Gov't touts 4PH options as housing affordability concerns grow
MANILA, Philippines — The Marcos administration is expanding its Pambansang Pabahay para sa Pilipino (4PH) program as housing costs continue to strain Filipino households, following data showing the Philippines among the most affected in Asia.
In a statement Sunday, March 29, the Department of Human Settlements and Urban Development (DHSUD) said the expanded 4PH program will offer a mix of low-interest home loans, rental housing and incremental housing options based on a family's ability to pay.
The announcement comes after The Economist, citing Gallup data, reported that the Philippines had the highest share of respondents experiencing housing-related financial difficulties in the past 12 months. More than half of Filipino respondents reported such problems.
Where homes are most unaffordable to its citizens
Affordability pressures
Other data point to the same trend. The Urban Land Institute's 2025 Asia Pacific Home Attainability Index found that rents in Metro Manila can exceed household incomes, with median rents equivalent to about 141% of median monthly earnings.
It was a slight improvement from ULI's 2023 report that showed home prices in Philippine cities ranging from 8 to 30 times median annual household income, far above affordability thresholds.
DHSUD Secretary Jose Ramon Aliling, meanwhile, said the expanded 4PH program now goes beyond traditional homeownership schemes.
The program matches beneficiaries with housing options ranging from socialized housing to rental units and incremental housing.
Qualified beneficiaries, particularly from the working class, may access Pag-IBIG loans at subsidized rates as low as 3% per year for up to 10 years.
The department said more than 10,000 families have availed themselves of the subsidized rate.
For those not ready to buy, DHSUD said rental housing projects are being rolled out, including developments at the University of the Philippines' Diliman and Los Baños campuses.
The government is also expanding incremental housing and the Enhanced Community Mortgage Program for lower-income households and informal settlers.
Distinction, delivery challenges
4PH is separate from the Department of Social Welfare and Development's 4Ps cash transfer program. While 4PH is the administration's flagship housing program, it has widened coverage to include the working and middle class, while rental and community-based options are targeted at lower-income groups.
The program is being implemented amid a large housing backlog and revised targets.
President Ferdinand Marcos Jr. initially set a goal of 6 million housing units by 2028, but this was later reduced to 3.2 million due to implementation constraints.
Such government-backed programs, however, are usually accessed by lower-income households. A broader segment of the population in Metro Manila is affected by prices set by property developers.
Such companies typically build upmarket units for larger margins instead of affordable ones, Quezon City Mayor Joy Belmonte admitted to the Economist. — Camille Diola with reports from Jean Mangaluz
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