MAINSTREAMING HOUSING

SOLUTIONS IN THE NATION’S

ECONOMIC AND DEVELOPMENT

GOALS

ROSEMARIE G. EDILLON, PhD

Deputy-Director General

National Economic and Development Authority

25th Chamber of Real Estate and Builders’ Associations Annual National Convention

Baguio City

October 12-15, 2016

Outline

• The housing situation

• Roadmap for Housing Sector Development

• Guiding Framework

• AmBisyon Natin 2040 (EO 5 s2016)

• National Spatial Strategy

• The 2030 Agenda for Sustainable Development

• Strategic Framework for the Housing Sector

(broad strokes)

• Proposed Strategic Framework for the PDP 2017-

2022

• The housing need is 5.56

million by end of 2016

• The growth of the slums is

3.4 % annually

• Access to affordable

housing remains a major

development challenge

• In the past 6 years, only an

average of 1.135 % of the

national budget is allotted

for housing sector

Housing Situation

Population (2010) and Projected Population

Source: PSA

Year Projected Population

2020 111,784,600

2025 120,224,500

2030 128,110,000

2035 135,301,100

2040 141,669,900

Housing Situation

Population Growth

Issues

Urban/ Settlement

Expansion & Food Security

Land Use Conflicts

Urban Efficiency &

Capacity

Disaster Risk & Vulnerability

Housing Situation

Total Housing

Needs

CY 2016-2022

Total Housing Needs 1,271,266 6,796,910

A. Accumulated Needs 1,271,266 1,434,503

1. HH in Unacceptable Housing 786,523 885,017

a. Rent-free without consent of owner 526,501 592,803

b. Homeless 5,298 5,975

c. Dilapidated/condemned 90,296 101,129

d. Marginal Housing 164,428 185,110

2. Doubled-up HH in in Acceptable HU 484,743 549,486

B. Future/Recurrent Needs 5,362,407

1. Allowance for Inventory losses 2,660,921

2. Increase in HHs (likely to afford to own 2,701,486

acceptable HU)

Initial Needs (As of Jan

1, 2016) BACKLOGComponents of Housing Needs

What is the cost of the housing backlog?

• At an average cost of Php 500,000 per household

or family which includes a socialized housing unit,

social preparation and post-resettlement costs, the

accumulated need of 1.4 million households would

require a budgetary allocation of Php 700 billion for

a period of six years or Php 117 billion annually.

• For the whole lot of 5.56 million households,

around Php 2.8 trillion or Php 467 billion annually

for six years.

The Life We Want

9

What Filipinos want to be

What Filipinos want to have

What Filipinos want to do

Matatag, maginhawa at panatag na buhay para sa lahat

• Motivation for aspirations is family

• A comfortable life with the family,

free of hardship and worry

10

What is a “matatag, maginhawa at panatag na buhay” ?

11

All children are college-educated

Own at least one car

Able to take occasional trips around the country

Decent work

Own a medium-sized home

Have enough money for day-

to-day needs

Business owner

Relax with family and friends

The Life We Want

12

Matatag • Living together with family • Time with family and friends

(work/life balance)

Panatag • Resources adequate for day-to-

day needs and unexpected expenses

• Security of place • Passive income during

retirement

Maginhawa • Freedom from hunger • and poverty • Guaranteed mobility • Secure home ownership • Travel and vacation

opportunities

Most respondents choose to live in houses with large lots, yet majority prefer to live in cities

13

73% selected the small

house with a big lot

14% chose the big house

with a small lot

Preferred community to live in

29% prefer to live in a small city in the province

30% prefer to live in a big city

like Manila

30% prefer to live in the town center in the province

What is a “matatag, maginahwa at panatag na buhay”?

14

10,000 All children are

college-educated

5,000 Own one car

6,000 Able to take occasional

trips around the country

P 120,000 Gross Monthly Income

30,000 Own a medium-sized

home

40,000 Have enough money

for day-to-day needs

Income Tax

25,000

Relax with family

and friends

4,000

Matatag, Maginhawa at Panatag na Buhay

15

10,000 All children are

college-educated

5,000 Own one car

6,000 Able to take occasional

trips around the country

P 120,000 Gross Monthly Income

30,000 Own a medium-sized

home

40,000 Have enough money

for day-to-day needs

Income Tax

25,000

Relax with family

and friends

4,000

3,000

30,000

12,000

1,000

3,000

16,000 P 70,000

Comprehensive and Enabling Economic and Social Policy

5,000

Housing and Urban

Development

Construction

Housing design

Urban planning

Utilities (EGW)

16

Priority Sectors

Connectivity Roads and bridges Port Airport Transport service Communication

Manufacturing • Food processing • Housing related • Construction related • Transport mfg • Other manufacturing

Priority Sectors

Education Services Formal education Re-tooling services

Tourism-related services

Financial services Consumer financing Enterprise financing Insurance • Savings mobilization

Health services

Agricultural development

Countryside development

Vision of Filipinos for Self

“In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily

needs and unexpected expenses, that we can plan and prepare for our own and our children’s future. Our family lives together in a place of our own, and we have the freedom to go where we

desire, protected and enabled by a clean, efficient, and fair government."

18

19

2016-2022

2023-2028

2029-2034

2035-2040

Need for a

Housing

Sector

Roadmap

Urban/ Settlement Expansion and Food Security

Land Use Conflicts

Disaster Risk

and Vulnerability

Urban Efficiency

and Capacity

National Spatial Strategies

Agglomeration

Vulnerability Reduction

Connectivity

Agglomeration Connectivity Vulnerability Reduction

Plan for and guide increase in the densities of major centers

increase and improve linkages among settlements and key production (including tourism) areas

• Optimize benefits from urbanization

• Provide a wider variety & higher levels of services & amenities

• Reduce encroachment into agricultural land & other environmentally-sensitive or protected areas

Increase access to and improve efficiency of markets.

Direct growth in

areas with greatest economic potentials through efficient transportation networks

Protect environmentally-constrained or hazard-prone areas

Separate/control the

extent of interaction between settlements and hazard-prone areas

Increase redundancy of transportation routes

NSS Strategies Goals and Objectives

From 2016-2024, there will be 3 Metropolitan Centers (M Mla, M Cebu, M Davao)

By 2025 it is projected that there

will be 4 Metropolitan Centers, with the addition of Metro CDO

38 regional centers 117 subregional centers 365 provincial centers …The rest are local centers The provincial and local centers shall

be provided in the ASDFs.

Proposed Network of Settlements

The 2030 Agenda

The 2030 Agenda

Sustainable Development Goals and Targets

• By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums

• By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons

• By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries

• Strengthen efforts to protect and safeguard the world’s cultural and natural heritage

• By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations

• By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management

• By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities

• Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning

• By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels

• Support least developed countries, including through financial and technical assistance, in building sustainable and resilient buildings utilizing local materials

Need for a Housing Sector Roadmap

Objective: - Increase access to decent and affordable housing, and

- create vibrant, inclusive, connected and sustainable

communities

1. Masterplan on spatial development

2. Strengthen property rights regime

3. Develop (improve) capacities on urban development, housing

development and other allied industries and services

4. Well-design housing finance program

PDP 2017-2022 PDP 2023-2028

PDP 2029-2034 PDP 2035-2040

• Requires strong ownership and buy-in by

stakeholders and the country’s leaders over

the next 25 years

• Each plan must build on previous plan, not

change it unnecessarily

• Needs and preferences may change over time

• Unexpected developments may arise (e.g.

climate, science & technology)

From vision to action

Vision

29

From vision to action

By 2040, Philippines will be:

1. A prosperous, predominantly

middle-class society where no

one is poor;

2. A healthy and resilient society;

3. A smart and innovative society,

and

4. A high trust society. 2017-2022

2023-2028

2029-2034

2035-2040

Most respondents choose to live in houses with large lots, yet majority prefer to live in cities

30

73% selected the small

house with a big lot

14% chose the big house

with a small lot

Preferred community to live in

29% prefer to live in a small city in the province

30% prefer to live in a big city

like Manila

30% prefer to live in the town center in the province

2040

2022 FOUNDATION FOR INCLUSIVE GROWTH, A HIGH-TRUST SOCIETY AND

A GLOBALLY COMPETITIVE KNOWLEDGE ECONOMY

MATATAG, MAGINHAWA AT PANATAG NA BUHAY

REDUCING INEQUALITY

(pagbabago)

Accelerate

human capital

development

Expand

economic

opportunities

Reduce

vulnerability of

the poor

Increase access

to economic

opportunities

Accelerated and strategic development

of infrastructure Maintain ecological integrity, clean

and healthy environment

Strategic trade and fiscal policy and macroeconomic stability

INCREASING POTENTIAL GROWTH

(kaunlaran)

Maximize demographic

dividend

Promote technology

adoption

Promote competition

Encourage innovation

ENHANCING THE SOCIAL FABRIC

(malasakit)

Build trust in

public

institutions

Promote and value

cultural diversity

Ensure security

Thank you!