Housing Policy Must Focus on People Rather Than Products

Bogotá is rethinking housing as a driver of urban transformation. In this interview, Vanessa Velasco Bernal, Chief Secretary of Bogotá’s District Secretariat for Habitat, explains how the city connects housing, financial inclusion and urban revitalisation to create better access to opportunities.

Bogotá is presenting housing not only as a social policy, but as a driver of urban transformation. What is the core idea behind this approach?

The central idea is that housing should not be understood as an isolated social intervention, but as a catalyst for broader urban transformation. Through Bogotá’s Urban Revitalisation Strategy, we have prioritised 20 Revitalisation Areas covering 91.73 million square metres – almost a quarter of the city’s urban land – and home to more than 1.5 million residents.

Rather than continuing to expand the city outwards, we are investing in neighbourhoods that already have infrastructure, public utilities and strong transport connections, creating better places to live while making more efficient use of public investment.

The same principle underpins our Building Reuse Programme, which converts vacant and underused buildings in consolidated urban areas into housing for the city’s most vulnerable households. This allows families to live in well-connected neighbourhoods with greater access to opportunities, while attracting new investment and residents back into the city centre. Ultimately, urban transformation is not achieved through physical infrastructure alone; it is achieved by creating places where people can access opportunities, participate in the economy and build better futures for their families.

From your perspective, what makes an urban economy truly inclusive – and where does housing fit into that vision? 

A truly inclusive urban economy is one in which a person’s place of birth or household income does not determine their access to opportunities, services or social mobility. When affordable housing is located in well-connected areas, we not only protect vulnerable households from exclusion – we also stimulate the entire construction value chain. Between 2024 and 2025, the sector recorded double-digit growth across its main indicators: Project launches increased by 36.7 per cent, planning approvals by 24.7 per cent, and housing sales by 21.3 per cent. Through our housing programmes, we also generated more than 33,248 direct jobs and 89,769 indirect jobs.

Our housing strategy also promotes financial inclusion. Through the Financial Education and Inclusion Pathway, more than 15,000 people have enrolled and over 6,000 have graduated, enabling households historically excluded from formal banking to build a credit history and eventually access mortgage finance. In 2025, women received 52.7 per cent of all mortgage loan disbursements in Bogotá, exceeding the national average.

Housing is also a powerful economic multiplier. Backed by an investment of US$250 million, the strategy shows that every US$1 invested in new housing generates approximately US$1.80 in economic activity, while each US$1 invested in home improvements generates US$1.52, demonstrating that housing simultaneously creates jobs, stimulates local economies and improves living conditions.

Bogotá’s housing strategy, Mi Casa en Bogotá, connects subsidies, housing improvements, rental programmes, urban revitalisation, mobility and financial inclusion. Why is this integrated approach necessary?

In Bogotá, 70.2 per of households earn less than four minimum wages, while 36.9 per cent of the employed population works in the informal economy. For many families, the challenge is not simply paying for a home; it is also accessing credit, saving for a deposit, improving inadequate housing or finding a well-located home connected to the city’s opportunities.

That is why Mi Casa en Bogotá was conceived as an integrated strategy rather than a stand-alone subsidy programme. It combines financial education and inclusion, rental support, home improvements, homeownership subsidies and land generation for social housing, creating multiple pathways into the formal housing system. Instead of offering a single solution, the strategy supports households according to their needs and stage in the housing journey, expanding access for groups that have historically been excluded.

The approach is already delivering measurable results. More than 33,000 households have accessed housing solutions; around 60 per cent of subsidies have been allocated to the lowest-income households; 64 per cent of beneficiaries are women, while 28 per cent are young people, alongside increased support for other priority population groups. At the same time, more than 1,300 homes have been improved, enhancing living conditions and reducing health risks, while 12% per cent of subsidies have been allocated to homes located in central and revitalisation areas with access to mass transit and quality urban services.

The city argues that investment in housing can generate employment, strengthen local value chains and support economic resilience. How do you ensure that these benefits also reach low-income and vulnerable communities?

Mi Casa en Bogotá adopts a targeted approach to ensure that every component of the programme reaches the city’s most vulnerable households. Six out of every ten subsidies are allocated to families earning less than two minimum wages, while the Temporary Rental Support Programme specifically serves households earning up to one minimum wage, providing an essential first step into the formal housing system.

The results demonstrate the effectiveness of this targeting. Sixty-four per cent of beneficiaries are women heads of household, 28 per cent are young people, and 15 per cent belong to priority groups, including conflict victims, persons with disabilities and ethnic communities. This approach ensures that those with the greatest housing needs gain access to adequate housing, demonstrating that economic growth and social equity can advance together.

Bogotá wants to position its model as a reference for other cities in the Global South. What lessons do you think are most relevant for cities facing similar challenges around housing, inequality and urban growth?

The first lesson is that housing policy must focus on people rather than products. Mi Casa en Bogotá is an access policy that prioritises those facing the greatest barriers, including women heads of household, young people and conflict victims, ensuring that public support reaches those who need it most.

Second, location matters as much as the housing itself. Building affordable housing on the urban periphery without transport or services does not reduce inequality. Integrating housing with mass transit, public space and essential services enables families to access better employment, education and social opportunities.

Third, Bogotá has complemented financial support with financial education, progressive savings and tailored support. The housing pathway accompanies households from Temporary Rental Support to Savings for My Home, financial inclusion, homeownership subsidies, mortgage assistance and home improvements, allowing families to progressively achieve secure housing.

Finally, Bogotá has developed a sustainable financing model. By using the planning obligations established under the city’s Land Use Plan (POT), private developers help finance part of the housing system, while fiduciary trust mechanisms ensure transparency and accountability. This reduces dependence on central government funding and strengthens the long-term sustainability of the model.