Social housing in Latin America: Opportunities for affordability in a region of housing need

Abstract

In advanced capitalistcountries, the term ‘social housing’ normallyrefers to social rented housing, and itsprovision can be examined within the context ofthe type of housing welfare regime that hasevolved within the country under consideration.However, in large parts of Latin America –because of minimal affordability and limitedinvestment – ‘social housing’ is very much amarginalised tenure and – apart from a smallsocial-rented sector – comprises illegalshelter in shantytowns, assisted self-buildhousing, and low-cost owner-occupation. Itwould therefore be unproductive to examinesocial housing in Latin America within thecontext of any of the welfare regimes thatprevail in the developed world. Within the region, large-scale migration intothe major urban areas created a substantial andgrowing housing deficit among the poor in thelatter half of the twentieth century. At first,there was an attempt to satisfy housing needsby the provision of social rented housing, butit was soon recognised that such accommodationwas unaffordable to the majority of the poor,while municipal governments were constrained bybudgetary considerations from increasing oreven maintaining its supply. At the same time,it was realised that informal housing could beupgraded more cost-effectively, and that forits future development the ‘legalisation’ oftenure was essential; while self-build formalhousing could be constructed through theprocess of community funding. By the 1990s,even the middle-income segment wasdisadvantaged in the housing market asunemployment and interest rates rose and realwages fell, and therefore – through theintroduction of means-tested demand-sidesubsidies – the term ‘social housing’ wasextended to the conventional owner-occupiedsector. Clearly, welfare regimes in Latin America areat a rudimentary stage in their development,although there is a tendency for governments toembrace neo-liberal housing policies. But at atime of fiscal constraint, it is a cause forconcern that macroeconomic priorities mightmake it more difficult for a large proportionof the population of the region to satisfy itshousing needs.