Low-income Housing in Latin America and the Caribbean

Housing is one of the most important
sectors of the economy -- in developing countries as in
richer ones -- with large positive externalities in terms of
economic growth, public health and societal stability. It is
the primary form of asset accumulation for the poor -- often
representing more than 50 percent of the assets of
households. However, housing systems in developing countries
are dominated by badly designed, poorly targeted, and
inefficient government subsidies, market failures in land
markets, overwhelming informality, a predominance of
powerful vested interests and a growing slum population.
This paper addresses the following headings: the housing
sector in Latin American countries (LAC); the World Bank
Group housing strategy in LAC; and the challenges ahead.