Housing Options

Session 3
 “This is not to say that every family
should build its own house as the
urban squatters do, but rather that
households should be free to
choose their own housing…”

John F. Turner emphasized the need for a variety

of housing options and was hugely opposed to the
idea of mass housing production.
TURNER’S ARGUMENTS:
1.) Housing commodity as an
activity vs. a product, arguing that
the product should be “housing
satisfaction” than the housing unit
itself.
2.) He argued against the “autocratic”
style of planning and providing
housing settlements, further stating the
need for a certain level of participation by
users or a certain level of autonomy.
According to Turner, all housing productions
require the following:

1. Building Site
“Where do you build your house?”
2. Financing System
“How do you spend for your house?”
3. Contracting Systems
“Who will actually build the house?”
4. Tools and Materials
“What will the house be made of?”

An ideal housing production process offers a variety of choices in

employing the above four requirements.
 Turner charted out the choice patterns of
consumers in housing depending on their values or
priorities.

The Open Network not only has access to all four In a Closed Project, all choices are subsumed by
requirements, it also has several choices per requirement one autocratic housing provider; the decision-making
thereby allowing multiple options in acquiring a house is reduced to a choice among house models
To achieve housing satisfaction, the housing
market must therefore be “agile”.
HOUSING MARKET AGILITY 1. Building Site

2. Financing
System

3. Contracting
Systems

4. Tools and
Materials

Basically, more access to options---

the more agile or flexible the housing market is.
Note that there exists a
variety in demand.
Is the housing market in the
Philippines agile enough?
 NEED
So far we have
established the
need for
housing.

Let’s take a look

To further understand the at the housing
agility of the housing market market.
let’s take a look into housing
need in the Filipino context. MARKET
What are typical Housing
options in the Filipino
context?
RURAL AREA: Ethnic RURAL AREAS: Vernacular RURAL AREAS: Vernacular

URBAN: HIGH RISE

SUBURBAN SUBURBAN URBAN: SLUM

Any market needs to be dynamic and to
be dynamic, we need to have both
buyers and providers
Who provides housing in the
Philippines?
PRIVATE PUBLIC
SECTOR SECTOR
In the Philippines, the housing market
is technically categorized into four.
OPEN-MARKET

MEDIUM COST

ECONOMIC

SOCIALIZED
https://industry.gov.ph/industry/housing/
https://industry.gov.ph/industry/housing/
 Housing Demand and
Supply Profile

https://industry.gov.ph/industry/housing/
Who is the Filipino house
buyer? Are there Filipino
house buyers?
Philippines Largest Cities
QUEZON CITY (MOST POPULATED PHILIPPINE CITY) 2,679,450 PEOPLE
WIDER METROPOLITAN MANILA AREA (16 CITIES) 11,553,427 PEOPLE
. THE ENTIRE GREATER MANILA URBAN AREA SPILLS OUT BEYOND THE BOUNDARIES OF
METRO MANILA AND IS REPORTED TO CONTAIN AROUND 25 MILLION PEOPLE – A QUARTER
OF THE PHILIPPINES ENTIRE POPULATION

OTHER MAJOR CITIES:

MANILA (POP: 1,660,714),
CALOOCAN (POP: 1,378,856)
DAVAO CITY (POP: 1,363,337).

OF THESE, ONLY DAVAO CITY IS OUTSIDE OF THE METROPOLITAN MANILA AREA.

PHILIPPINE
POPULATION DENSITY/
SQUARE KILOMETER
AS OF 2009
In any market, we do not only consider the
potential quantity, we also consider the buying
capacity of the market.
What is the capacity
of Filipinos as
consumers?
 Common income
profiles:
Low Income
Mid Income
High Income

STANDARDS OF LIVING IN THE PHILIPPINES

AS OF NSO DATA RELEASED 2009

SOCIO ECONOMIC CLASSIFICATIONS (APPROXIMATED AND SIMPLIFIED)

CLASS A Extremely Rich Php 480,000 – Php 692,000 Monthly 0.1% of Population
CLASS B Rich (Movie Stars) Php 150,000 – Php 289,000 Monthly 0.3% of Population
CLASS C Professionals Php 51,228 – Php 100,593 Monthly 2.9% of Population
CLASS D Government Php 19,000 – Php 35,000 Monthly 20.1% of Population
Employees
CLASS E Daily Consumption Php 5,000 – Php 12,357 Monthly 76.7% of Population
Basis
Source: NSCB.gov.ph File 2003
 It is essential to identify the
Mid-Income market in
housing.

From John Turner’s theories, we can deduce that the Mid-Income

has the highest tendency to spend for housing-related expenditure---
- a fact that is important to housing providers.
Who is the Mid-Income market?
ARGUMENTS ON INCOME CLASS
DIGRESSION:

Digression may be according to

rate of income (used by the market)
Digression may be according to
the size of population
THE MID-INCOME DIGRESSION
ACCORDING TO RATE OF INCOME

SOCIO ECONOMIC CLASSIFICATIONS (APPROXIMATED AND SIMPLIFIED)

CLASS A Extremely Rich Php 480,000 – Php 692,000 Monthly 0.1% of Population
CLASS B Rich (Movie Stars) Php 150,000 – Php 289,000 Monthly 0.3% of Population
CLASS C Professionals Php 51,228 – Php 100,593 Monthly 2.9% of Population
CLASS D Government Php 19,000 – Php 35,000 Monthly 20.1% of Population
Employees
CLASS E Daily Consumption Php 5,000 – Php 12,357 Monthly 76.7% of Population
Basis
Source: NSCB.gov.ph File 2003
 CLASS A
THE MID-INCOME CLASS B
DIGRESSION CLASS C
ACCORDING TO CLASS D
THE SIZE OF CLASS E
POPULATION

SOCIO ECONOMIC CLASSIFICATIONS (APPROXIMATED AND SIMPLIFIED)

CLASS A Extremely Rich Php 480,000 – Php 692,000 Monthly 0.1% of Population
CLASS B Rich (Movie Stars) Php 150,000 – Php 289,000 Monthly 0.3% of Population
CLASS C Professionals Php 51,228 – Php 100,593 Monthly 2.9% of Population
CLASS D Government Php 19,000 – Php 35,000 Monthly 20.1% of Population
Employees
CLASS E Daily Consumption Php 5,000 – Php 12,357 Monthly 76.7% of Population
Basis
Source: NSCB.gov.ph File 2003
Agree or Disagree.
The buying capacity of the market is affected by its
purchasing values.
So, what do Filipinos
typically spend on?
 BREAKDOWN OF TOP-PRIORITY EXPENSES FOR
SOCIO-ECONOMIC CLASSIFICATIONS
LOW MID HIGH
FOOD 53.4% 34.8% 21.1%
HOUSING & SHELTER 10.7% 13.9% 16.6%
TRANSPORT & 7.7% 9.8% 12.5%
COMMUNICATION
Source: NSCB.gov.ph File 2003
From the viewpoint of the housing provider, would you think it
is safer to rely on the digression of the Mid-Income market
based on population size (quantity of the market), or the buying
capacity of the market?
Let’s take a look at
population vs housing need
In which places do we need to build
the most houses?
What are the possible reasons
for this need pattern?
On a global scale, the need for
housing is also densely concentrated
on the lower-income levels.
POPULATION HOUSING NEEDS
DISTRIBUTOR (GLOBAL SCALE)
The need for options gives birth
to several types of settlements
that coexist today.

Doxiadis:

Humans claim contact

and this increases the
need for options... for
complex cities.
But how much complexity
can a human live with?
THE NOMADIC THE THE FEUDAL MERCANTILISM
ECONOMY AGRICULTURAL SYSTEM
ECONOMY

1 2 3 4

?
COLONIALISM INDUSTRIALI INFORMATION ---
ZATION TECHNOLOGY
AND GLOBALI
ZATION

5 6 7
Is it organic settlement? Housing sustainability?
Is it possible to return to the nomadic economy?
 READINGS/ REFERENCES

Senate Economic Planning Office, “Housing Sector at a Glance” 2011

World Population Reviewhttp://worldpopulationreview.com/countries/the-

philippines-population/

John F. C. Turner and Robert Fichter, “The John Turner Archive: Freedom
to Build, Dweller Control of the Housing Process”, Collier Macmillan,
New York, 1972, Chapter 7

Colliers International, “Research and Forecast Report: Philippine Property

Market” 2011.
 HOUSING IN THE
PHILIPPINE CONTEXT