Gov’t ‘recalibrates’ housing target to 1.13 million units

The Marcos administration has "recalibrated" its housing target to 1.133 million housing units for the entire presidential term, as the government shifts strategy amid rising construction costs and slow uptake of earlier housing models.

Senior Undersecretary Henry Yap of the Department of Human Settlements and Urban Development said the original target of 6.5 million housing units was based on a broader computation that included not only actual housing backlog but also homes that may deteriorate over time due to disasters and aging.

“The 6.5 million actual target was a target that covers both housing need and housing backlog… one third of that is houses that are okay but could overtime be affected by typhoon or dilapidated,” Yap said during the Presidential Communications Office's press briefing on Monday. 

He explained that including such projections effectively overstated the actual housing requirement.

“So in reality the number that is needed is only about two thirds or about three plus, three point something million,” he said.

Following a review of housing delivery figures from previous administrations, DHSUD recalibrated its target to 1.133 million units, combining direct government-built housing and indirect housing support through financing programs.

“So ang target po namin, ang recalibrated target namin is 1.133 million for the whole term of which we are now at about 400,000 plus already,” Yap said.

(Our recalibrated target is 1.133 million units for the entire term, and we have already delivered more than 400,000 units.)

Yap noted that the current accomplishment already amounts to about half of the total housing output of previous administrations at similar points in their terms.

Shift away from condo-heavy housing

Yap acknowledged that the government’s initial focus on vertical housing or condominium-type projects limited participation, particularly outside Metro Manila.

“Kung matatandaan ninyo nag-concentrate po kami doon sa vertical housing… but we realized that outside of Metro Manila and the highly urbanized centers ang gusto pa rin ng karamihan is horizontal— house and lot or lot only,” he said.

(We initially focused on vertical housing, but we realized that outside Metro Manila, people prefer house-and-lot or lot-only options.)

High construction costs for vertical housing, combined with inflation-driven increases in building materials, further slowed housing rollout.

To address this, DHSUD issued a price ceiling adjustment in December, allowing developers to offer more affordable housing options.

“You can produce a house and lot at not more than 950,000 compared to 1.8 million before,” Yap said.

Pag-IBIG interest rates cut

A key part of the recalibrated strategy is the reduction of housing loan interest rates through Pag-IBIG Fund, which is part of the government’s shelter cluster.

Yap said interest rates for socialized and economic housing loans were cut from as high as 6.5% to 3%, with further reductions possible through government subsidies.

“From a high of 6.5%, binababa po natin to three percent… and with the subsidy hopefully magiging one percent,” he said.

(From a high of 6.5%, we reduced interest rates to three percent, and with subsidies it could go down to one percent.)

The lower rates are expected to reduce monthly amortization costs and encourage more families to qualify for housing loans.

Expanded 4PH options, rental housing introduced

DHSUD also expanded the Pambansang Pabahay Para sa Filipino (4PH) Program, shifting from a production-focused approach to a beneficiary-driven model.

“Instead na maging production-centric kami, naging beneficiary-centric,” Yap said.

(Instead of being production-centric, we shifted to a beneficiary-centric approach.)

Under the expanded 4PH, beneficiaries may now choose from condominiums, house-and-lot units, lot-only options, or rental housing, depending on their financial capacity and location.

The department has also begun piloting rental housing, with an initial project launched at the University of the Philippines and discussions ongoing with other state universities and colleges.

Streamlined permits, revived mortgage program

To speed up housing delivery, DHSUD said it has streamlined permitting and licensing processes and implemented a zero-backlog policy for actionable applications.

The agency has also revived the Community Mortgage Program (CMP), approving 36 projects that are expected to benefit more than 6,000 informal settler families, with some projects already awarded in Valenzuela City.

Yap noted that these combined measures are intended to accelerate housing delivery while ensuring affordability and sustainability under the recalibrated target. — BM, GMA Integrated News