Social Interest Housing Shortages Hit Families in Ecuador and Colombia

In Loja, Ecuador, Viviendas de Interés Social (VIS) units account for less than 20% of the local housing market despite a government program offering a 50% subsidy on interest rates (down to 4.99%). Limited private projects mean demand far outstrips supply, prompting calls for stronger coordination between national and municipal authorities to expand VIS construction.

In Colombia, the number of households abandoning VIS purchases jumped 168% over the past four years, rising from 12,405 cancellations to 33,187. Analysts link the surge to the removal of the "Mi Casa Ya" subsidy, higher mortgage rates, and the indexing of VIS prices to the minimum wage, which rose 23.7%, making many promised purchases financially untenable. Tight financing conditions and reduced purchasing power have also contributed to the rise in desistments.