Brazil’s Housing Deficit Figures Show Improvement

Date Published 11/25/2013
Author Eduardo Rottman
Country Brazil

Brazil’s Housing Deficit Figures Show Improvement

November 25, 2013

IPEA, Brazil’s Office of Statistics, calculated that the total housing deficit decreased from 5.59 million housing units, in 2007, to 5.24 million housing units in 2012, a reduction of 6.3%. The percentage decrease is larger in reality since the number of housing units increased by 12.8% in the same period. The housing deficit for households with incomes under 3 minimum wages increased, however, from 70.7% in 2007, to 73.6% in 2012, despite the large social housing programs targeted to this income group-- PNH, Planhab, Minha Casa Minha Vida.

The housing deficit is defined in the following way: i) non-permanent dwelling; ii) involuntary occupancy of more than two families per dwelling unit (prefer to live separately); iii) overcrowding (more than three people sleeping in one room permanently, and iv) excessive rental payments relative to income (over 30% of household income). The excessive rental payment ratio was the main cause of the increase in the deficit for the low income segment.Most other indicators improved. Rent prices increased strongly due to real estate price appreciation, particularly in large cities, where the housing deficit is concentrated.

Link to report

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