Chile Housing Construction
A 2023 report by the Chilean Chamber of Construction, “Housing Deficit in Chile: Evolution and Analysis of the Housing Crisis”, estimates that more than one million families in Chile lack their own home. The deficit includes 935,000 families living in overcrowded conditions, those living in irreparable housing, and those lacking financial means to buy their own housing. Additionally, there are 114,000 families living in informal settlements (campamentos) and more than 40,000 people experiencing homelessness. Those same numbers persist in Chile today.
In response, the Chilean government has implemented several initiatives to address this issue. The 2025 national budget, totaling $82 billion, includes increased funding for housing construction and urban development projects. Additionally, the Ministry of Housing and Urbanism (MINVU) has set ambitious targets to construct between 100,000 and 120,000 homes annually, aiming to reduce the housing deficit.
Despite these efforts, challenges persist, including delays in permit processing and disparities in construction productivity across different regions. For instance, while some areas complete housing projects within 12 months, others take 24 months or more. To overcome these obstacles, the government is focusing on streamlining administrative processes and promoting the adoption of efficient construction technologies.
Modular and prefabricated housing has been a game-changer in the United States for reducing construction costs and increasing efficiency. Analysts suggest that applying this approach in Chile could significantly accelerate the response to the country’s estimated 1 million home deficit while maintaining quality and affordability.
Modular and prefabricated housing solution:
- Modular Housing: Homes are built in sections (modules) in a factory and then assembled on-site.
- Prefabricated Housing: Components (walls, floors, roofs) are manufactured off-site and transported for final assembly.
- 3D-Printed Housing: Newer technology that constructs homes layer by layer using concrete-based materials.
Key Benefits
- Speed – Reduces construction time by up to 50% compared to traditional methods.
- Cost Savings – Prefabrication cuts material waste and labor costs, making homes more affordable.
- Quality Control – Factory environments ensure better standards than on-site construction.
- Sustainability – Uses fewer materials and can incorporate energy-efficient designs.
- Scalability – Allows mass production to quickly address large housing needs.
Potential Impact on Chile’s Housing Deficit
- Faster housing development: Could reduce construction times from 18-24 months to 6-12 months.
- Lower costs: Savings of 20-50% compared to traditional construction.
- Increased housing supply: Helps Chile reach its goal of 100,000-120,000 new homes per year.
- Sustainable growth: Supports eco-friendly construction with reduced waste and energy use.
The Chilean Government is focused on providing a cost-effective solution to its housing deficit. The MINVU is continuously releasing new opportunities for projects, like Urban Housing Plans (Proyectos Urbanos Habitacionales PUH). The Urban Housing Plans are a line of action of the Ministry of Housing and Urbanism that seeks integrated city planning on public land, which promotes social interaction, incorporates and safeguards land for equipment, and creates public spaces that provide a better quality of life for families. The development of competitive housing projects that integrate the PUHs aims to seek quality attributes in the design responses of the housing as well as the housing project as a whole.
While Chile’s housing deficit remains a pressing concern in 2025, concerted efforts from both the public and private sectors are underway to mitigate the shortage and improve access to affordable housing for its citizens. By targeting these opportunities with tailored solutions and a localized approach, U.S. companies can position themselves as key players in Chile’s solution to housing deficit reduction.
The U.S. Commercial Service in Chile can help you find the projects within your company’s area of focus that may be a good fit for your company.