The number of houses under construction is not equal to the total number of houses that need to be replaced in Ecuador

The latest list from 2022 revealed 151,749 houses under construction across the country. More than half were in the provinces of Guayas, Pichincha, Manabí, Azuay and Los Ríos.

However, this number is not enough to equal the total number of homes that need to be replaced in Ecuador.

The government is trying to turn underutilized state buildings into social housing

The latest figures in absolute numbers show that in the country There are 665,612 homes that need to be completely changed (quantitative deficit). In percentage terms, it corresponds 14.3% of the total number of registered houses as of December 2022according to the National Institute for Statistics and Censuses (INEC).

The Inter-American Development Bank assesses that it is necessary to add 40,000 per year just to maintain the current high deficitbut this increased.

The total percentage of homes requiring improvement or replacement was 49.1% in December 2019, rising four percentage points to 53.1% in the same month in 2022.

The national government is delivering 300 subsidized houses in Naranjit

Patricia Rivera, head of the Housing Advisory consulting firm, states that one of the problems in the dream of a home, along with social inequality and poverty that makes access to credit difficult, is the unpredictability of citizens when it comes to housing. time to buy.

“You have to read the technical specifications of the contract carefully because once signed it is an agreement between the parties (refers to the penalties that would be applied in case of withdrawal while canceling the entry and even construction details),” he said. assures.

During the cancellation period, which can last up to 36 months, Rivera says, according to the developer, the buyer should organize their debts, such as reducing credit card spending. In this way, they will be able to have a greater ability to pay when processing the mortgage loan.

“If I’m going to buy a house, I can ask for the longest possible term to cancel the down payment in order to reach the monthly installments and to have a margin that allows for the creation of economic stability during that time, thus improving access conditions. Credit“.

As outstanding debts are paid, the ability to pay increases. If the opposite happens and while the advance is being paid, the debt continues, there is a risk that the amount that financial institutions can ultimately lend will be limited.

The National Assembly approved the law on social housing

Another option is to use the rental mechanism with a promise to buy and sell, so that the payment of rent for a certain period of time also means the payment of a down payment. The difference is then financed with a mortgage. “This option is when two natural persons buy a used house, but it has not been used in recent years,” says Rivera.

The Private banks approved $566.51 million in mortgage loans between January and August of this yearwhich represents an increase of 30.4% compared to 2019.

The Cooperatives and mutuals of the national and solidarity economy allocated 317.9 million dollars from January to July this year.which is an increase of 12.7% compared to 2019.

“The construction sector is a fundamental pillar because it is a direct generator of jobs and an injector of economic resources in the country, and quickly,” he points out.

Data on housing loans from private banks show an increase in allocations for social and public housing.

Housing in the public interest (VIS) increased from $16 million between January and August 2022 to $32.87 million in the same period this year, more than double.

The same is happening with residential buildings of public interest (VIP) whose total loans granted by private banks increased from $47.34 million between January and August 2022 to $84.72 million in the same period this year.

However, loans for VIS and VIP represented 7% of the total mortgage loans approved from January to August this year by private banks.