NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Friday, October 11, 2013

There is plenty of housing in Costa Rica but little for those who need it.

“The State of Housing and Urban Development in Costa Rica 2012,” released Wednesday, observed that a glut of expensive housing developments has out-priced many middle class and poor Costa Ricans as developers emphasized “walled city” style developments with private security and other amenities like swimming pools.

The asymmetry between supply and demand in the housing sector is one reason that Habitat for Humanity International and Plycem, a Mexican building materials company, are partnering with local banks to start a microfinance pilot program here to help the many poor Costa Ricans add on to or build their own homes.

“The supply available does not meet the actual demand,” said Foundation for the Promotion of Housing (FUPROVI) Director Eloisa Ulibarri during the report’s presentation Wednesday.

Despite the abundance of high-priced housing, Costa Rica currently faces a qualitative housing “deficit” of 152,464 homes, slightly better than in 2011.