Confronting the Housing Challenge in Latin America Part I – Reflections on the Evolution of the Housing Market in Latin America: Realities and Dreams

Abstract

While much necessary groundwork has been undertaken, there is not a single policy approach that will resolve housing problems in Latin America. This report discusses the critical factors underpinning housing demand and the current needs in the region, most of them stemming from its past economic and political histories. We document the quantitative and qualitative housing deficits in Latin America, focusing in Colombia and México. Only 10 critical parameters allow us to characterize the future of housing in these countries, and to estimate their home construction needs in the short to medium run. Finally, we benchmark the future demand for housing to GDP growth and its corresponding land requirements.