INSIGHTS: Affordable Housing Demand and Supply in the Philippines (2024)

Acquiring an affordable home in the Philippines seems more feasible as the government moves to resolve the housing backlog through the Pambansang Pabahay Para sa Pilipino (4PH) Housing Program . By 2028, the country is expected to have six million housing units.

However, in the years leading up to 2028, the need for affordable housing will likely continue as costs of living rise and consumers become more price-conscious. Understanding the affordable housing supply and demand dynamics can help developers and brokerages identify underserved markets and discover new ways to provide more home options.?

Lamudi Philippines shares the latest trends surrounding housing affordability in the country:?

• The National Capital Region (NCR) had the highest supply of housing units costing Php 6M and below. Outside the capital region, CALABARZON, Central Luzon, and Central Visayas had the highest supply of affordable housing on Lamudi as of January 2024.?
• Affordable housing demand was largely concentrated in Luzon in 4Q 2023. In NCR, the majority of inquiries were for condominiums. Meanwhile, in CALABARZON and Central Luzon, 90% of property seekers displayed interest in house and lot units.

Where Do Property Seekers Look for Affordable Homes?

• Overseas property seekers had varied location preferences when looking for affordable homes for sale. In 4Q 2023, overseas seekers from the Middle East were equally interested in locations within and outside NCR; Quezon City was their most preferred city.?
• Seekers in Saudi Arabia and Dubai specifically were looking into affordable homes in Davao, Cebu City, and Cagayan de Oro. Lower real estate prices in these cities also make them great alternatives to Metro Manila.

Check out our affordable housing and supply infographic to dive deeper into these trends.?