Overview
Latin America housing finance in the 20th century has been characterized by the strong involvement of central governments—most of whom have viewed housing primarily as a social good. Government involvement has taken the shape of state mortgage banks, mandatory savings funds and direct and indirect subsidy programs. The struggle to reach the poor, especially those employed by the informal sector and living in informal housing, has been a constant challenge for Latin America over the decades—and it remains an issue today. Private housing mortgage systems began to emerge in the 90s to serve middle and upper-income homebuyers, yet governments have remained primary providers of housing for the poor. As a result of public and private sector efforts, Latin Americans are better housed today than they were in 1960s, and many countries have strong primary and secondary mortgage markets. However, many challenges for the future remain, including improving legal and regulatory frameworks, mitigating macroeconomic risks, and increasing the provision of secure land tenure rights.