Low-Income Housing Finance in Colombia
Peer Reviewed
Date issued
August 2011
Subject
Housing;
Social Development;
Public Administration
JEL code
D61 - Allocative Efficiency • Cost—Benefit Analysis;
H81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts;
I30 - Welfare, Well-Being, and Poverty: General;
I31 - General Welfare, Well-Being;
I32 - Measurement and Analysis of Poverty;
I38 - Government Policy • Provision and Effects of Welfare Programs;
O17 - Formal and Informal Sectors • Shadow Economy • Institutional Arrangements;
R20 - Household Analysis: General;
R28 - Government Policy;
R31 - Housing Supply and Markets;
R38 - Government Policy
Country
Colombia
Category
Working Papers
This paper explores the role played by policy instruments in access to housing finance by low-income households. It also analyzes the impact of housing credit and subsidies on both the quality of life and the quality of dwelling of the beneficiaries. Using the Quality of Life Surveys conducted in Colombia in 2003 and 2008, the study finds that policy instruments aimed at easing access of low-income households to affordable housing such as subsidies and loan guarantees have played a modest role in increasing the use of mortgages as a source of funding. Despite this, subsidies were found to have had a significant impact on both the quality of dwelling and the quality of life. Therefore, this paper suggests promoting the use of both instruments by improving their design and targeting.
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