Like most urban areas in the Philippines, good-quality housing in Cagayan de Oro City is expensive. The affordability issues faced by the median income group in the city had prompted this research. The median income employees chosen as respondents to the survey of this study all come from a local university in the city. The main objective of this study is to investigate housing affordability among these middle-income earners. The results highlight the importance of the demographic and socio-economic backgrounds of households that influence housing adequacy and affordability. However, for most of the respondents who demand housing, income is still the major limitation in meeting the housing adequacy and affordability requirements. This paper contends that if affordability in housing is to be properly and adequately addressed in the city, there is a need for policy initiatives and interventions to assist the median income earners as well as incorporate social housing as a priority development policy.

Housing is a basic need and forms part of critical human rights. Studies have shown that the problem of housing is universal. However, this is more serious in developing countries in Africa and Asia, wherein most cities now account for over 90 percent of the world’s urban population growth. The need to ensure adequate housing thus constitutes one of the critical challenges facing development, especially in urban areas (UN Habitat, 2007). In the Philippines, Cagayan de Oro City is one of the emerging growth centers. One of the challenges that come with this is the provision of adequate housing and basic services. Like most urban areas in the country, good-quality housing is expensive. Most of it cannot be built without mortgage finance. Middle-income and even high-income households need mortgages in order to buy it, or attain long-term loans in order to build it. The affordability issues faced by this income group have prompted this research. This requires a better understanding of the socio-economic characteristics and needs of this group. This paper is part of the initiative in accomplishing that goal. It tries to provide a general situation are of the current housing conditions of selected full-time employees in City. In particular, these employees all come from a local university in the city. These employees are a good representative of the median income earners in the city. In so doing, it outlines the evidence that might inform decisions about a range of policy responses to housing needs, including, setting targets for affordable housing and allocations programs.