The Dynamics of Housing Demand in the Philippines: Income and Lifecycle Effects
This paper examines the housing consumption pattern of households in the Philippines given their socioeconomic characteristics and the existing conditions in the land and housing market. Two basic issues are examined: one, how is housing adjustment and expenditure associated with income and demographic changes; and two, do housing consumption in the country suggest the presence of significant housing market imperfections or capital market imperfections. The results point to the lack of housing alternatives specifically for the low-income households in the formal housing market. Housing adjustments and the path toward acceptable housing are thus constrained. Estimates of income elasticity show that for most households, an increase in income will not be spent on housing but to meet other basic household needs. This being the case, there has to be a significant increase in income to bring about a significant change in housing conditions. In the long run, economic development may bring about the needed boost in income, however, in the short-run, government has look into alternative forms of low-cost housing. One option is developing the low-cost rental market. Another option is finding innovative financing schemes that would allow low monthly amortization. Lastly, government has to institute ways to effectively reduce the high cost of housing in the country.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: NEDA sa Makati Building, 106 Amorsolo St., Legaspi Village, Makati City,|
Web page: http://www.pids.gov.ph/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Friedman, Joseph & Jimenez, Emmanuel & Mayo, Stephen K., 1988. "The demand for tenure security in developing countries," Journal of Development Economics, Elsevier, vol. 29(2), pages 185-198, September.
- Hanushek, Eric A & Quigley, John M, 1980. "What Is the Price Elasticity of Housing Demand?," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 449-54, August.
- Ballesteros, Marife M., 2000. "Land Use Planning in Metro Manila and the Urban Fringe: Implications on the Land and Real Estate Market," Discussion Papers DP 2000-20, Philippine Institute for Development Studies.
- Richard F. Muth, 1971. "The Derived Demand for Urban Residential Land," Urban Studies, Urban Studies Journal Limited, vol. 8(3), pages 243-254, October.
- Orbeta, Aniceto Jr. C. & Llanto, Gilberto M. & Sanchez-Robielos, Maria Teresa & Tang, Marie Christine, 1998. "A Study of Housing Subsidies in the Philippines," Discussion Papers DP 1998-42, Philippine Institute for Development Studies.
- Mahlon R. Straszheim, 1975. "An Econometric Analysis of the Urban Housing Market," NBER Books, National Bureau of Economic Research, Inc, number stra75-1, June.
- Malpezzi, Stephen & Mayo, Stephen K, 1987. "The Demand for Housing in Developing Countries: Empirical Estimates from Household Data," Economic Development and Cultural Change, University of Chicago Press, vol. 35(4), pages 687-721, July.
When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2001-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.