PIDS: Smaller households, elderly population affect housing demands

A new study shows family size and the age of the population affect housing needs


The Philippine Institute for Development Studies (PIDS) recently released a study showing that aging populations, shrinking household sizes, and evolving family dynamics are affecting housing demands. The study, “Demographic Trends and Housing Patterns in The Philippines” also underscored the significant implications of changes in household growth, structure, and composition over the past decades, reshaping the housing landscape.

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Aging population and shrinking households is reshaping the housing landscape.

“Age is an important predictor of housing demand, closely correlated with factors such as education, income, tenure status, fertility, and even work status,” said authors PIDS Vice President Marife M. Ballesteros, Research Specialist Jenica A. Ancheta, and Supervising Research Specialist Tatum P. Ramos.

From the 1970s to the 1980s, the authors noted a change in the population's age structure wherein “the number of individuals under age five is roughly equal to those in the 15 to 20 age group, while the adult-to-child ratio continues to grow.” This shift is attributed to declining fertility rates, longer life expectancy, and evolving societal norms.

The study revealed that the decrease in fertility rate from 6.0 children per woman in 1970 to only 1.9 in 2020 has caused dwindling household size. The average household size in 1970 of 5.9 members was down to 4.1 by 2020. However, almost 37 percent of Filipinos belong to larger households with six or more members, suggesting that many are “merging households”. The households are also growing slower as the population ages.

From 2010 to 2020, total households increased by 31 percent, but family-type households grew at a slower rate of just 26 percent. This means fewer new families are being formed, with delayed marriage and young adults staying longer at home contributing to the shift.

It was also noted that the age structure of household heads has undergone significant change. Individuals under 25 have the lowest rates of becoming household heads, while households headed by those aged 35 to 64 have increased. “From a housing perspective, these households are more likely to own their homes rather than rent, and have a lower demand for large housing,” the authors explained.

The number of single-person households has increased more than threefold from 2.9 percent in 1990 to 9.1 percent in 2020, reflecting greater autonomy of individuals The continued urban growth of Metro Manila showed a surge in its population aged 19-34, driven by job opportunities and educational prospects. In contrast, there’s a growing population of elderly residents in rural areas, a move observed as part of the reverse migration after retirement.

The study gives credence to the interconnection of demography, wealth, and the housing market has profound, implications that should be taken into account by housing authorities policy. The authors urge policymakers to act decisively to build a housing sector that is resilient, equitable, and responsive to the country’s changing demographics. 

In particular, PIDS calls for a “more responsive housing development that will address more affordable housing projects, age-friendly design to support the elderly, and investments in sustainable urban infrastructure to accommodate growing urban populations.”