Housing sector trends: Audit irregularities in Chile and construction declines in Colombia

In Chile, an audit by the Contraloría General de la República has revealed significant irregularities in the ‘Integración Urbana de Campamentos’ program, managed by the Ministry of Housing and Urbanism. The investigation found that 168 beneficiaries of rental subsidies were deceased, with the Subsecretaría de Vivienda taking up to 1,133 days to regularize these contracts, resulting in an estimated fiscal loss of over $110 million. Additionally, 172 beneficiaries were found to be renting properties to close relatives, violating program rules, and 19 were renting to spouses. Other findings included payments to individuals who already owned homes.

In Colombia, the social housing sector is facing a prolonged contraction. The construction of social interest housing (VIS) has seen 39 consecutive months of decline. Between January and July 2026, housing starts fell by 17.9% compared to the previous year, driven by high construction costs and expensive credit. New home sales also dropped by 11.3% during the same period.

In Peru, the Fondo Mivivienda reported that 80% of the social interest housing supply is located in the country's interior, with 52,766 units available outside of Lima and Callao. This distribution aims to decentralize housing access and provide formal living conditions to families in various regions, including La Libertad and Piura.