Using the 2003 and 2008 Quality of Life Surveys, this paper identifies the factors
that affect housing tenure decisions in Colombia. Households with higher
incomes are more likely to purchase than to rent, and the choice of formal housing
is positively associated with wealth. Households eligible for social housing
subsidies are more likely to purchase than to rent, and those working in the
informal sector are more likely to purchase informal dwellings. Subsidies and
access to mortgage credit have a large positive impact on demand. Finally,
savings have a positive effect on demand in 2008, but not in 2003. The positive
effect on demand of both subsidies and credit is explained by demand for lowincome
housing