Into the Guatemala the housing marketplace face one or two important pressures, a high shortage and you will poor quality regarding current households. Predicated on studies in the Guatemalan Vice Ministry from Construction, the entire houses shortage are step one.dos billion equipment, and of this type of significantly more you to definitely 700,000 compensate this new qualitative shortage. Around 20% regarding households lack one or more earliest characteristics and you will twenty five% of property suffer with overcrowding. Split by earnings, 591,167 properties are needed on worst plus the high bad properties as well as over 420,000 households for lower-moderate earnings family (Velasco and you can Unicamente, 2008).

Based on Business Financial quotes these loan providers security in the that 5th of your own demand for renovations and you will first qualities supply (Velasco and you will Solamente, 2007)

Deficiencies in the means to access financial qualities fundamentally and you will houses money especially aggravate the fresh new cover dilemmas of the worst. 74% out of Guatemalans are unbanked (eight.1 million property) and you can 55% ones never have accomplished a financial deal (WRI, 2006). Portion around the financing city and you will main financial stores into southwestern utilize the high majority of readily available house credit. Considering UNDP declaration banking companies play a fairly slight role inside the delivering borrowing to Guatemalans, almost any their money, really individuals throughout income groups see credit owing to casual sources (UNDP, 2007).