THE MARCOS administration has “recalibrated” its housing target to 1.133 million housing units for the entire presidential term, as the government shifts strategy amid rising construction costs and slow uptake of earlier housing models.
Senior Undersecretary Henry Yap of the Department of Human Settlements and Urban Development said the original target of 6.5 million housing units was based on a broader computation that included not only actual housing backlog but also homes that may deteriorate over time due to disasters and aging.
“The 6.5 million actual target was a target that covers both housing need and housing backlog… one third of that is houses that are okay but could overtime be affected by typhoon or dilapidated,” Yap said during the Presidential Communications Office’s press briefing on Monday, January 12.
He explained that including such projections effectively overstated the actual housing requirement.
“So in reality the number that is needed is only about two thirds or about three plus, three point something million,” he said.
Following a review of housing delivery figures from previous administrations, DHSUD recalibrated its target to 1.133 million units, combining direct government-built housing and indirect housing support through financing programs.
Yap noted that the current accomplishment already amounts to about half of the total housing output of previous administrations at similar points in their terms.
Shift away from condo-heavy housing
Yap acknowledged that the government’s initial focus on vertical housing or condominium-type projects limited participation, particularly outside Metro Manila.
“Kung matatandaan ninyo nag-concentrate po kami doon sa vertical housing… but we realized that outside of Metro Manila and the highly urbanized centers ang gusto pa rin ng karamihan is horizontal — house and lot or lot only,” he said.
High construction costs for vertical housing, combined with inflation-driven increases in building materials, further slowed housing rollout.
To address this, DHSUD issued a price ceiling adjustment in December, allowing developers to offer more affordable housing options.
A key part of the recalibrated strategy is the reduction of housing loan interest rates through Pag-IBIG Fund, which is part of the government’s shelter cluster.
Yap said interest rates for socialized and economic housing loans were cut from as high as 6.5% to 3%, with further reductions possible through government subsidies.
The lower rates are expected to reduce monthly amortization costs and encourage more families to qualify for housing loans. (GMA Integrated News)
