, rules and regulations from the enactment of Republic Act 11201. The  outcome is yet to be determine in  a few years. 

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