Accumulating wealth: property values in informal settlements and public housing complexes

Abstract

At this point in Quito’s history, once legalized informal settlements and public housing complexes are consolidated, it is relevant to look back and evaluate these two types of housing. Specifically, this study proposes that the time has come to measure whether both legalized and public housing have been able to gain value over time. Three samples have been collected and processed: 1) 200 dwelling units from a legalized informal settlement, 2) 40 dwelling units from a public housing complex, and 3) 100 citywide. Our results show that dwellings in the legalized informal settlement gained more percentage value and required a lower initial investment than public housing. However, it was also observed that values from the legalized informal settlement are starting to decrease. Two types of conclusions can be drawn from these results. Retrospectively, it is possible to conclude that public housing in Quito has not been competitive compared to legalized informal settlements and, therefore, has failed to target low-income families. But looking into the future, these results show that it is time to rethink housing public policy in that city. The time has come for public housing to be reconceptualized and for legalized informal settlements to be sustained.