Uruguay has one of the lowest homeownership rates in Latin America, with renting as an acceptable form of tenure, despite a lack of investors in rental housing. Most of the government’s support for housing has focused on increasing homeownership rates through three main policies. First, the Ministry of Housing, Spatial Planning and Environment (MVOTMA) supplies loans and grants funded at the national level to purchase “economic units” by income-tested applicants with a minimum down payment; second, MVOTMA provides construction loans and grants to housing cooperatives; and third, MVOTMA produces housing units built through bidding procedures.
Unlike other countries in region, Uruguay has an adequate number of housing units and a fairly small informal housing sector, depending on macroeconomic circumstances in the country. However, the quality of housing units is a concern, with an estimated 90% of low-income housing units in need of major repairs. In order to increase the quality of housing, government loans are also available for renovation, subsidies are available to stabilize families in cooperatives, and there are credit provisions to help low-income families access construction materials.
Source: Peppercorn, Ira Gary; Taffin, Claude. 2013. Rental Housing : Lessons from International Experience and Policies for Emerging Markets. Washington, DC: World Bank. © World Bank.
Link: https://openknowledge.worldbank.org/entities/publication/7d393e20-dde6-5bd4-82dd-70e7c59613a6