THE Philippines is currently facing a huge housing shortage of 6.5 million units. In Quezon City alone, the demand for affordable housing exceeds 250,000 families. Despite securing P250 billion in funding through the Department of Housing and Urban Development (DHSUD) to build public housing for the urban poor, the situation continues to deteriorate. Years of funding for public housing by the National Housing Authority, LGUs and other agencies have failed to reduce the backlog, which continues to grow.

When I joined the Bases Conversion and Development Authority (BCDA) in the late 1990s to develop Fort Bonifacio, now known as Bonifacio Global City, the housing deficit stood at 3 million units . A key part of our development program was the relocation of informal settlers, mainly military families who had temporarily built houses in the camp. BCDA has built thousands of apartments in the villages of Diego Silang and Centennial, as well as on-site townhouses along the C-5 road. These developments, located a few minutes from BGC, offered medium-sized subsidized apartments, with beneficiaries paying only construction costs because the land was free. Units ranged from P300,000 to P450,000 for 36 to 59 square meters; today, these same units are valued at 3 million pesos for a 59 m² unit.

Despite the proximity and affordability of these housing units, many informal settlers rejected the BCDA’s offer. Supported by retired military and police officers, they actively opposed resettlement efforts and lobbied politicians for support. As a result, they remain informal settlers, with hundreds of hectares of undeveloped prime land now transformed into blighted slums.

While the government has built thousands of subsidized housing units across the country, homelessness continues to rise. We cannot afford to continue strategies that have proven ineffective.

As a former slum dweller in Fort Bonifacio and a civil servant involved in housing and urban development, I bring a unique perspective that has led me to believe that the institutionalization of public rental housing is one of the most more viable in this crisis. Here are several compelling reasons:

1. Limited government land and resources. The free allocation of public land deprives future generations of the opportunity to access affordable housing. A sustainable approach must ensure that government resources are preserved for long-term public benefit.

2. The challenges of homeownership. Granting homeownership to poor families often results in the sale of properties to wealthier individuals. Informal settlers typically live on daily livelihoods, prioritizing immediate needs like food over long-term asset management. Costs such as depreciation, management fees, association dues and taxes are beyond their means. As these houses change hands, we see a consolidation of wealth, with the government losing valuable land while informal settlers remain marginalized.

3. Professional incentives for squatting. Social housing may inadvertently reward professional squatting. While living in the slums, I paid P1,000 per month for an 8 square meter shanty built on a creek owned by another informal settler. Despite the exorbitant rent, I endured deplorable conditions that deprived me of dignity. If public rental housing had been available, my rent could have provided better facilities and security. Furthermore, those involved in the issue of poor urban housing should be aware of the multi-million peso operations carried out by professional land grabbing and squatting syndicates.

4. Improved community management. Public rental housing allows for better enforcement of regulations and better maintenance of the community. A well-managed rental system promotes a sense of belonging and pride among residents, leading to better living conditions and community cohesion. Unfortunately, the protection of public spaces in these communities is often neglected, leading to slums with uncontrolled development.

5. Need for better governance and transparency. A public rental housing system creates a centralized government database of beneficiaries, preventing misuse of benefits by unscrupulous individuals and ensuring that assistance reaches those who most deserve and need it most . This data-driven approach allows the government to improve governance and provide essential services such as education and healthcare to residents of public rental housing.

Among successful models, Singapore’s public housing program, managed by the Housing Development Board, stands out. When Lee Kuan Yew became Prime Minister of Singapore, public housing was one of his top priorities. Today, about 77 percent of Singaporeans live in public housing, showing its effectiveness in addressing housing challenges. Eligibility for public housing is based on income, promoting inclusive and equitable mixed-income communities.

Housing policy in the Philippines must stop equating homeownership with the provision of dignified, safe and affordable housing. This approach will close the gap between homelessness and homeownership. Social rental housing allows poor urban families to manage their finances more efficiently, allowing them to direct their hard-earned money towards food, education and small businesses, thereby improving their ability to generate income. Once these families are better positioned, they may aspire to purchase their own home.

Human dignity

Perhaps the most profound impact of providing dignified, safe and affordable housing is restoring the self-esteem and dignity of the urban poor. The path to liberation from poverty is closely linked to dignity and the perception of free will. Research has shown that physical environments significantly affect mental well-being. One notable concept is the “broken windows theory”, successfully applied in New York to reduce crime. Design and functionality are important; even small, well-designed spaces can improve quality of life. For example, Tokyo residents thrive in compact, beautifully designed condos with accessible public parks and common spaces.

A renewed sense of dignity fosters hope. Hope sparks action, and action leads to progress. This cycle can transform a society in which citizens feel empowered to contribute rather than relying on government favoritism. Urban planners and designers must prioritize creating physical spaces that improve the quality of life for all.

My experience in the slums revealed that the poor often pay exorbitant sums for inhumane housing and inadequate infrastructure. The figures show that the amount paid by the poor could guarantee better housing. With 6.5 million units needed, the government and private sector can leverage public-private partnerships to quickly close the housing supply gap.

By learning from successful models and implementing public rental housing in the Philippines, we can make significant progress toward alleviating the housing crisis, ensuring that every Filipino family has access to safe and secure living conditions. worthy. Now is the time for transformative action.