As a result of high levels of income inequality, rapid urbanization, and historically ineffective housing policies, over one-third of Colombia’s population faces a housing deficit. This deficit is largely qualitative, meaning there is a deficiency in the material and social conditions of households, rather than in housing space available. Over the past three decades, the focus of housing policy has been on expanding the mortgage market and developing demand-side subsidies and financial instruments that promote homeownership. More recently, policy has focused on small-scale retrofitting, rental programs, and a rural housing program.
Though these approaches have made significant progress toward remedying the quantitative housing deficit, issues still remain in qualitative deficits – signaling the need for a balanced policy approach with greater investment in upgrading, which reaches more families at the lower end of income distribution. The benefits of a balanced housing policy also have the ability to reduce poverty, consolidate the middle class, increase economic output and employment demand, and benefit vulnerable populations.
Source:
World Bank. (2021) Striking a Balance: Toward a Comprehensive Housing Policy for a Post-COVID Colombia. World Bank, Washington, DC.