Over the last few years, inflation has been a consistently discussed topic worldwide. Not surprisingly, the world’s poor are facing the harshest effects of inflated prices and a struggling global economy. Specifically, the cost of housing has become a critical issue facing those trying to escape poverty. 

Background

In Asia and the Pacific, a severe crisis faces financially vulnerable families. Housing costs are continually rising, and as a result, more and more people cannot escape poverty or are falling back into it. The Asian Development Bank projects that around 80 million people live in poverty in the region as a direct result of inflation caused by the COVID-19 pandemic. This staggering number is alarming, and nations throughout Asia and the Pacific are impacted differently. 

Housing Storage

Housing costs in the Philippines are particularly concerning because of the existing issues within the nation. As mentioned above, inflation caused by the pandemic has been a driving factor in the housing crisis in the region. However, in the Philippines, the issue stems from before 2020. Real estate developers and contractors in the country are not building affordable homes. This policy has caused a massive shortage of available homes for struggling families. The homebuilders do not see developing affordable housing as a lucrative business opportunity. As a result, many families do not have the money to spend on the homes being built. This policy represents one negative aspect of the housing crisis in the nation. 

The other problem facing the Philippines is the poor implementation of government programs to provide aid for people and families struggling to find affordable housing. The Philippine government has a robust plan to subsidize the Filipino people for housing costs. However, only about a third of those who can’t afford housing receive the funds. Benchmarks to qualify for the housing subsidy need to be adjusted so more people can receive aid to provide stable housing for their children. If the government can improve this process, the housing costs in the Philippines will drive fewer people into poverty in the nation. 

The effects of inflation, poorly implemented government programs and housing shortages create extremely high housing costs in the Philippines. However, some work being done makes a significant impact. Habitat for Humanity has done an incredible job addressing Filipino people’s housing crisis for 25 years. Through working with other nonprofits and the local government, they have been able to help over 100,000 families gain access to housing. According to its website, Habitat for Humanity strives to develop strong communities to create a support system and move people out of poverty. 

Final Thoughts

Housing costs in the Philippines are still a serious issue, and this issue will not be solved overnight. This part of the world is struggling in numerous ways. Still, as the fight to create affordable housing continues, families will be able to work their way out of poverty and significantly improve their standard of living. 

– Dylan Lyons
Photo: Unsplash