10 Report-SEDPI Vince

Vince Rapisura, Co-founder and President of SEDPI Group of Social Enterprises, presented findings from a recent study that pointed to a stark reality. The current model of socialized housing is fundamentally misaligned with the needs and capacities of the country’s poorest sectors. 

Framed around the theme “From Compliance to Communities,” Rapisura emphasized that solving the housing crisis requires more than increasing supply–it demands a shift toward collaborative, system-wide solutions involving government, private developers, financial institutions, and grassroots organizations.

At the center of the study are nano-enterprises and informal sector workers–farmers, fisherfolk, and low-income households with limited and irregular incomes. These groups represent the majority of those in need, yet remain largely excluded from existing housing solutions. Rapisura pointed to real-life cases of families living near their livelihoods in rural areas, but being offered housing options that are often far, costly, and poorly suited to their way of life. The mismatch, he argued, is not just financial, but structural.

This disconnect is reflected in the scale of the housing backlog. Estimates show that the country faces a growing deficit that could reach up to 12 million units, with the majority falling under socialized housing. Despite an annual demand of around 478,000 units, only about 128,000 are produced each year–resulting in a widening gap that continues to compound over time. Yet the issue is not simply one of supply.

Rapisura highlighted that affordability remains the core constraint. For many low-income households, the realistic monthly capacity for housing payments ranges only between P800 to P2,000. At this level, even the lowest-priced housing units in the market remain out of reach.

In practice, this means that many families would need to allocate a significant portion of their income–sometimes up to 40% –just to afford housing, leaving little for basic needs. On the supply side, developers face their own constraints.

Based on industry estimates presented in the study, the total cost of producing a typical socialized housing unit can reach up to P1.1 million–exceeding existing price ceilings. A large portion of this cost is driven not by the house itself, but by land acquisition, infrastructure development, and regulatory requirements.

As a result, profit margins for socialized housing remain thin, often significantly lower than those in mid- to high-end developments. This creates a strong incentive for developers to prioritize higher-income markets, while treating socialized housing primarily as a compliance requirement rather than a viable business segment.

This dynamic, Rapisura argued, reveals that the current system relies too heavily on market-based and cross-subsidy mechanisms that are insufficient to address the scale of need.

Instead, he proposed a rebalancing of responsibilities. Public infrastructure–such as roads, drainage, and utilities–should be treated as a government obligation, rather than costs passed on to low-income buyers. By shifting these costs away from developers, housing prices could be significantly reduced, bringing them closer to what low-income households can realistically afford.

At the same time, regulatory processes must be reformed. Developers currently face lengthy and fragmented approval systems, with some projects requiring over a hundred separate signatures and taking years to move forward. These delays increase costs and discourage participation in the sector. To address this, Rapisura proposed streamlined, unified permitting systems and faster land conversion processes, particularly for areas designated for socialized housing. Beyond policy and cost structures, the study also explored alternative housing models better suited to low-income households. These include incremental or “bare housing” approaches, where families start with a basic structural unit and gradually improve it over time, as well as community land trust models that separate land ownership from housing to maintain long-term affordability.

Such approaches recognize that housing is not a one-time purchase, but a process that evolves alongside a household’s economic capacity.

Financing also remains a major gap. While microfinance institutions and government lenders both play roles in the housing ecosystem, existing loan products are often mismatched with the realities of low-income borrowers–either due to high interest rates, short repayment periods, or restrictive eligibility requirements.

Rapisura pointed to the need for more flexible financing mechanisms, as well as stronger partnerships with microfinance institutions, which can serve as intermediaries in organizing communities, managing risk, and improving repayment outcomes. Ultimately, the study calls for a shift away from rigid, one-size-fits-all models toward a more adaptive and inclusive housing system.

For Rapisura, the goal is to move beyond compliance-driven approaches and toward solutions that are grounded in how people actually live, earn, and build their lives over time. In doing so, socialized housing can evolve from a policy obligation into a meaningful pathway for improving the lives of millions of Filipinos.