As of 2022, Chile’s Ministry of Housing and Urban Development (Minvu ) estimated the national housing demand at approximately 643,534 homes. This figure was derived from data collected in the 2017 Census and accounts for around 80,000 families residing in informal settlements or encampments. gob.cl

To address this significant housing shortage, the Chilean government launched the Emergency Housing Plan in 2022. The plan aims to construct 260,000 housing units by March 2026, thereby covering at least 40% of the estimated housing deficit. (Source)

The housing shortage is most acute in the Metropolitan Region, which accounts for about 40% of the national deficit, followed by the Valparaíso and Biobío regions. gob.cl

It’s important to note that different organizations may report varying figures regarding the housing deficit. For instance, the Chilean Chamber of Construction’s 2022 Housing Balance report estimated the national housing requirements at 935,000 homes, marking a 13% increase since 2017 and the highest level recorded to date.

Financing Mechanisms

Financing for co-operative housing in Chile involves a combination of government subsidies, member contributions, and external funding from non-governmental organizations. The Ministry of Housing and Urban Development’s initiatives provide financial support for land acquisition and construction. Additionally, innovative projects like Quinta Monroy have demonstrated alternative financing models that blend public funding with resident investment, enabling affordable and adaptable housing solutions.

Chile’s Emergency Housing Plan: Tackling the Housing Deficit and Inequality

Launched in 2022, Chile’s Emergency Housing Plan is a government initiative led by the Ministry of Housing and Urban Development (Minvu). It’s aim is to address the country’s long-standing housing crisis and unequal access to decent housing. The plan marks a significant shift toward restoring the state’s leadership role in housing development and urban planning.

Key Objectives of the Emergency Housing Plan

• Reinstate the State’s Leadership Role in housing planning, development, and land management.

• Deliver 260,000 Housing Units during the current government term, with a focus on speed, quality, and equity.

• Promote Projects Nationwide, ensuring they are present in all municipalities and include social infrastructure.

• Strengthen the Public Land Bank to increase the availability of land for social housing.

• Diversify Housing Access Models, including support for housing co-operatives, self-managed projects, and fair-price rental schemes.

• Engage Directly with Residents and Local Governments to tailor solutions to real community needs.

• Modernize Construction Methods, adopting sustainable, efficient, and cost-effective building techniques.

Addressing Emerging Housing Challenges

The plan is designed to reflect recent trends and challenges in Chile’s housing landscape, including:

• High rental prices and increasing housing mobility

• Informal settlements and encampments

• Overcrowding, social isolation, and inadequate housing conditions

• Excessive delays in housing allocation for community-based committees

• Lack of protection for vulnerable groups

By recognizing and responding to these issues, the plan expands the range of housing tenures available and integrates proposals from regional and municipal governments. This approach ensures that solutions are locally relevant and nationally coordinated.

Monitoring, Accountability, and Measurable Goals

The Emergency Housing Plan sets annual targets by region and municipality, and includes a system for tracking progress. Regular updates will be reported to Congress to ensure transparency and accountability.

Focus on Encampments: “Construyendo Barrios” (Building Neighborhoods)

A central component of the plan addresses the urgent needs of the roughly 80,000 families living in encampments. The Construyendo Barrios program aims to regularize and urbanize 300 informal settlements, ultimately benefiting approximately 25,000 families. These efforts are focused on integrating marginalized areas into the urban fabric with infrastructure, services, and legal housing solutions.

As of February 2025, 181,042 homes have been completed or handed over.

Another 126,955 homes are under construction.

Cooperative Housing Models

Limited cooperatives: These cooperatives have a maximum of 200 members and limited capital. They need to apply for a new legal status every time they reach 200 members. Each time they apply, they start without prior experience in financing and construction. It’s challenging to certify their savings, and their members are restricted to a single housing complex (Ruiz-Tagle, J., 2020).

Open cooperatives: These organizations make a permanent contribution to their members’ housing issues. To operate, they require a minimum capital, have an unlimited number of members (but at least 200), and operate indefinitely. They can be a single cooperative with different housing plans, and they can provide financing facilities and savings certification. The main goal of an open cooperative is to find housing solutions for its members without profit motives, providing the following services: – Organizing demand and educating members on the importance of systematic savings to achieve homeownership goals – Developing housing programs with appropriate urban planning, architecture, and construction techniques at competitive costs – Delivering homes at their actual costs, benefiting from economies of scale For instance, Conavicoop is one of Chile’s largest open housing cooperatives and one of the 1,403 cooperatives in Chile. It is also one of the two cooperatives in Chile that are part of the International Cooperative Alliance (ICA).