The Philippine housing industry remains under pressure as millions of families struggle to find decent and affordable homes. With the housing backlog still stuck at 6.5 million units based on United Nations estimates, government and private developers are increasing home production as demand continues to outpace supply. But the challenge now is to build houses that Filipinos can afford, live in, and maintain safely. 

In the private sector, the Organization of Socialized and Economic Housing Developers of the Philippines (OSHDP) has long been a key player in addressing the country’s housing shortage. Its members develop projects aimed at lower and middle income families, working within government regulations on affordability, land use, financing, and construction standards.

Beyond building houses, OSHDP serves as an industry voice in engaging government agencies on policies affecting home ownership. Its role has become increasingly important as the public sector pushes for larger-scale housing programs – with developers facing the difficult task of keeping homes affordable while dealing with rising labor, land, materials, funding, and compliance costs.

Last month, OSHDP held its Affordable Housing Summit at the Fairmont Hotel Makati with the theme, “Building through Uncertainty: Restoring Confidence and Stability.” The conference brought together developers, government officials, finance professionals, and technology providers to examine the pressures confronting the housing industry.

Department of Finance (DOF) Undersecretary Michael Peter Alejandro delivered the keynote address on behalf of DOF Secretary Frederick Go, whose central message was that reducing housing costs requires stronger reforms, simpler government processes, and closer public-private cooperation to expand affordable housing. Other officials who delivered messages were Senator Joseph Victor Ejercito, Valenzuela Congressman Kenneth Gatchalian, and Makati City Councilor Bernadette Sese.

Under Republic Act 7279 signed by then President Corazon Aquino in 1992, subdivision developers are required to provide socialized housing equivalent to at least 20 percent of the total subdivision area or total project cost, subject to conditions of the Balanced Housing Development Program (BHDP). This was substantially strengthened by the BHDP amendments under Republic Act 10884, which lapsed into law in 2016. 

Congress is currently proposing reforms to the amended law through the House of Representatives’ recently approved House Bill 9697, which is now poised for Senate consideration. Its proposed changes to the BHDP include new compliance mechanisms and measures intended to bolster socialized housing delivery – presenting an opportunity to rethink the BHDP not merely as a regulatory obligation, but a platform to mobilize land, private capital, expertise, and completed housing toward a national objective.

Among the developers that are active in affordable housing is the Century Properties Group Inc., listed in the Philippine Stock Exchange as CPG. Known for its high-end vertical condominium projects such as Century City Makati, it has shifted to horizontal developments as majority of its vertical inventory had already been sold.

This growth model has more upside potential because of the enormous unmet demand of first-time homeowners. Besides, horizontal projects can be developed in phases, allowing developers to match construction with sales rather than committing huge capital outlays upfront to a high-rise tower.

Through its first-home brand called PHirst Residential, CPG has made affordable housing a major component of its business since it entered that segment in 2017. Its PHirst Park Homes target first-time buyers in growth corridors nationwide, with 32 master planned communities in Nueva Ecija, Pampanga, Bataan, Bulacan, Cavite, Laguna, Batangas, Quezon, Iloilo, Negros Occidental, South Cotabato, and Davao del Norte. As of 2025, it has completed more than 16,000 homes and plans to build over 13,000 additional houses. 

During the first half of 2026, CPG’s consolidated revenues of P7.6 billion were steady year-on-year, while its EBITDA rose nine percent to ₱2.3 billion from the same period last year – reflecting continued operating efficiency and margin discipline across its core businesses. PHirst Residential was CPG’s principal growth engine, growing seven per cent year-on-year and contributing 73 percent of the company’s consolidated revenues. 

Despite the ongoing geopolitical tensions in the Middle East, reservation sales rose 11 percent in the first six months this year – signaling resilient buyer confidence and sustained demand for CPG’s expanding portfolio in the horizontal residential sphere.