The Philippine Institute for Development Studies (PIDS) has released a study titled "Urban Revitalization and Shelter Inadequacy: A Geospatial Analysis," which examines the impact of urban revitalization on housing affordability in Metro Manila. Researchers Jenica Ancheta, Marife Ballesteros, and Tatum Ramos found that while residential development significantly increased and improved in quality between 1990 and 2020, the benefits have been unevenly distributed.
Rapid Growth and Rising Land Values
The study identifies a multicenter pattern of growth, with new residential and commercial clusters emerging in the southern and northern parts of Metro Manila. Land values within a three-kilometer radius of revitalized districts surged by 500 to 600 percent on average, with even larger increases within a one-kilometer buffer. These rising zonal values reflect asset creation but also highlight inequality between low-income communities and those living near revitalized areas.
Outward Movement of Affordable Housing
As land prices rise, low-income households are pushed farther from city centers, leading to "spatial inequities" and communities lacking basic infrastructure. The researchers emphasize that the extent of value capture for public interests and equitable access to shelter is not evident, pointing to significant displacement of low-income households.
Most economic and socialized housing projects are built outside Metro Manila, particularly in adjacent provinces of Regions III and IV-A, while new construction in the capital is dominated by condominium projects catering to higher income groups. This mismatch indicates a gap between urban growth and housing affordability.
Market Dualism
The authors note that pockets of urban poor areas are interspersed between hot spot areas and core districts, indicating market dualism where a housing market in poor settlements coexists with speculative market from business development firms.
Policy Recommendations
The study argues that current housing policies relying on subsidies, tax incentives, and expanding land supply are inadequate. Improving road infrastructure to Metro Manila will not address affordability, as better access accelerates urbanization of peripheral areas.
The researchers highlight the Philippines' "new" urban agenda under the National Housing and Urban Development Sector Plan 2040 and the Philippine New Urban Agenda, which promote inclusive urban development through spatially and thematically integrated settlements, including public rental housing and mixed-income developments.
Challenges with UDHA
The Urban Development and Housing Act (UDHA) provides legal basis for humane resettlement and socialized housing, but the researchers argue it falls short in addressing land governance issues. Humane resettlement focuses on process rather than ensuring in-city relocation; land identification is merely a listing exercise; land expropriation may conflict with constitutional constraints; and balanced housing requirements do not ensure spatial integration.
Stronger Land Governance Needed
The study urges national and local governments to move away from reliance on land revenues and instead direct or regulate allocation of areas for affordable housing through zoning regulations, including ownership or development expropriation. They recommend mandating mixed-income planning in all urban revitalization projects and using escrow funds from balanced housing regulation to co-finance inclusive projects.
The researchers also highlight community land trusts, where landownership remains in trust governed by corporate guidelines rather than the real estate market. The study calls for a comprehensive development approach ensuring low-income communities are part of the transformation process, not fenced off from developments.
