For millions of Filipinos, owning a home is a dream the market was never built to fulfil

Dayanara Lim, a 31-year-old finance professional, spent two years attempting to buy a home in Metro Manila through a rent-to-own agreement. She paid 25,000 pesos ($570) monthly for a 30 sq m one-bedroom unit, only to abandon the plan when she couldn’t secure a bank loan while supporting her family. Her average monthly income of 29,310 pesos exceeded the national average of 21,544 pesos, yet she still struggled to afford homeownership. The Philippines faces a severe housing affordability crisis, with condominium prices in Manila at 19.8 times median annual household income in 2024—far above the Urban Land Institute’s recommended threshold of five times. Rent-to-own schemes have surged as a workaround, but buyers risk losing premium payments if they fail to secure financing. Many, like Lim, end up renting smaller units at lower costs, delaying homeownership indefinitely. Economists blame decades of stagnant income growth and a property boom triggered by offshore gambling operators (POGOs) from 2015 to 2019. These firms, catering to Chinese clients, flooded Metro Manila’s rental market, pushing prices up sharply—studios that once rented for 15,000 pesos now cost 25,000 to 30,000 pesos. The crisis persists despite efforts to address it, leaving homeownership out of reach for millions. Lim now rents a smaller 28 sq m flat for 18,000 pesos monthly but remains determined to own a home someday. Her experience reflects broader challenges: Filipinos earning above-average incomes still face insurmountable barriers in a market ill-equipped to meet demand. The situation underscores systemic issues requiring policy intervention to bridge the affordability gap.