Republic of Ecuador Land and Housing Market: Increasing the Production of Affordable Housing in Quito

    The paper offers a range of policy recommendations for consideration. While these are elaborated in the text, they include the following:

    • Rental housing vouchers
    • Grants for down payment assistance
    • Efforts to increase mortgage terms and to lower interest rates
    • Restructuring and alignment of land use planning to accommodate future growth
    • Expanding transit connectivity in the northern eastern, and southern valleys
    • Redevelopment of airport land into high density residential development (other underdeveloped sites could be redeveloped as well)
    • Streamline land use and zoning regulations to foster more efficient and speedy development
    • Introduction of inclusionary zoning to promote the development of affordable housing units


    The paper is organized into 9 sections, outlined in the table of contents. Sections 1 to 4 provide extensive descriptive data trends on population, population density, housing and housing density in the metropolitan area. These sections provide clear substantiation of Quito’s land constraints and the tendency for development in the relatively level valley to be characterized by high rise development. Sections 5 and 6 examined housing and household trends in the metropolitan area and offer an assessment of housing affordability in the metropolitan area. These sections draw on extensive interviews with developers and real estate brokers and use INEC 2010 income distribution data to gauge housing affordability. These sections also draw on cadastral data on housing and land valuation. The results of the sections illustrate Quito’s housing affordability challenges.