The Philippines is facing a significant housing crisis, with an estimated backlog of 3.7 million units that is unlikely to be resolved by 2028. The Department of Human Settlements and Urban Development (DHSUD) asserts that current government plans are inadequate without substantial contributions from the private sector.
Government Housing Targets Insufficient
We do not expect these numbers, the 1.13 million, to address the 3.7 million backlog by 2028 because… private sector production needs to be included to address the backlog.
Jose Ramon P. Aliling, Housing Secretary
- 1.13 million housing units targeted by DHSUD
- 1.1 million households live in substandard conditions
- 1.1 million households classified as 'doubled-up' living situations
Secretary Aliling's statements came during a budget briefing, where he clarified that the 1.13 million anticipated units are insufficient to meet the full demand. The Philippine Statistics Authority (PSA) indicates that a substantial portion of the housing deficit results from substandard housing requiring repair.
The department has earmarked P5.49 billion for housing initiatives in the 2027 National Expenditure Program (NEP), significantly lower than the P60 billion initially requested. This funding gap of P54.52 billion presents a major hurdle in addressing the housing needs.
The DHSUD has introduced various strategies to maximize limited resources, such as expanding the Pambansang Pabahay Para sa Pilipino (4PH) program. This initiative aims to diversify housing options, including community-led developments and rental housing.
In a collaborative effort, 15 government agencies have signed Joint Memorandum Circular No. 10-2026 to streamline housing permit processes, which could potentially shorten approval times for developers by 15%.