Low-income housing finance in Colombia

Arbelaez, Maria Angelica and Camacho, Carolina and Fajardo, Johanna (2011): Low-income housing finance in Colombia. Published in: IDB WORKING PAPER SERIES No. 256

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Low-income housing, Housing finance, Housing subsidies, Quality of life, Quality of dwelling, Low-income housing mortgage market
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I30 - General; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I38 - Government Policy ; Provision and Effects of Welfare Programs; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R20 - General; D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans ; Loan Guarantees ; Credits ; Grants ; Bailouts; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R38 - Government Policy

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