Posts

Showing posts from February, 2009

Finance for Low-Income Housing

Finance for Low-Income Housing

Finance for Low-Income Housing and Community Development
Diana Mitlin



I. INTRODUCTION



In most urban areas in high-income nations and many middle-income nations, good quality, legal housing is expensive. Most of it would not have been built without mortgage finance; middle-income households, and even most upper-income groups, need mortgages in order to buy it, or long-term finance in order to build it. In most cities in Africa, Asia and Latin America, low-income households cannot afford legal housing or good quality housing. They either rent (usually in poor quality overcrowded dwellings) or buy, or build in illegal settlements. They cannot get conventional housing finance because their homes are in illegal settlements and they lack the income or formal documentation that housing finance agencies require.



However, there has been much innovation in finance to support housing, infrastructure and community development for low-income groups over the last 15 years…

A Value Chain Framework for Affordable Housing in Emerging Countries

A Value Chain Framework for Affordable Housing in Emerging Countries
A Value Chain Framework for Affordable Housing in Emerging Countries

Bruce Ferguson



Housing the low/moderate-income majority of developing countries creates enormous potential demand for many types of goods and services (World Resources Institute and International Finance Corporation, 2006) – from cement to home credit. However, designing, marketing, and delivering products for this market requires understanding the settlement and shelter problem of low/moderate-income families.

Currently, one-sixth of the world's population – one billion people – live in urban slums in emerging countries. In addition, virtually all net growth of 2.6 billion in world population between now and 2050 is projected to occur in these cities. In effect, relatively poor nations will build the equivalent of a city of more than one million people each week for the next 45 years. Absent major change, the bulk of this new development wi…

A Value Chain Framework for Affordable Housing in Emerging Countries

A Value Chain Framework for Affordable Housing in Emerging Countries
A Value Chain Framework for Affordable Housing in Emerging Countries

Bruce Ferguson



Housing the low/moderate-income majority of developing countries creates enormous potential demand for many types of goods and services (World Resources Institute and International Finance Corporation, 2006) – from cement to home credit. However, designing, marketing, and delivering products for this market requires understanding the settlement and shelter problem of low/moderate-income families.

Currently, one-sixth of the world's population – one billion people – live in urban slums in emerging countries. In addition, virtually all net growth of 2.6 billion in world population between now and 2050 is projected to occur in these cities. In effect, relatively poor nations will build the equivalent of a city of more than one million people each week for the next 45 years. Absent major change, the bulk of this new development wi…

The Next 4 Billion

The Next 4 Billion
The Next 4 Billion — The Housing Market



Allen Hammond, William J. Kramer, Rob Katz, Julia Tran, Courtland Walker





Housing is one of the larger base of the pyramid (BOP) markets—larger than transportation, smaller than energy. The market encompasses major spending items—rent, mortgage payments (or imputed rents), and repairs and other services. But the BOP housing market is perhaps uniquely handicapped by informality. Both lack of legal title to housing in squatter settlements—Hernando De Soto’s “dead capital”—and lack of access to mortgage financing for the BOP limit its potential size.



Despite these barriers, both private sector approaches and policy reforms—sometimes catalyzed by NGOs—are showing how to tap this market in ways that provide significant benefits for BOP households. In Asia especially, where mortgage markets are undeveloped and land prices high relative to income, the market potential—and the need—is huge (Bestani and Klein 2006).



How large is the market?



T…

The Next 4 Billion

The Next 4 Billion
The Next 4 Billion — The Housing Market
Allen Hammond, William J. Kramer, Rob Katz, Julia Tran, Courtland Walker


Housing is one of the larger base of the pyramid (BOP) markets—larger than transportation, smaller than energy. The market encompasses major spending items—rent, mortgage payments (or imputed rents), and repairs and other services. But the BOP housing market is perhaps uniquely handicapped by informality. Both lack of legal title to housing in squatter settlements—Hernando De Soto’s “dead capital”—and lack of access to mortgage financing for the BOP limit its potential size.

Despite these barriers, both private sector approaches and policy reforms—sometimes catalyzed by NGOs—are showing how to tap this market in ways that provide significant benefits for BOP households. In Asia especially, where mortgage markets are undeveloped and land prices high relative to income, the market potential—and the need—is huge (Bestani and Klein 2006).

How large is the market?

T…