Demand-Side Subsidies for Housing

Abstract

Several governments in developing countries have been using demand-side programs to increase access to housing services among the poor. From the perspective of a social safety net, the main justification for providing housing assistance is that adequate shelter is a basic need that governments have a responsibility to help to fulfill, especially during times of hardship. In transition countries, assisting the poor with their housing-related expenditures can mitigate the hardship caused by planned price increases. The introduction of housing assistance in such cases makes it possible to implement reforms such as price increases or deregulation.